Maize Trade Policies in Zambia : Options for Growth
The Government of the Republic of Zambia aims to transform the economy to support economic growth and facilitate job creation. Central to the transformation agenda is a commitment to open trade regime for agricultural exports and imports. Zambia ha...
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| Format: | Working Paper |
| Language: | English English |
| Published: |
Washington, DC
2022
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| Online Access: | http://documents.worldbank.org/curated/en/099845009122237020/P1770680cbdc81030a9e4092dc8bf6311f http://hdl.handle.net/10986/38018 |
| Summary: | The Government of the Republic of
Zambia aims to transform the economy to support economic
growth and facilitate job creation. Central to the
transformation agenda is a commitment to open trade regime
for agricultural exports and imports. Zambia has a long
history of import and export restrictions of agricultural
commodities, maize in particular. This analytical work
demonstrates that Zambia has lot to gain from committing to
open agricultural trade. Partial equilibrium modelling
estimates at US$97 million the annual gain of open borders
for maize exports over the next decade, compared to a
scenario of continued trade restrictions. Producer losses
from maize trade restrictions between 2023 and 2030 are
projected to amount to about US$1.42 billion. Such losses
would cancel out the massive aid provided by the Government
through the Farmer Input Support Program. While precise
point estimates need to be interpreted with caution given
the ongoing turmoil in global food markets, the direction
and magnitude of these results cumulatively point to
significant losses resulting from trade restrictions. The
report details options for a comprehensive reform package to
enable trade openness to effectively translate into
additional income for farmers, traders, processors, and
traders who participate in the sector. |
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