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Regional Trade Dispute Disrupts Border Crossing Between Tanzania and Malawi
A typically vibrant border crossing between Tanzania and Malawi experienced a significant slowdown on Thursday due to an intensifying regional trade dispute. This dispute involves restrictions on agricultural imports and exports, affecting Tanzania, Malawi, and South Africa.
Tanzania Imposes Import Ban
Effective from midnight, Tanzania initiated a ban on all agricultural imports from Malawi and South Africa. This action is a response to what Tanzania perceives as restrictive measures imposed on some of its exports.
- South Africa has maintained a long-standing prohibition on banana imports from Tanzania.
- Malawi recently blocked imports of flour, rice, ginger, bananas, and maize from Tanzania last month.
“We are implementing this measure to safeguard our business interests… in commerce, mutual respect is paramount,” stated Tanzania’s Minister of Agriculture, Hussein Bashe, on Wednesday, confirming the import ban.
Diplomatic Efforts and Regional Free Trade
Efforts to resolve these trade issues diplomatically have been unsuccessful thus far; however, Minister Bashe indicated that discussions are ongoing.
This dispute arises at a critical time when Africa is aiming to enhance free trade through the establishment of a continent-wide free-trade area, which commenced operations four years ago.
Impacts of the Trade Restrictions
The ban will impact South African exports of fruits, including apples and grapes, to Tanzania. Malawi, a landlocked nation reliant on Tanzanian ports for exporting goods such as tobacco, sugar, and soybeans, will need to find alternative routes.
Malawi’s Perspective
Malawi’s ban on specific imports, announced in March, was intended as a temporary measure affecting goods from all nations to protect domestic producers, according to officials in Lilongwe.
“It is a strategic approach to foster an environment where local enterprises can prosper without the immediate strain of overseas competition,” Malawi’s Minister of Trade, Vitumbiko Mumba, explained at the time.
Tanzania’s Minister of Agriculture has asserted that Malawi’s actions “directly affected” Tanzanian traders, deeming the restrictions “unfair and detrimental.”
While confirming the import ban, Bashe assured Tanzanians that food security would not be at risk.
“No Tanzanian will suffer from a shortage of South African grapes or apples,” he declared, adding, “We are undertaking these steps to protect Tanzanian interests.”
As of now, neither South Africa nor Malawi has issued a formal response to Tanzania’s actions.
Reduced Activity at the Kasumulu Border Crossing
At the Kasumulu border post, a primary transit point for Tanzania-Malawi trade, only a small number of trucks transporting goods like fuel were observed on the Tanzanian side.
Typically, more than 15 lorries transporting agricultural produce would cross the border daily.
On the Malawian side, many trucks intended to transport bananas and tomatoes through Tanzania remained parked and unoccupied.
“The drivers are currently seeking alternative goods to transport. It has been challenging as they are accustomed to transporting agricultural goods and can no longer carry bananas, tomatoes, maize, or potatoes,” said Happy Zulu, a local business person.
Earlier Disruptions and Future Implications
Trade flows among Tanzania, Malawi, and South Africa, all members of the Southern African Development Community (SADC), have been experiencing disruptions since last week.
Previously, Minister Bashe shared a social media video displaying a pile of spoiled bananas in a truck stranded at the border with Malawi, expressing Tanzania’s difficulty in tolerating the situation.
Recently, tons of tomatoes also spoiled at the border following the denial of entry into Malawi to trucks from Tanzania.
Malawi has become an increasingly vital market for Tanzanian goods in recent years, with exports tripling between 2018 and 2023, based on data from Tanzanian authorities.
While Tanzania can explore alternative markets in nations such as Kenya, Namibia, and South Sudan, landlocked Malawi may encounter greater difficulties in exporting its goods.
A significant portion of Malawi’s exports transit through the Tanzanian port of Dar es Salaam, along with essential imports like fuel and machinery.
Losing access to Dar es Salaam may compel Malawi to reroute shipments through the Mozambican ports of Beira and Nacala, potentially incurring higher transportation costs.
Tanzania’s Stance
Minister Bashe has stated that the ban is intended to protect Tanzania’s interests, not to instigate a trade conflict.
“Tanzania will no longer permit unequal market access to persist to the detriment of its citizens,” he affirmed.