USAID, Pyxus invest $44.6 million in Malawi’s groundnut sector
The United States Agency for International Development (USAID) in collaboration with Pyxus Agriculture Malawi Limited have jointly invested $44.6 million, approximately K50 billion in the country’s groundnuts production sector which aims at boosting sustainable and resilient economic growth locally.
The two parties signed the multibillion kwacha financial partnership agreement in Lilongwe on Thursday which was graced by the visiting USAID’s Deputy Administrator Dr. Isobel Coleman and United States Ambassador to Malawi David Young among other dignitaries.
The $44.6 million investment includes $14.6 million from the United States government and around $30 million from Pyxus Agriculture. The money will among others, be channeled to support farmer financing for high quality seed, expand markets for local groundnuts farmers, boost value addition for groundnuts products as well as spur sustainable production of high value groundnuts varieties that are in high demand on international markets.
Speaking after signing the financial partnership at Pyxus premises in Lilongwe, Coleman said the agreement will see USAID and Pyxus Agriculture Malawi Limited collaborate in groundnut production and processing which in the process will support the livelihoods of various smallholder famers in the country.
According to Coleman, the country has tremendous potential for private sector led growth which in turn can boost the social-economic standards of people in including smallholder farmers who are the majority across the country.
“The private sector especially those in the agriculture sector is playing an unprecedented role in creating and shaping opportunities that improve many people’s lives both economically and socially hence the need for all stakeholders to support it fully,” said Coleman.
According to Coleman, agribusiness ventures across Africa are the largest employer and engine for economic growth hence there is a need to move away from subsistence agriculture and move towards a commercially sustainable industry that is critical for lifting people from perennial hunger and poverty.
“The United states government is always committed to improve the agriculture productivity and growth through dependable and sustainable ways that can help to boost smallholder farmers economically across the globe including here in Malawi hence signing this financial partnership with Pyxus Agriculture,” she said.
In his remarks Pyxus Agriculture Limited Managing Director Ronald Ngiwra said the financial partnership with USAID has placed his company at the forefront of private sector led economic and inclusive growth which in the process will benefit many smallholder farmers economically through availability of a dependable market as well as availability of high quality groundnuts seed.
According to Ngwira, during the most recent crop season over six thousand farmers from across the country have already benefited from the financial partnership as affordable financing was made available, a development that enabled them to access and grow new improved groundnut varieties which gave them high yields.
“As Pyxus we are honoured and excited to receive this $14.6 million award from USAID Malawi, which in turn will allow our company to further invest in more inclusive, diversified, and resilient private sector that drives sustainable wealth creation for Malawi and Malawian farmers,” said Ngwira.
Ngwira disclosed that the just signed financial support will enable his company to expand faster by among others research for more improved varieties of groundnuts which will allow the local farmers to produce more groundnuts for value addition and in the process produce high quality peanuts to international markets.
Pyxus Agriculture Limited is a subsidiary of Pyxus International, Inc which is dedicated in sustainable production of value added agricultural products across the world.
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