EFFECTS OF BAN ON MEALIE-MEAL

 Sir,

Recently, NAMBoard announced a ban on importing mealie-meal into the country. Their main reason was that they want to create food security for the nation, which is something good.

Today, I want to use what my economics teacher at Swazi National High School, Mrs Shongwe, taught me from 2017 until October 2018 to analyse the situation.

Due to the embargo, local people, rich or poor, will be forced to buy expensive mealie-meal from local farmers and businesses. This will allow farmers to make super profits. Demand will increase, which will force prices to increase too.

For example, if a farmer was producing 100 bags, charging E50 each, making a gross profit of E5 000, now prices will increase to E70 per bag, farmers will make a gross profit of E7 000, increasing it by 28.6 per cent. This will make them relax and depend on government’s protection, leading to inefficiency and exploitation of consumers by charging higher prices.

According to a World Bank report of 2016 and 2017, about 38 per cent of emaSwati live below the poverty line, which means they cannot afford basic necessities like food, shelter and clothing.  About 60.3 per cent are poor overall. There is a high rate of unemployment of about 23 per cent this year. These statistics and the public outcry are all proof that the country is not in a good position to ban the import of this stable food. This is because it will push about 50 per cent of the country’s population back to absolute poverty, which is against Vision 2022.

Poverty

Let us not forget that poverty is the main root of crime.  Some people have been buying mealie-meal from South Africa to sell it in the country. In the process, about 50 were employed, not for fun but to put food on the table for their children. Now they will lose those jobs, and the only solution to them will be criminal activities, some will become sex workers just to feed their children.

This will erode the already ailing economy of our country. State resources will be wasted in arresting and prosecuting petty criminals. The high crime rate will chase away investors, which will cripple the economy. Government should do what people want it to do, instead of an embargo, let us have a quota which will allow people to buy at least one bag of mealie-meal from South Africa.

Mancoba Dludlu

NOTE: In an effort to afford them the Right to Reply, this letter was emailed to NAMBoard on November 15, 2018 and they quickly replied, by saying they would try to respond by the end of the following day. However, this has not happened.

Ed  

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