By Brenda Kayo:
Chairperson for the Parliamentary Committee on Trade and Industry Paul Nkhoma has commended National Smallholder Farmers Association of Malawi (Nasfam) for exercising fiscal prudence with donor funds.
Nkhoma raised the sentiments on Saturday when members of his committee and members of the Parliamentary Committee on Tourism visited Nasfam Commercial (Nascomex) in Area 28, Lilongwe.
Nascomex is a commercial arm of Nasfam and is dedicated to agro-processing and value addition.
- Advertisement -
During the tour, the legislators assessed how the organisation was utilising financial resources and strides made in improving the socio-economic status of its members.
- Advertisement -
Nkhoma said there was a need for farmer organisations to ensure responsibility and prudence in the utilisation of donor funds, stressing that this was key to the attainment of economic independence.
“We are pleased with how Nasfam is utilising funds, in line with the government agenda of reducing cases of donor dependence. We are particularly impressed with the significant strides Nasfam has made through the funding boost of K2.5 billion from Malawi Agricultural and Industrial Investment Corporation [Maiic],” he said.
Nkhoma observed that the funds had enabled Nasfam to process more products and acquire new machinery to add value to crops that smallholder farmers produce.
In his remarks, Maiic acting Chief Executive Officer (CEO) Lloyd Banda said equity finance interventions had been key to Nasfam’s growth.
- Advertisement -
“We, as Maiic, have a mandate to support the growth of industries and, as such, we provided working capital to Nasfam,” Banda said.
On her part, Nasfam CEO Betty Chinyamunyamu said funds that her organisation got from Maiic has had a positive impact on member farmers.
Chinyamunyamu said the organisation was working with more than 130, 000 smallholder farmers in 22 districts and was producing 6, 000 metric tonnes (mt) of rice and 10, 000-plus mt of maize.
She disclosed that groundnut production remained below 70 percent, but assured the parliamentarians of her organisation’s commitment to continue contributing to efforts aimed at boosting food security in the country.
“Let me take this opportunity to propose that MAIIC funding be increased and should be set to be repaid after seven years to allow for further investments in food processing machinery.
“In terms of food security, we, as Nasfam, have the potential to buy a lot of farm produce and collaborate with the government in improving the food security situation in the country,” Chinyamunyamu said.
