By Cathy Maulidi
Over 100 farmer-based cooperatives in the country are expected to benefit from a $20 million (approximately K34 billion) that has been provided by the International Fund for Agricultural Development (IFAD) through a government programme called Transforming Agriculture through Diversification and Entrepreneurship (Trade).
Trade Programme Agribusiness Specialist Linda Munthali disclosed this on Tuesday in Lilongwe, where Minister of Gender Jean Sendeza presented grants to the first set of beneficiaries.
“Trade Programme, being a Government of Malawi programme, saw the gaps that were there for farmer-based cooperatives to access finances and, as such, providing grants is one way of making sure that the cooperatives have access to finances.
“The goal is to contribute to improve sustainable livelihoods of rural people in Malawi through value chain commercialisation and resilience of rural poor and smallholder producers. We are targeting over 100 farmer cooperatives and the overall amount to be disbursed is $20 million,” Munthali said.
According to Munthali, the grants are aimed at promoting agricultural commercialisation and are under a facility dubbed Agricultural Commercialisation Innovation Fund (ACIF).
“ACIF grant has been designed to accelerate agriculture commercialisation among smallholder farmers through the promotion of models that facilitate sustainable producer-private-public partnerships and foster an enabling environment for smallholder commercialisation.
“Trade Programme is providing the grants to six farmer cooperatives under the small matching grant window in the first phase and number is expected to increase in the next phases. The grant is expected to give priority to bring sustainable innovations to value chain development of targeted commodities and create sustainable market linkages for the smallholder producers,” she said.
Sendeza presented the grants to Mzati Women’s Groundnuts Producers Cooperative from Lilongwe, which received K35.7 million, and Naphini Producers and Marketing Cooperative, which received K131 million.
Sendeza said Malawi can never be the same if smallholder farmer cooperatives are supported the way the Trade programme is doing.
“Other programmes should emulate what the Trade programme is doing. We have seen a lot of organisations where people are failing to access loans. There are programmes like NEEF and Fines which have a window for women to get loans but if you ask women they will tell you they don’t have access to those monies because of numerous tough strings that are attached.
“It is sad and my appeal to these other organisations is that can you let women access the funds easily, like what the Trade programme is doing?” Sendeza said.
The programme is expected to run until 2026 and maximum grant for cooperatives that meets the eligibility criteria is K175 million.
