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Is Zambia’s $77 Million Maize Export Deal with Malawi a Smart Move or a Risky Gamble?

Zambia has signed a $77 million maize export deal with Malawi for 200,000 metric tonnes of grain. The agreement between Zambia’s Food Reserve Agency (FRA) and Malawi’s National Food Reserve Agency is being praised as a sign of strong regional cooperation. Is this the right move right now?

A deal meant to strengthen regional ties

The agreement follows talks between President Hakainde Hichilema and Malawi’s President Arthur Peter Mutharika. Agriculture Minister Reuben Mtolo said the maize will be sourced from Chipata in Eastern Province to cut transport costs and boost local business activity. He also assured that domestic food security will not be affected. This deal presents Zambia as a reliable regional partner and offers relief to Malawi, which has been struggling with poor harvests and rising food demand.

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Concerns about domestic food security

Zambia has faced erratic rainfall and droughts linked to El Niño, affecting maize production in several provinces. Mealie meal prices have been rising, and some districts are already experiencing limited supply. Exporting such a large quantity of maize under these conditions could tighten local markets and push prices even higher. If FRA’s reserves are strong, this deal may be safe. But if the reserves are barely enough for local consumption, the export could create problems later.

Could short-term gain lead to long-term pain?

Seventy-seven million dollars in foreign exchange sounds attractive. It will help boost Zambia’s revenue and strengthen trade within SADC. But if Zambia later faces shortages and has to import maize, the country will spend more than it earned.This cycle of exporting during good seasons and importing during bad ones has happened before. It helps in the short term but weakens food security in the long run.

Balancing diplomacy and domestic needs

Helping Malawi stabilise its food supply is good diplomacy. It strengthens Zambia’s reputation and supports regional food security. However, domestic stability must come first. If local consumers face high prices or empty shelves, the political and social cost could outweigh the diplomatic benefits.

FRA’s transparency

The FRA’s assurance that food security will not be compromised is welcome, but Zambians deserve to see the data. Publishing information on current reserves, annual consumption, and projected harvests would show whether the decision is based on solid planning. Transparency helps build confidence and reduces speculation.

It’s a wait and see situation

This maize export deal could be remembered as a bold and strategic move or as a costly mistake. It depends on how well Zambia manages its reserves and balances regional goodwill with domestic needs.For now, it is a high-stakes decision. Time will tell whether it brings regional pride or local pain.

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