Market News

Despite the country registering a bumper maize harvest during last agricultural season there are fears that there could be a scarcity of the commodity in the near future and the parliamentary committee on agriculture has advised government to consider issuing a maize export ban.
Among others, the Committee cited the heightening rise of fertilizer prices as a factor that would affect the amount of maize produce in the next growing season.
"The country may have lower yields if rising fertilizer prices are not contained... and allowing people to export maize will expose the country to food shortage and rising prices," Sameer Suleman, parliamentary agriculture committee chairperson, said.
A recent Malawi Vulnerability Assessment Committee (MVAC) report shows that the number of people requiring relief food in the country stands at 1.5 million, about 43 percent lower than 2.6 million projected last year but it could worsen based on the prevailing indicators.
According to Suleman, the ban would be in the best interest of all Malawians and that it would be reasonable to suspend exportation of maize now until the country was sure of a surplus.
Grain Traders and Processors Association Chairperson, Grace Mijiga Mhango, advised government to purchase more produce through Agricultural Development and Marketing Corporation (ADMARC) and National Food Reserve Agency (NRFA) before exporting.
"Government should not rely on maize in the hands of private sector players as some can informally export or hoard it at will," Mijiga-Mhango warned.
But trade minister, Sosten Gwengwe, said the food balance sheet informs that Malawi has achieved excess maize.
"People need to understand that if there are pockets of hunger in the country it means we will not be importing but we will use maize which is locally found," Gwengwe said.
Maize is a staple food for Malawi and the highest contributor to inflation's Consumer Price Index.
In the 2020-21 National Budget, the government allocated K12 billion to NFRA and ADMARC for maize purchases.
This year, maize production has been estimated at 4,581,524 metric tonnes (mt)-- compared to 3 785,712mt in the 2019-20 agriculture season.
Source: Nyasatimes.

China on Wednesday received the first consignment of dried chili pepper from Rwanda, making it the first African country to debut the product on the Chinese market.
The move follows a deal secured by Diego Twahirwa, a young Rwandan entrepreneur in agribusiness and China's GK International, located in Hunan Province.
Under the agreement, Rwanda will export 50,000 tonnes of dried chili, every year, for a period of five years.
"The imported 200 kg of dried chilies will be sold to dealers and then given to customers and food processing plants as samples," said Yu Jian, chairman of GK International in Hunan.
According to Twahirwa, the consignment delivered on Wednesday was a sample with a bigger one expected to be seen off on Monday, August 9.
This, experts say, is a good market opportunity for Rwanda in terms of expanding its steadily growing chili exports.
China has the world's largest number of dried chili pepper consumers, exporting 119,900 tonnes of dried chili peppers in the first half of 2021.
Across the Asian country, Hunan is a big consumer and processor of chili peppers across the country.
However, the pepper plantation in Hunan cannot meet the local demand from the dried chili pepper processing industry, according to reports.
Before imports from Rwanda, only seven countries were allowed to export dried chili peppers to China.
Last month, the General Administration of Customs gave the green light to dried chili pepper imports from Rwanda, making it the first African country to gain access to the lucrative market.
This is not the first time Rwanda exports dried chili to an international market.
The country has previously exported to India, a market exporter say has not been highly favorable due to small cost of the product, which made it a risky business.
"This new market will double the cost, with unlimited capacity, making it a sustainable market," said Twahirwa, adding, "It also gives a reliable market to local farmers for their chilli."
Based on this, Twahirwa asserts that Rwandans will have an opportunity to get a foothold in a lucrative market.
Source: The New Times

The free movement of people, goods and services are critical cornerstone in any development crusade. Africa is gifted with an abundance of natural and energy resources, outstanding geographical locations, as well as many ports that facilitate access to and within our African countries. Our region is also endowed with a wealth of human resources with a massive, 1.3 billion population, which constitutes a large market for African products and an abundance of labour which, if properly used, can enhance regional competitiveness.
But frequent new rules at our common borders are making this a far-fetch reality. It is time for Africans to work together be it in governments, private sectors and civil society to maximise the use of our available resources and claim the benefits of the AfCFTA.
The overarching objective behind the AfCFTA is the elimination or reduction of tariff and non-tariff barriers amongst the 54 Countries that agreed to be members of the bloc by providing a single market for goods and services, facilitated by movement of persons in order to deepen the economic integration and prosperity.
The question is, how far have we achieved these objectives.
Last year for example, The Gambia and Senegal had a boarder scuffle leading huge economic loss in trade.
While negotiation continued to find an amicable solution to the issue, Macky Sall, President of the Republic of Senegal has ordered the removal of barriers for free movement of goods & services.
He further reaffirmed that Senegal will respect all the protocols on trade and transportation and thus instructed his ministers of Transport and Interior to liaise with their Gambian counterparts to remove all barriers to free movement of persons and goods between Senegal and Gambia.
This was a welcome development taking into account that The Gambia and Senegal are one people divided by colonial masters.
This decision couldn't have come at a better time than now when the countries are working to accelerate regional integration through borderless Africa. To accelerate regional integration, there is need to expand access to trade finance and reduce behind-the-border trade restrictions such as excessive regulations and weak legal systems.
There is much that African countries need to do to increase intra-regional trade.
There is need to eliminate or significantly reduce non-tariff barriers that are major roadblocks to intra-African trade.
The list of non-tariff barriers is as long as it is comprehensive, ranging from prohibitive transaction costs to complex immigration procedures, limited capacity of border officials and costly import and export licensing procedures. For this to happen, it will take much more than political commitments; it will require practical steps on the ground even if they come with some costs.
"Free Trade puts consumers at the centre of economic activity. it lowers the cost of imports, which gives people the opportunity to buy more with the same amount of money: domestic producers have to compete with the lowest global costs or invest in new business."
Source: Allafrica.com