MAIZE OPEN BORDER POLICY DOES NOT MAKE ZAMBIA FOOD INSECURE - IAPRI



A new report has revealed that despite experiencing a fall in maize production from last year, Zambia has emerged as the largest surplus country in the Region, surpassing South Africa, traditionally the region’s dominant maize exporter.
According to the Indaba Agricultural Policy Research Institute - IAPRI’s - 2015/16 Zambian Maize Market Outlook and Regional Analysis, once requirements for self-sufficiency are met, including setting aside a national reserve of 500,000 Mt, Zambia has an exportable surplus of 876, 738 Metric tons.
In contrast, the only other two surplus countries in the Region, Tanzania and South Africa have a surplus of 487, 000 Mt and 300,000 metric tonnes.
IAPRI’s research shows that keeping Zambia’s borders open at all times would not risk the country’s food security status; but it will help the country expand its market for the benefit of both farmers and consumers and the economy at large.
This is because openness to international trade can reduce price volatility and if properly implemented can help mitigate supply shocks.

The current export formalities and infrastructure do not allow more than 100,000 Mt of maize to be exported from Zambia each month. The Analysis adds that “with all factors constant, it would take almost eight months to export the maize surplus as of May 2015”.
A range of factors are holding Zambia back from increasing maize exports, which is undermining the much needed economic diversification. These include high transport costs and a range of non-tariff barriers which cartels Zambia’s ability to be competitive.
Further the Analysis highlights that this season has witnessed stronger private sector participation in maize marketing, due to the delayed FRA entry into the market by at least two months, and maintaining an open maize border policy by Government. Keeping the borders open is positive as this is likely to stimulate more production from farmers this coming season and move Zambia towards being a Regional food basket.
However, Government should avoid interfering in the maize market through ad hoc increases in FRA maize purchase prices and quantity. The increase of FRA purchase price from K70 to K75 and mandating FRA to increase purchases above the strategic reserve of 500,000 to 800,000 Mt may have led to reduced private sector participation in the market.
The report also notes that that Stakeholders including political parties can assist the Government by advocating for private sector led market development in the maize sector.

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