The second phase of the Agricultural commercialisation (Agcom) project has received a major boost after the World Bank almost tripled its financial commitment.
The World Bank pumped $95 million into Malawi’s flagship programme Agcom 1 aimed at transforming the agriculture sector.
Speaking on Tuesday during the launch of the Katunga-Maseya Cooperative Mega Farm in Chikwawa District, World Bank Country Manager Hugh Riddell said the Britton Woods institution’s board has approved funding which will now be at $265 million.
“Through the coming scale up process, we expect to double these achievements, which also include support to secondary cooperatives, SMEs [small and medium enterprises], off takers and infrastructure development.
“This flagship project aims to irrigate about 43,000 hectares for agribusiness development. It is exciting to see the substantial progress that is being made, including on the canal itself, the mobilisation of farmers, the consolidation of substantial land blocks and the development of business plans,” he said.
Minister of Agriculture Sam Kawale described the development as exciting in the transformation of the agriculture sector.
“This is an indication that the bank has huge trust in how we are implementing the project. They have done three times more.
“The second phase begins this year and it means that we are going to scale up our scope which will in the end see more families benefitting, Kawale said.
Through the project, farmers under cooperatives have been accessing funding for growing their business.
The Katunga-Maseya cooperative has since upgraded as it will be operating the 1069-hectare mega farm by engaging in sugarcane production after receiving K5.3 billion funding from Agcom.
The funds will enable the farmers to produce over 96,000 metric tonnes of sugarcane per year with a ready market at ethanol producers Press Cane Limited.
This will see the cooperative generating about K4 billion in revenue.
