The African Development Fund's Board of Directors approved a $22.7 million budget support grant for Malawi on 15 May 2024. The grant is aimed at implementing a national program to reform the agricultural sector and strengthen resilience to climate change. The Agricultural Productivity and Marketing Program, designed to catalyze economic growth and ensure food security within Malawi, also involves optimizing efficiency, transparency, and accountability in agricultural sector spending, as well as reinforcing disaster preparedness and climate resilience measures.
The funds will be used to support the development of a farmer registration module and the rollout of a national agricultural management information system. The targeted reforms include improving public financial management systems, particularly in relation to agricultural sector contracts.
Macmillan Anyanwu, African Development Bank Country Manager for Malawi, highlighted the importance of this timely support. He stated that "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 along with the Ministry of Agriculture will implement the program. The anticipated benefits extend not only to private sector entities but also to Malawians, especially those involved in the agricultural sector.
Alerts Sign-up