Malawi receives K93bn investment from IFAD to commercialize small-scale farming

At least 300 000 highly vulnerable Malawian families will benefit from a new K94 billion (US$125.4 million) programme that aims at increasing productivity among small-scale farmers and strengthen their access to profitable markets.

President of IFAD Houngbo and Malawi’s Minister of Finance Mwanamvekha siging a financing agreement for the Transforming Agriculture through Diversification and Entrepreneurship Programme
Minister Mwanamvekha (L) and president of IFAD Houngbo show documents of new investment to commercialize small-scale farming for 300,000 Malawians
Malawi’s Minister of Finance Mwanamvekha (L), President of IFAD Houngbo and Ben Phiri Minister of Local Government

This follows a financing agreement for the Transforming Agriculture through Diversification and Entrepreneurship Programme (TRADE) signed between Government of Malawi and the International Fund for Agricultural Development (IFAD) on Friday in Rome, Italy.

Minister of Finance, Economic Planning and Development, Joseph Mwanamvekha signed on behalf of Malawi government  while IFAD was represented by its President Gilbert F. Houngbo and Regional Director for East and Southern Africa Division Sara Mbago-Bhunu.

Mwanamvekha in an interview with Nyasa Times from Rome, said  “the new investement is timely” as it will boost Malawi’s economy.

Agriculture is the backbone of Malawi’s economy. It accounts for 30 per cent of GDP and 80 per cent of foreign earnings, and it employs more than three quarters of the active population.

However, half of all farmers cultivate less than one hectare, making it hard for them to produce a surplus for market. This is compounded by the impacts of climate change, which contribute to the slow rate of poverty reduction.

TRADE will help Malawi achieve the United Nations Sustainable Development Goals (SDGs) and contribute to improving the livelihoods of rural people.

It will also help develop value chains for seven commodities – groundnuts, soybean, sunflower, Irish potato, diary, beef and honey.

The project justification comes at the back of survey-based insights about how unproductive Malawian small-scale farmers have become over the years in the absence of new farming methods and persistence of climate change effects.

It is estimated that half of all farmers cultivate less than one hectare, making it hard for them to produce a surplus for market.

“This new programme for Malawi will consolidate and scale up the success and good practices of the completed Rural Livelihoods and Economic Enhancement Programme,” said Ambrosio Barros, Country Director for Malawi.

“It will focus on the commercialization of smallholder agriculture through strengthened access to markets and financial services, while also focusing on adaptation to climate change, which is key for poverty reduction.”

The programme will strengthen the capacity of smallholder farmers, organize them into producers’ organizations and promote partnerships with small and medium enterprises. It will also develop roads and other rural infrastructure.

At least 55 percent of vulnerable women and 50 per cent of young people in the 11 districts covered by TRADE will benefit from programme activities.

Since 1981, IFAD has invested more than $336 million in 14 rural development programmes and projects in Malawi worth a total of almost $638 million. These interventions have directly benefited more than 2 million rural families.

Mwanamvekha was accompanied by Minister of Local Government and Rural Devepolment, Ben Malunga Phiri.

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Anastasia by Pepe Kale.
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Anastasia by Pepe Kale.

Anthu andale amwene ,sometimes they look like statues,Politics putting Ben in the forefront of the country leadership, is this reallia?

Angoni apaphata
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Angoni apaphata

Apumbwa alemerenso. Mavuto alipo

Chatsalira
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Chatsalira

I would have thought Minister of Agriculture will be in the forefront.in this venture. Anyway this is Malawi

Shonai
Guest

Bravo Piter.Kakakoma ponya mkamwa akakhala galu kuyang’ana mkwake.Agalu asiyeni in maso patsogolo.Maiko akunja akuyankhulatu mwamkokomo.Ngati ochita ndemanga aja muli anthu eni eni talaulani kupereka ko kandemanga ngakhale ka mzere umodzi.Amalawi ufiti basi.

ERUTU
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ERUTU

…………………………this K93 billion is just a window dresser for World bank as most of it will go back to the sender if you didn’t know. Mzungu sangangokupatsani ndalama ya udzu ai. Galamukani because there is nothing here worth praising for. You should be talking of Malawi becoming self-reliant not begging always. We have the potential to do this but leadership skills need to be upped first………………………………..

Justice Usiwa
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Justice Usiwa

Nyimbo nyimbo

Justice Usiwa
Guest
Justice Usiwa

I am still laughing while in deep slumber every night.The Kamphale’s argument on validity count votes ,is like the school master who argues with MANEB on validity of his candidates’ answers sheets when they are caught cheating is examinations ,with books ,likasa and internet phones

Alex mgeni
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Alex mgeni

Bwana mutumwa, nzerutu mulibe. Ndinu opusa zedi. Inu zoti anthu away DPP ngakuba simukuziwa? Ndalama izozo muwona phindu lake siliwoneka. It’s a team of selfish crooks running the country. That’s why we are saying zinthu siziyenda.

Smith
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Smith

Over K475 bn ($638m) has been invested in Malawi through IFAD projects since 1981. Where are the results? Now we are talking of investing K94bn in small scale farming targeting a total of 300,000 farmers. Will this kind of investment revolutionise Malawi’s Agricultural sector and turn the country into the breadbasket of Africa? – No way. The future of Malawi still lies in Commercial Agriculture with Greenbelt Initiative as a pivot. Yet in the current national budget, only K800m has been allocated to it out of K7bn which was proposed by the Greenbelt Authority. If IFAD is really serious about… Read more »

Sherrif
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Sherrif

Agalu inu mukhalira kutukwana anzanu choncho

Justice Usiwa
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Justice Usiwa

Anyani odwala away angapereke ndalama kwa Amalawi away?

bbb
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