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Abstract

This paper discusses the potential for intra-regional trade and sub-regional adjustment in the maize economy of the four SADC-countries Botswana, Malawi, Zambia, Zimbabwe and additionally South Africa. Sub-regional adjustments in supply, demand, prices and trade patterns are analysed employing a spatial partial equilibrium model. For the regional staple food product, maize, it can be shown that trade contributes to cost-minimal procurement and distribution of food in the region. Despite of a current degree of self-sufficiency of around one hundred percent in any of the countries (Malawi, Zambia and Zimbabwe) trade with a neighboring country would occur. Furthermore, South Africa would sell considerable amounts of maize to Southern Zimbabwe. Furthermore, the implications of drought for the maize economy are investigated.

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