By Wezzie Gausi:
Smallholder Farmers Fertiliser Revolving Fund of Malawi (SFFRFM) has told the Parliamentary Cluster on Agriculture and Environment that the government’s failure to pay back K140 billion for the fertiliser it took in 1998 is compromising its operations.
SFFRFM is demanding the funds after the government took 89,000 metric tonnes of fertiliser for the starter-pack programme.
Addressing members of the cluster, SFFRFM Chief Executive Officer Richard Chikunkhuzeni said the company has the capacity to sell significant quantities of fertiliser if the fertiliser is made available—and timely.
However, he said, because of lack of working capital, the sales performance of the statutory corporation has been below par.
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“We would be glad if the government paid back the loan it owes us through] recapitalisation. For some time, the fund has been borrowing from commercial banks to finance the procurement of fertiliser.
“Interest rates are high and erode the margins that, ideally, the fund should be making on fertiliser sales. Gradually, this stunts the growth of the Trust Fund,” Chikunkhuzeni said.
Cluster Co-chairperson Sameer Suleman said problems that are rocking SFFRFM come from the Ministry of Agriculture, which he accused of overtaking the mandate of the institution.
“The mandate to buy and sell fertiliser on behalf of smallholder farmers is upon SFFRFM and it is worrisome that the Ministry of Agriculture has found itself controlling things, in terms of how this entity should run its affairs.
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“Indeed, it is high time the Treasury recapitalised the institution, bearing in mind that the government owes this entity. We really need to move at a fast rate if SFFRFM is to remain relevant in the country,” Suleman said.
SFFRFM has been closely involved in the procurement, distribution, storage and sale of Affordable Inputs Programme fertiliser since the current administration launched the programme in the 2020-21 agricultural season.
Meanwhile, Agriculture Minister Sam Kawale has said Suleman is entitled to his opinion.
“The important thing is that we will not lose focus but will continue to serve Malawians,” he said.
