IFAD, Malawi launch US$53M agricultural development program

MALAWI- The Government of Malawi and the International Fund for Agricultural Development (IFAD) have launched the US$53 million Sustainable Agriculture Production Program Phase II (SAPP II) meant to improve smallholder agriculture in the country. 

IFAD will provide US$18.08 million toward the program, the government will allocate US$8 million, a pass-on revolving scheme is set to provide US$3 million, and the European Union has committed US$2.6 million toward the program. A financing gap of US$15.6 is still open to financiers.  

The seven-year program is intended to commercialize agricultural production in the country and enhance smallholder farmer resilience for improved food production, security, and export potential. SAPP II will target smallholder farmers in the Balaka, Dowa, Lilongwe, and Mzimba regions. 

IFAD revealed that the program will promote land, soil, and water management practices to enhance fertility, reduce pressure on natural resources, and restore degraded land by providing access to finance, training on agricultural value systems, and broadening the Malawian agribusiness market.  

Registered smallholder farmers will access finance through the Farmers Challenge Fund (FCF), which will aid in the purchase of farm inputs, agro-processing equipment, and post-harvest technologies.  

The program aims to tackle challenges that have plagued the country’s agriculture sector for decades: land degradation, limited resources, weak extension services, climate change, high post-harvest losses, and unstructured markets. 

IFAD revealed it targets 50% women participation in the program. 

Bernadette Mukonyora, IFAD’s Country Director for Malawi, said, “SAPP II represents a critical investment in the future of Malawian agriculture. The launch is a significant step towards a food-secure future.” 

“By empowering small-scale farmers, particularly women, and promoting sustainable farming practices, the program has the potential to transform the agricultural sector, improve livelihoods, and contribute to a more prosperous nation.” 

The government also welcomed the launch, describing it as an important opportunity for Malawi to grow its agriculture sector. 

Samuel Kawale, Malawi’s Minister of Agriculture, said, “It offers the country an opportunity to unlock the sector’s potential, increase productivity, create wealth, and improve food and nutrition security.” 

The program continues IFAD’s investments in Malawi. Since 1981, the organization has invested US$426 million in the Malawian agriculture sector in 15 projects, directly benefiting 2 million families in Rural Malawi.