ZAMBIA HAS THE MAIZE AND SOYBEAN; WHAT IT NEEDS NOW IS TRADE PREDICTABILITY 

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The food basket ambition is real, but not automatic 

Zambia has long been described as a country with the potential to become a regional food basket. It has land, water, farmers, processors, and a strategic location near major food-deficit markets. In good seasons, the country can produce sizable maize surpluses. Its soybean sector is also increasingly important, not only for grain exports, but also for feed, edible oil, livestock value chains and agro-processing. 

But the central lesson from Zambia’s agricultural trade dialogue is that production potential is not enough. A bumper harvest does not automatically become export earnings. Large soybean crushing capacity does not automatically become industrial competitiveness. And regional demand does not automatically translate into reliable market access. 

The real issue is whether Zambia can trade predictably. 

The country sits near markets that need food — including the Democratic Republic of Congo, Zimbabwe, Malawi and other regional buyers. Yet, traders, millers, farmers and financiers continue to face uncertainty over export rules, permit approvals, government market interventions, storage capacity and logistics costs. This weakens confidence and limits Zambia’s ability to convert agricultural production into sustained regional trade leadership. 

Regional demand is there, but reliability matters 

The dialogue highlighted a striking opportunity. Regional demand for maize and soybean products is substantial. SADC and COMESA markets continue to import large volumes of maize, soybean cake and edible oils, much of it from outside Africa. This creates a natural opening for Zambia to position itself as a competitive regional supplier. 

But markets reward reliability, not just potential. Buyers in the DRC, Malawi, Zimbabwe or the wider region do not only ask whether Zambia has grain in a given year. They ask whether Zambia can supply consistently, whether contracts will be honoured, whether export permits will be issued on time, and whether policies will change suddenly after traders have already committed capital. 

This is where Zambia’s challenge becomes clear. When export decisions are unpredictable, regional buyers look for alternative suppliers. When traders cannot trust that exports will be allowed, they avoid long-term contracts. When banks see policy risk, they hesitate to finance grain aggregation and exports. The result is that Zambia’s production potential remains only partially converted into regional influence. 

Export bans solve one problem but create many others 

Food security is a legitimate public concern. Governments must ensure that domestic consumers are protected in times of shortage, drought or price spikes. But Zambia’s experience shows that abrupt restrictions, delayed approvals or unclear trade rules can create serious unintended consequences. 

Export bans and restrictions may appear to keep food at home. But they also depress farmgate prices, discourage future production, damage trader confidence and weaken regional trust. Farmers respond to price signals. If they believe that surplus production may be trapped in the domestic market, their incentive to expand production falls. Traders also respond to policy signals. If they believe that a contract may be disrupted by a sudden government decision, they reduce their exposure. 

The solution is not to abandon food security safeguards. The solution is to make them rules-based. Zambia needs a transparent agricultural trade policy framework that clearly defines when export restrictions may be used, what data will trigger them, how long they will last, and how existing contracts will be treated. 

A system based on national stock levels, food balance sheets, production forecasts and strategic reserve thresholds would create far more confidence than discretionary decision-making. 

The FRA question: food security or market distortion? 

A recurring issue in Zambia’s grain market is the role of the Food Reserve Agency. The FRA has an important mandate: to support national food security and maintain strategic reserves. But when public procurement becomes too large, too unpredictable or priced outside market conditions, it can crowd out private traders and distort the market. 

This matters because the private sector is essential to trade. Traders aggregate grain, negotiate contracts, move commodities, manage logistics and connect farmers to processors and export markets. If public agencies dominate grain purchases or set prices that make commercial trade uncompetitive, private actors step back. 

Zambia needs clearer role separation. Government should focus on strategic reserves, emergency response and market rules. The private sector should lead commercial aggregation, processing and exports. FRA procurement volumes should be announced in advance, linked to clear reserve requirements and aligned with available storage capacity. 

In short, Zambia needs a food security system that supports the market, rather than replaces it. 

Storage and logistics are not side issues 

Even when production is strong and buyers exist, trade can fail because of physical constraints. Storage shortages, high transport costs, weak feeder roads and border delays all reduce Zambia’s competitiveness. 

The dialogue noted that government purchases can sometimes exceed available storage capacity, creating post-harvest management problems. If another harvest arrives while carryover stocks remain high, pressure builds quickly. Without enough storage, the country risks losses, quality deterioration and costly emergency decisions. 

Logistics are equally important. Maize and soybeans are bulky commodities. A small difference in transport cost can decide whether Zambian grain is competitive against South African, Tanzanian or overseas suppliers. Road links into regional markets, border efficiency and access to reliable storage close to production zones all matter. 

For Zambia to become a regional food basket, it must invest not only in production, but also in the trade infrastructure that moves food from farms to markets. 

Soybeans offer an industrial opportunity 

The soybean story is especially important because it goes beyond grain exports. Soybeans are linked to animal feed, poultry, edible oils, livestock production and agro-processing. Zambia has significant crushing capacity, but utilization remains below potential. This means the country is not yet fully capturing the value that could come from processing soybeans domestically. 

A predictable trade regime would support investment in soybean processing and feed industries. If processors know they can access raw material reliably and sell into regional markets without sudden policy disruption, they are more likely to invest. If farmers see stable demand, they are more likely to expand production and improve yields. 

The opportunity is therefore not only to export soybeans, but to build a stronger regional agro-industrial platform around feed, poultry, oils and livestock value chains. 

Markets must be planned before production 

One of the strongest insights from the Zambia dialogue is that agricultural planning cannot begin and end with production targets. The country has ambitious goals: 10 million tonnes of maize, 1 million tonnes of wheat and 1 million tonnes of soybeans. But producing more without a clear market plan can create new problems. 

Before expanding production, Zambia needs to ask: Where will the surplus go? Which buyers will take it? What quality do they require? What price is competitive? What logistics route will be used? What financing is available? What policy guarantees can be offered? 

A regional market intelligence system would help answer these questions. Farmers need signals before planting. Traders need information before contracting. Government needs data before intervening. Banks need confidence before financing exports. 

Market planning should therefore precede production planning. 

The trade policy reform agenda  

Zambia’s trade reform agenda does not require abstract policy language. It requires practical steps. 

First, establish a rules-based export management framework. Second, digitize export permits and make approvals time-bound. Third, clarify the FRA’s strategic reserve role and reduce crowding out of commercial trade. Fourth, strengthen warehouse receipt systems and structured markets such as ZAMACE. Fifth, invest in storage, feeder roads, border efficiency and corridor logistics. Sixth, develop export finance instruments that reduce risks for traders and processors. Seventh, build a regional market intelligence system that identifies demand before production decisions are made. 

These reforms are mutually reinforcing. Better rules build confidence. Better storage reduces losses. Better finance enables aggregation. Better logistics improves competitiveness. Better market intelligence reduces guesswork. 

The missing ingredient is trust 

Zambia does not lack agricultural potential. It does not lack regional demand. It does not lack strategic location. What it lacks is a sufficiently predictable trade environment. 

Trust is the missing ingredient. Farmers must trust that surplus production will find a market. Traders must trust that permits and policies will not shift unexpectedly. Banks must trust that financed grain will move. Regional buyers must trust that Zambia can supply consistently. 

If Zambia builds that trust, it can move from being a country of agricultural potential to a reliable regional food supplier. 

That is the real food basket test. 

Read the full policy brief for a detailed analysis of the discussions, evidence and policy recommendations here.