Trade Wars in Africa

Flag of Tanzania

A few weeks ago, President Trump of the United States started trade wars with China and other countries; these have had a ripple effect throughout the rest of the world felt even in Africa. This has made countries realize the importance of growing local businesses as well, which should be a normal vision: one’s country first, develop the local infrastructures, local companies, agriculture, local people, and interests first. Africa has a greater need for this, as it is so far behind in terms of development. How can we have so many resources, but not develop them on the continent? I get to eat chocolate from cocoa beans from Ivory Coast, but it is written “product of Switzerland”. When you visit high end furniture places around the world, you will find that the wood comes from the forests of Cameroon or Gabon. The Democratic Republic of Congo (DRC) is full of cobalt, tantalum, and so many other resources, yet does not refine any of them. Should we even mention the oil producers of Africa? Before Dangote of Nigeria [Africa’s Richest Man Builds One of the World’s Largest Oil Refineries], the oil was taken from Gabon, Nigeria, etc, shipped to somewhere in Europe, and then imported back into the same African countries as refined products [Swiss Firms poison Oil destined for Africa]. How can many African countries import sugar like Cameroon, when the country is filled with sugar cane fields? Or how can they import onions like Senegal, when there are many local Senegalese onion farmers? There is a need to, as Thomas Sankara said, “consume locally [The Faso Dan Fani: Woven Cloth of the Homeland].”

Malawi
Malawi

The most recent trade war on the continent involves Tanzania, Malawi, and South Africa. Last week, normally bustling border crossings between Tanzania and Malawi were quieter than usual as an escalating regional trade row is taking place.

Last Thursday, Tanzania banned the entry of all agricultural imports from Malawi and South Africa in response to what has been seen as unfair restrictions on some of its exports. It is a tit for tat. South Africa has for years blocked the entry of bananas from Tanzania, yet it exports its grapes and apples to Tanzania. Last month, Malawi also blocked imports of flour, rice, ginger, bananas and maize. These various exports from South Africa will be impacted by the Tanzanian ban. Meanwhile, landlocked Malawi, which has relied on Tanzanian ports to carry its exports such as tobacco, sugar and soybeans to the rest of the world, will have to reroute its goods, most likely through Mozambique, or possibly South Africa?

Flag of South Africa

Tanzania’s Agriculture Minister, Hussein Bashe confirmed the ban on Wednesday, “We are taking this step to protect our business interests… in business, we must all respect each other.”  Since then, diplomatic efforts to resolve the trade issues have so far failed. 

He added that Malawi’s move had “directly affected” his country’s traders and described the restrictions as “unfair and harmful“, he added, “No Tanzanian will die from a lack of South African grapes or apples,” he said, adding that, “we are taking these actions to protect Tanzanian interests“.

Check out articles from BBC: Tanzania bans South Africa and Malawi imports as trade row escalates

Malawi-Tanzania trade row: ‘My bananas were seized and destroyed’