Malawi needs about K20 billion to roll out mega farms this year, The Daily Times has established.
According to the Ministry of Agriculture, government has identified 279 large-scale farmers who are ready to go this year with an aggregated hectarage of 18,500.
Controller of Agricultural Extension and Technical Services Alfred Mwenifumbo told the Agriculture Committee of Parliament that the anticipated hectarage is subject to availability of funds.
Mwenifumbo said this year, the mega farms will target three value chains of groundnuts, soya and maize.
“Funds required to support farmers we want to go into production this year is in the range of K20 billion.
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“We have made arrangements through the Ministry of Finance for the Malawi Agricultural and Industrial Investment Corporation (Maiic) to manage these funds, if they were made available, on behalf of government to administer loans to the farmers at a fee,” Mwenifumbo said.
He added that the farmers will not have to go through a due diligence process which Maiic does.
“This will be a special government fund guaranteed by government,” he said.
He added that the ministry is also mindful that all the farmers that will go into production need to have bankable farm business plans.
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According to Mwenifumbo, the ministry is working with the Lilongwe University of Agriculture and Natural Resources, who are the experts, to assist in the development of bankable business plans.
He said a group of young graduates have been identified to train the farmers in developing farm business plans.
He added that the United Nations Development Programme has pledged to support this component with K83 million.
Mwenifumbo said a group of tractor owners has been mobilised to pool their machines together to help in the mega farms initiative and that government has, so far, bought eight new tractors to help in the process.
Speaking when he launched the One-Stop Private Sector Mega Farms, President Lazarus Chakwera said the approach is a positive course that puts the nation on the path to national prosperity in collaboration with the private sector.
He described the initiative as a game-changer for the country’s economy “as most of Malawi’s foreign exchange revenue comes from agricultural commodities”.
“Given the forex challenge we have faced in the recent past, it is clear that our long-term solution has to involve boosting and diversifying agriculture productivity for export,” Chakwera said.
Chakwera then called for coordination between the government, in terms of policies, and the private sector, in terms of resources and skills, human and land resources to make the initiative a success.
