Tanzania’s National Food Reserve Agency (NFRA) has announced its decision to stop supplying maize to Zambia, citing the country’s failure to meet several contractual obligations, particularly around payment issues. According to the NFRA, Zambia has not addressed key concerns, including the non-submission of letters of credit and the lack of progress in implementing a new payment method that would involve setting up an escrow account as an alternative to letters of credit. In addition, the NFRA pointed to slow progress in the collection of maize by Zambia’s authorities as another factor in their decision.
However, Zambia’s Food Reserve Agency (FRA) has denied these claims, maintaining that they are still receiving maize from Tanzania. The FRA further stated that all payments are up to date, contradicting the NFRA’s allegations.
The ongoing maize trade between Zambia and Tanzania is of particular importance, as both countries have historically relied on each other to stabilize their food security, with Tanzania playing a significant role in supplying maize to Zambia.
This dispute emerged after an announcement in June 2024 by Zambia’s Chief Government Spokesperson, Cornelius Mweetwa, that the two countries had agreed to cooperate in enhancing maize imports. Despite this agreement, the recent developments suggest a breakdown in the smooth operation of the deal, with payment issues standing at the center of the dispute.
As this issue unfolds, it remains to be seen how it will affect Zambia’s food supply and whether the two countries can resolve these disagreements swiftly.
