Tanzania-Malawi Trade Ban Sparks Economic Turmoil for Small Traders

Escalating Trade War Hits Cross-Border Commerce

Small-scale traders are facing devastating losses as Tanzania enforces a ban on agricultural imports from Malawi and South Africa, escalating a regional trade dispute that threatens livelihoods across borders.

Businesswomen in Karonga, Malawi, reported multiple arrests on Friday as Tanzanian authorities cracked down on attempts to circumvent the ban imposed Thursday. The retaliatory measure comes after Malawi blocked Tanzanian flour, rice, ginger, bananas and maize last month to protect local producers.

“My bananas were seized and destroyed. Right now, our business has brought losses, and we only have a little money left,” lamented Jestina Chanya, a trader operating 50km from the Tanzanian border.

Diplomatic Tensions and Economic Fallout

Tanzanian Agriculture Minister Hussein Bashe described Malawi’s trade restrictions as “unfair and harmful,” prompting Dar es Salaam’s immediate ban on all agricultural imports from both Malawi and South Africa. The latter has long prohibited Tanzanian banana imports.

The normally bustling Kasumulu border crossing has become eerily quiet, with drivers idling as trade flows dwindle. On average, 15+ produce-laden trucks would cross daily before the ban.

Women Traders Bear the Brunt

Most affected are women small-scale traders who dominate cross-border commerce. Many described watching helplessly as their perishable goods rotted at checkpoints.

“The losses I have incurred are big because I can’t go buy anything any more, and I don’t even know how I will feed my children,” said June Mwamwaja, voicing a common plight.

Tanzanian traders also suffer, with Minister Bashe sharing video evidence of spoiled banana shipments blocked from entering Malawi. Tonnes of Tanzanian tomatoes met similar fates recently.

Market Preferences Fuel Trade Tensions

Malawian consumers’ preference for Tanzanian produce exacerbates the crisis. Traders cite better quality, larger sizes and competitive pricing across multiple products.

“Tanzanian products are big and sell very well… Our local products are more expensive. I just can’t compete,” explained trader Jeniffa Mshani, highlighting the economic pressures facing small businesses.

Uneven Enforcement Raises Concerns

Some traders allege selective enforcement, claiming wealthier businesses still move goods while small operators face arrests and confiscations.

“They target us with little capital, while those with big money still bring in goods,” accused potato and banana seller Jestina Chanya.

Many now resort to covert sales, drastically reducing quantities to avoid detection. “We only carry three or four bunches just to feed our children,” revealed Evelina Mwakijungu.

Broader Regional Implications

The dispute contradicts Africa’s Continental Free Trade Area (AfCFTA) objectives launched four years ago to boost intra-African commerce. Malawi’s reliance on Tanzanian ports for global exports adds complexity.

While Malawi’s trade ministry awaits official communication, Tanzanian exports to Malawi tripled between 2018-2023, underscoring deepening economic ties now jeopardized by protectionist measures.

Source: BBC News