Malawi’s private grain traders defy export ban amid low local maize prices

MALAWI – Malawi’s private grain traders have increasingly defied the government’s maize export ban as declining local prices push them to seek better returns in regional markets.

Entrepreneurs are reportedly exporting maize to Mozambique, Kenya and Rwanda through Tanzania, while continuing to supply their traditional market in Zambia, even as Malawi recently imported 200,000 metric tonnes (MT) of maize from the same country to fill what authorities had identified as a domestic shortfall.

Despite these movements, the government remains firm on enforcing the ban.

Authorities recently impounded three trucks carrying a combined 90 MT of maize being smuggled into Zambia through uncharted routes in the border district of Mchinji, highlighting tensions between policy aimed at safeguarding local food security and traders pursuing higher prices abroad.

Grace Mijiga-Mhango, president of the Grain Traders Association of Malawi, criticised the lack of local maize purchases by government agencies, arguing that traders are left with few options.

“There is always a blame-game between politicians and farmers or traders! It’s a political crop and very unfortunate. I wouldn’t know how much maize traders have because they don’t like declaring and it’s difficult to know how much maize we have,” she said.

She added that meaningful local purchases are unlikely before the budget is passed.

“We actually don’t expect any local purchase of maize [by government agencies] because there is no money for that. Maybe after the budget is passed. So, what do traders do? They have to sell elsewhere and we are creating a very big problem,” Mijiga-Mhango said, noting that exporting maize is easy but bringing it back later is costly and challenging.

She further explained that during harvest time, Mozambican farmers sell maize to Malawi only to rebuy it later, while maize routed through Tanzania is mostly destined for Kenya and Rwanda, where food deficits persist.

 “Tanzania has enough maize, so those exports are heading to Rwanda and Kenya because there is food deficit that side. Our only hope is the maize in the fields which look promising, otherwise, we were not supposed to export this maize,” she said.

The concerns come after the National Food Reserve Agency (NFRA), which began buying maize on December 31, 2025, halted its purchases, raising uncertainty among farmers and traders relying on government purchases.

The International Food Policy Research Institute (Ifpri), in its December 2025 Maize Market Report, confirmed ongoing cross-border flows.

“In continuation of a trend that began in November, there was a strong flow of maize exports to Zambia through Mchinji border for much of December,” the report said.

Exports also moved through Jenda and Mqocha in Mzimba, from Karonga to Tanzania, and from Chikwawa to Mozambique. However, imports at other border points remained steady, keeping retail maize prices unusually stable in the final quarter of 2025.

William Chadza, executive director of the Malawi Agricultural Policy Advancement and Transformation Agenda Institute, said traders should be allowed to sell maize elsewhere when government purchases are delayed.

“The main challenge has been the timing of government maize purchases through NFRA and Admarc who rely on government financing,” he said, adding that delayed market entry leaves farmers selling at low prices.

He cautioned that exports are risky given production uncertainties and suggested processing maize into flour or animal feed to fetch higher returns.

Driana Lwanda, board chairperson of the Civil Society Agriculture Network, said traders face three options: hoarding maize, informal cross-border trade, or selling to local private millers.

She urged better data on national food needs before easing restrictions.

“Once we know how much we need and the supply we have, allow the rest to contribute towards forex through regulated export window where structured export permits can be issued to traders to export using the quota system,” she said.

Lilongwe University of Agriculture and Natural Resources director of research and outreach Sam Katengeza questioned the enforceability of the ban, noting that informal markets remain vibrant.

Ministry of Agriculture, Irrigation and Water Development spokesperson Salome Gangire asked for more time before commenting on the issue.

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