The government is said to have slashed the Agriculture Inputs Programme (AIP) budget by 67 percent within the past five years.
Spending towards the AIP has been lowered from $224 million in 2020 to $73 million in 2024 as part of sweeping agriculture reforms aimed at boosting productivity and reducing reliance on subsidies.
This is contained in a white paper published by Standard Bank, stemming from its recent Growth Conversations Forum held under the theme ‘Towards Economic Recovery and Growth by Bringing the ATMM Strategy to Life’.
It has transpired that the number of beneficiaries under the programme has dropped from 3 million farmers to one million, with resources being redirected toward irrigation infrastructure and commercial farming initiatives.
Agriculture Minister Sam Kawale confirmed to have presented the figures during the meeting.
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According to the paper, AIP subsidies had become “fiscally disruptive” due to their heavy reliance on foreign currency for fertiliser and input imports.
“[The] government has begun redirecting the bulk of its annual investment in the Agriculture Inputs Programme from subsidies toward irrigation and commercial farming, aiming to address food shortages linked to low productivity due to climate change,” the paper reads.
The paper further indicates that the agriculture ministry has expanded irrigation infrastructure, with over 6,000 hectares now under irrigation to support winter cropping and reduce climate vulnerability.
A $300,000 mega farm development project running from 2024 to 2026 is providing technical support to anchor commercial farms while crop and livestock insurance schemes are being introduced to de-risk farming activities.
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Key agriculture policies shared during the meeting included the Fertiliser Bill, Agriculture Extension Services and Irrigation policy, which have been reviewed and revamped to reflect current challenges and emerging opportunities.
The ministry is also collaborating with the ministries of Energy, Transport, and Tourism to create incentives for farmers to access agriculture-linked infrastructure and services, particularly irrigation facilities.
However, stakeholders at the forum warned that Malawi’s food security challenges persist, with the country producing less than other African countries despite regional productivity gains.
“Experts recommend diversifying eating habits from the staple maize to other crops like potatoes, groundnuts and soya while increasing investment in export-oriented crops such as legumes and pulses which are in demand in China and other African markets,” the paper notes.
The forum also heard calls for banks to speed up agricultural loan approvals and for the expansion of irrigation linked to renewable energy sources for commercial farming.
