Maize prices rise in Kenya and Malawi due to lower fertiliser usage, adverse weather, and trade bans, while Tanzania exports surplus maize.

Maize prices in Kenya and Malawi have increased significantly in comparison to other East and Southern African (ESA) countries. Economists attribute this to lower fertiliser usage in Malawi due to cost increases, adverse weather conditions, and trade bans, leading to decreased maize production. Tanzania, on the other hand, has experienced bumper harvests due to above-average rainfall, making it a key maize exporter to the region. If regional markets were operating efficiently, maize prices in Kenya and Malawi would reflect the prices in surplus-producing countries like Tanzania. Competition authorities should take a regional approach to ensure that markets operate well in terms of pricing and trade, by monitoring markets, assessing barriers to regional trade, and intervening in cases of anti-competitive conduct.

August 25, 2024
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