New Maize shock as Tanzania freezes exports permits for Kenyan traders 

Tanzania has frozen issuance of new maize export permits in what could worsen the shortage of the product that has driven prices of flour to historic highs, Several millers and animal feed manufacturers told Business Daily the neighbouring country stopped issuing permits last week, tightening the supply of the staple locally…

“We have been unable to get maize from Tanzania since last week after the country stopped issuing export permits to traders with the cutting off of stocks from Tanzania expected to push up the cost of flour,” said Ken Nyaga, the chairperson of the United Grain Millers Association.

John Gathogo, publicity secretary of the Association of Kenya Feed Manufacturers, said their members are unable to get stocks from Tanzania as well following the move that has seen processors cut down on production.

Millers are issued with a one-off permit for grain export from Tanzania and they need to apply for a new one every time they intend to ship maize out of that country.

Tanzania has for the last two years become a key source market for maize to bridge deficits especially after the two countries mended their trade ties with the change of regime last year following the death of former President John Magufuli.

Data from the Eastern Africa Grain Council shows imports from Tanzania nearly grew five-fold last year to 469,474 tonnes from 98,000 tonnes in 2020. The development has left processors jostling for stocks that are available locally and a few imports coming in from Zambia. Tanzania restricts exports to protect its local stock following poor harvests.

Source: https://nation.africa/kenya/business/new-maize-shock-as-tanzania-freezes-exports-permits-for-kenyan-traders-3939544