By Wezzie Gausi:
Minister of Agriculture Sam Kawale has expressed hope for a smooth take-off of various mega farm initiatives in coming months with over K530 billion expected to be invested in the agriculture sector.
Briefing journalists in Lilongwe Monday, Kawale said currently, Treasury is set to provide K20 billion to the Malawi Agriculture and Industrial Investment Corporation (MAIIC) and K10billion to the National Economic Empowerment Fund (NEEF), to go towards establishment of mega farms.
This is beyond the K1.5 billion that government gave the GreenBelt Authority (GBA) and K500 billion expected from the World Bank through the Agriculture Commercialisation (Agcom) project.
He said farmers will be able to access these funds at a low interest rate of 15 percent.
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This also comes at a time the government has procured eight tractors which farmers can borrow for use in their fields through Agriculture Development Committees (ADC).
“Farmers should at least demonstrate their credit worthiness. The farmers are being assisted in developing a bankable farm business plan as a basis for credit assessment by the two financial institutions,” Kawale said.
Lilongwe University of Agriculture and Natural Resources (Luanar) Vice Chancellor Emmanuel Kaunda said the Mega Farm One Stop Shop, located in area 26 near Kanengo, is set to revolutionize farming practices by offering comprehensive services to over 844 farmers who have been selected for this landmark project.
He said these farmers, each owning a minimum of 20 hectares, will receive a range of support services designed to facilitate their transition into successful commercial farming enterprises.
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“Luanar’s multifaceted involvement in this initiative will ensure that farmers have the opportunity to commercialize their operations and acquire the necessary skills and knowledge to thrive in the agricultural sector,” Kaunda said.
Meanwhile, the Ministry of Agriculture has said it will lobby for a minimum of K40 billion for consideration during this November’s Mid-term budget Parliamentary seating.
Recently President Lazarus Chakwera discussed with Afrexim Bank on mega farm funding which is expected to boost the food security and economy of the nation.
Through partnership with Afrexim bank, the government is to develop 50,000 hectares of arable land and facilitate crop production of rice, soya beans, maize and cotton.
