Tanzania, Malawi, South Africa end costly trade war

• Tanzania, Malawi, and South Africa have entered into talks with a view to end a devastating trade war.
• Malawi, South Africa ease trade restrictions as Tanzania lifts retaliation ban on transit goods.
• Countries reaffirm their commitment to strengthening trade, and fostering economic cooperation.

Tanzania and Malawi have finally come to an amicable end to their trade war with authorities in the two countries burying the hatchet after bilateral discussions. The talks resulted in a Simplified Trade Regime Agreement (STRA) that covers South Africa, a regional trade powerhouse that was also caught in the line of fire between the two nations.

In a media communique released at the start of this month, Tanzania’s Minister of Agriculture Hussein Bashe said previously instituted restrictions have now been suspended.

He said the two countries have reaffirmed a shared commitment to strengthening trade, fostering economic cooperation, and resolving what he described as ‘existing issues.’

The media report that was jointly-signed by senior officials of the two countries said they have agreed to lift trade restrictions and pledged to finalize related legal frameworks. “Both delegations reaffirmed their commitment to finalizing the relevant legal framework for the STRA and to implementing it upon completion of domestic legal processes by May 30,” reads the communique in part.

The document, which bares signatures by Tanzanian Minister of Foreign Affairs and East African Cooperation Mahmoud Thabit Kombo and Malawian Minister of Foreign Affairs Nancy Gladys Tembo, marks the end of the protracted trade standoff.

To reach this agreement, Tanzania took the first peace steps by lifting an import ban on plant and plant products from Malawi, which the country had imposed earlier on April 23.

In the wake of that decision, the government of Malawi went on to commit to facilitate imports and exports between the two countries, that it had blocked. The trade war was ignited after Malawi imposed restrictions on selected agricultural produce from Tanzania, and in turn, Dar es Salaam implemented a raft of reciprocal measures.

Likewise, Tanzania went on to impose similar restrictions on South Africa, which had also blocked agricultural imports from Tanzania. “All (restrictions) have been suspended,” announced Tanzania’s Bashe.

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Tanzania issues ultimatum on Malawi, South Africa

Earlier, Tanzania had issued a one-week ultimatum to both Malawi and South Africa to reverse their position on import restrictions imposed on Tanzania’s maize, rice, maize flour, plantains and ginger.

“Should this ultimatum elapse without any change in position by the governments of Malawi and South Africa, Tanzania will retaliate,” Tanzania warned Malawi and South Africa.

The warning was no bluff either, when Malawi and South Africa hesitated, Tanzania acted, it blocked imports from the countries and the trade war came to full effect.

Before announcing it’s retaliation, Tanzania made public that it had received official communication from the government of Malawi banning importation of various agricultural crops from Tanzania, listed above.

“This measure has directly affected activities of our businessmen who export crops to Malawi,” the Tanzanian minister decried.

“It should be understood that for the past five years, the government has made a lot of efforts to open up a market for plantains in South Africa but to no avail,” Bashe explained.

“This situation is akin to challenges we faced for the past ten years in finding the market for avocadoes, till we decided to take action to protect our interests,” the minister revealed in reference to the retaliation bans it imposed on the Malawi and South Africa.

Tanzania blocked imports from Malawi and to make its stance clear, it went on and blocked much needed fertilisers that transit through the port of Dar es Salaam to landlocked Malawi.

“As of the first of May, Malawi was supposed to start importing fertilisers from Tanzania, we will not allow any fertilisers to go to Malawi,” Tanzania announced.

How trade war standoff started

Similarly, Tanzania blocked imports from South Africa affecting perishables likes apples and grapes.

Announcing it’s actions on X, Tanzania via it’s Minister of Agriculture said; “By this time, 6pm, as Minister for Agriculture, I have not received any notice (from Malawi and South Africa). Therefore, I officially announce starting this night the following issues to these two countries. South Africa has been exporting to Tanzania fresh apples, therefore from today it’s illegal to import South African fresh apples. South Africa exports different fruits, including grapes, now from today it’s illegal to import South African fruits.”

“Therefore, we will not allow any agricultural crop from South Africa to come to our country,” the minister concluded on the part of South Africa.

“Regarding Malawi, they too haven’t recanted the notice they issued. Therefore, I officially declare it is illegal to import to Tanzania any agricultural crop from Malawia starting today. Apart from that, the two countries especially Malawi, will no longer be allowed to transit their goods via our port,” it is this transit block that is believed to have knocked the wind out of the trade standoff.

However, that was not the end of Tanzania’s measures, it’s Minister of Agriculture warned that the restrictions will be extended to maize, a staple that Malawi cannot do without.

“All maize that they bought to solve their hunger problem will not be allowed to leave the country for Malawi,” but then again, it may be this block of the life saving grains to starving Malawians that changed things.

The Minister was nonetheless keen to reassure Tanzanians that the measure taken will not affect Tanzania’s food security.

“The measures do not endanger national food security. There is no Tanzanian that will die due to lack of South Africa’s grapes nor apples,” the minister quipped.

It worked, as of the end of April, Malawi and South Africa relaxed their stances and said they are ready for talks. Tanzania’s Minister of Agriculture announced a government notice pausing all trade restrictions and giving room for negotiations among the three countries.