Zambia’s Maize Export On Tight Stance
Zambia’s US $77 million maize export deal with Malawi carries both economic gains and cautionary implications.
On the foreign exchange side, it provides a short-term boost to Zambia’s reserves and balance of payments, helping ease pressure on the kwacha if proceeds are received in hard currency.
In terms of food security, the exports appear feasible given a reported surplus from the recent harvest, but risks arise if the government draws heavily from strategic reserves or delays paying farmers potentially undermining domestic supply and next season’s production.
For local markets, the deal could raise maize and mealie-meal prices slightly if not well phased, though it also offers better returns to farmers and supports regional food stability in Malawi.
Overall, the export is economically beneficial but requires tight management of stocks, transparent payment systems, and close monitoring of domestic prices to prevent internal shortages or inflationary pressure.
