The Board of Directors of the African Development Fund on 15 May 2024 approved a $22.7 million budget support grant for Malawi to implement a national program to reform the agricultural sector and strengthen resilience to climate change.
The Agricultural Productivity and Marketing Program is designed to catalyze economic growth and ensure food security within Malawi. It also entails the optimization of efficiency, transparency, and accountability in agricultural sector spending, alongside reinforcing disaster preparedness and climate resilience measures.
The funds will support the development of a farmer registration module and the rollout of a national agricultural management information system. Targeted reforms include improving public financial management systems, particularly regarding agricultural sector contracts.
Macmillan Anyanwu, African Development Bank Country Manager for Malawi, emphasized the significance of this timely support. "This budget support operation is timely, as it comes when Malawi is facing unprecedented macroeconomic challenges. We encourage the Government to ensure effective implementation of the program to help tackle some of the binding constraints to commercialization of agriculture and increasing agricultural productivity."
The initiative aligns strategically with efforts to stimulate private-sector investments in agriculture, thereby boosting productivity, value addition, and export capacity within specific value chains.
Malawi's Ministry of Finance and Economic Affairs and the Ministry of Agriculture will implement the program. The anticipated benefits extend to private sector entities and Malawians, especially those in the agricultural sector.
