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Why Tanzania’s trade spat with Malawi, S.Africa is mutually harmful

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Tanzania's Agriculture minister Hussein Bashe. PHOTO | FILE

Dar es Salaam. Agriculture minister Hussein Bashe’s decision to escalate a diplomatic row over cross-border trade with Malawi and South Africa has raised concerns over the potential repercussions on regional commerce, with analysts urging a swift diplomatic resolution.

Malawi recently imposed a two-year import ban on a wide range of agricultural products, including maize flour, fresh milk, rice and various fruits, in a bid to conserve foreign exchange and protect domestic small and medium enterprises (SMEs).

The move, as quoted by the online version of Malawi’s The Nation (mwnation.com), was announced in a government gazette dated March 13, 2025. It has since been met with sharp criticism from Tanzania.

In a retaliatory measure announced on Wednesday, Mr Bashe declared a comprehensive ban on agricultural imports from both Malawi and South Africa.

He further stated that Tanzanian territory would no longer serve as a transit route for agricultural products destined for Malawi, a decision that could affect Malawi and Tanzania's logistics sector as well.

“South Africa frequently exports fruits like grapes and apples to Tanzania. From now on, these products will not be allowed into our borders,” Mr Bashe said.

He criticised Malawi’s restrictions on Tanzanian maize exports, especially as the country continues to procure maize from Tanzania’s National Food Reserve Agency through the World Food Programme (WFP).

“They are purchasing maize through the WFP, yet they deny Tanzanian traders access to their market. As far as we are concerned, none of that maize will pass through Tanzanian territory,” he asserted.

Adding to the list of retaliatory actions, Mr Bashe announced the suspension of fertiliser exports to Malawi, which were scheduled to commence on May 1, ahead of the country’s planting season.

Mixed reactions

The measures have drawn mixed reactions domestically. While some analysts supported the government’s firm stance, they cautioned that the broader implications could hurt informal traders who depend on cross-border commerce.

The Deputy National Chairman of the Association of Machinga (small scale traders) Tanzania, Mr Stanley Lusinde, acknowledged that many small-scale vendors rely on selling imported apples and grapes from South Africa. He, however, appealed for calm, expressing confidence that the government would pursue a resolution.

“What we ask is that ministers from all countries come together and find a way to resolve the matter. Dialogue is key, and we are confident that an agreement will be reached,” Mr Lusinde said.

The Chairman of the Agricultural Council of Tanzania (ACT), Mr Jitu Soni, also weighed in, urging Tanzania, Malawi and South Africa to emulate previous peaceful resolutions of trade disputes, such as the aflatoxin-related maize issue between Tanzania and Kenya.

“Cross-border traders and farmers are the most affected. Neighbouring countries depend on each other due to differing harvest seasons,” he said.

Mr Soni questioned the rationale behind Malawi’s decision, given that it previously purchased maize from Tanzania via the WFP despite quality concerns.

Call for diplomacy

Experts in economic diplomacy have also voiced concern. Prof Kitojo Wetengere criticised the apparent lack of stakeholder consultation, warning that national interests must be balanced with citizen welfare.

“They [farmers and traders] are directly affected and can put pressure on the government. This situation requires inclusive engagement, not unilateral decisions,” he said.

Prof Wetengere also questioned whether President Samia Suluhu Hassan—widely regarded as Tanzania’s chief diplomat—had been consulted.

“We need someone to bring all parties back to the table. Why was it possible for the Tanzanian and Kenyan presidents to resolve similar issues, but not in this case?” he posed.

Citing land-locked Malawi’s dependence on Mozambique's and Tanzanian ports for trade, including Nacala, Beira, Dar es Salaam and Tanga, the professor urged the governments involved to avoid actions that could escalate tensions.

Regional perspective

In its April 21 editorial, Malawi’s Nyasa Times acknowledged the country’s sovereign right to protect its industries but warned against neglecting regional cooperation frameworks such as SADC, COMESA and AfCFTA.

“Announcing a ban without prior consultation or a clear roadmap for scaling up local supply is an invitation to a trade war,” the editorial read.

The paper criticised the alleged lack of response to Tanzania’s diplomatic outreach and warned that while Malawi relies on multiple ports in the region, its trade also passes through Tanzania—making diplomatic cooperation essential.

Observers noted that while South Africa might face minimal impact, prolonged tensions between neighbouring Tanzania and Malawi could have more severe and lasting consequences for regional integration and food security.