Trade Tensions Rise as Tanzania Bans Agricultural Imports from Malawi and South Africa

Trade Tensions Rise as Tanzania Bans Agricultural Imports from Malawi and South Africa

Tanzania – Malawi relations have become very tense. This comes after Tanzania’s arbitrary ban on all agricultural imports from neighboring Malawi and South Africa just a few weeks ago. Tanzania’s Agriculture Minister, Hussein Bashe’s announcement has sparked the most alarm. Today, traders and stakeholders in both countries are justifiably concerned. Bashe explained the ban; it was to save our business interests. He pointed out that this ruling directly affects Tanzanian traders dependent on cross-border commerce.

According to Bashe, the ban is “unfair and harmful.” He’s quick to point out that it tests the countries’ trade relations. Even after more than a week of continuing protests, according to some reports diplomatic overtures to ease tensions made primarily by the U.S. have thus far failed. New negotiations have begun, though it is still unclear where things will go as each country works to address these trade barriers.

Malawi’s trade ministry spokesperson, Patrick Botha, said that they are yet to receive official correspondence on the ban. The lack of clear, consistent communication spreads panic and chaos within the trading community. They are now in the thick of how they implement and live with these restrictions. South African authorities have so far been silent on what the ban means for their agricultural exports.

Of Tanzania’s agricultural exports, Malawi has been an interesting case of exponential growth, with exports to the landlocked country tripling between 2018 and 2023. This increase, in turn, is a mark of growing importance of Malawi as a market for Tanzanian exports. Malawian traders have displayed an overwhelming demand for Tanzanian agricultural goods. In particular, they prefer Tanzanian potatoes and bananas, due to their size and quality relative to what is locally available.

Evelina Mwakijungu, a Malawian trader, spoke about how the ban was hurting her business and toplining livelihood. She said that she only brings home the little bunches of bananas so her children can eat. The ban has stopped her big consignments, creating devastating hardships for her family.

“We only carry three or four bunches [of bananas], just to earn a living for the children,” – Evelina Mwakijungu

Another cross-border trader, Jestina Chanya, said she suffered huge losses after her bananas were destroyed at the border. She expressed dismay that her small business has been hit hard after the ban was put into place.

“My bananas were seized and destroyed. Right now, our business has brought losses, and we only have a little money left,” – Jestina Chanya

The dire circumstances have forced many of the traders to gamble responsibly. These reports make it clear that people attempting to cross the border are being met with arrest and detention. An unnamed trader shared their frustrations about being turned back at the border while larger competitors continue to operate freely.

“When we bring goods from Tanzania, they turn us back. One of us was stopped and arrested right at the border,” – unnamed trader

Based on current market dynamics in Malawi, Tanzanian products are preferred because they are cheaper and of better quality. This feeling was shared by an artisan baker who described how they cannot compete with big business.

“Tanzanian products are big and sell very well in the market, and their prices are good. Our local [Malawi] products are more expensive. I have nothing to do – I don’t have the capacity to compete with those [who have big capital]. I just can’t,” – unnamed trader

The impacts of this trade dispute are dire. Recently, millions of tomatoes rotted at the border because Tanzanian lorries were not allowed to enter Malawi. Tanzanian traders and exporters have incurred losses due to South Africa’s ban on banana imports from Tanzania.

The economic ramifications of the ban go further than direct lost revenue. June Mwamwaja, another trader hit by the temporary ban on imports, shared her pain and apprehension over her financial prospects.

“The losses I have incurred are big because I can’t go buy anything anymore, and I don’t even know how I will feed my children,” – June Mwamwaja

With tensions still escalating, Botha said he hoped that the eyes of Malawi’s neighbors would help save them from repercussions.

“We are hearing [about] this from social media. At an appropriate time, we will comment,” – Patrick Botha

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