World Bank has pumped in $95 million (K69 billion) to commercialise agriculture sector in the country.
According to a press statement released by World Bank, the funds will boost the quality and quantity of various agriculture products for domestic and export markets using credit for Agriculture Commercialisation Project (AGCOM).
The project will support 70,000 farmers and 300 producer organisations in order to create conducive environment for farmers and agro-business to operate in the project.
Under the project, last-mile infrastructure such as feeder roads and electricity as well as agro-business reforms will be supported while the warehouse receipt system will be strengthened.
“Beneficiaries of the project are various value chain actors, including producers (farmers and farmer producer organizations), buyers (processors, retailers, exporters, and aggregators), and financial institutions that will be lending to the agribusiness sector in the country,” says the statement.
The project will also ensure that youth and women are well represented in its interventions and will have national coverage.
Valens Mwumvaneza who is World Bank Task Team Leader for AGCOM says the project will help develop Malawi’s productive base of farm and agribusiness products to foster export competitiveness and economic empowerment.
“We expect this project to catalyse and strengthen the role of commercial agriculture in turning around Malawi’s economic fortunes.”
AGCOM, whose funding is from the World Bank’s International Development Association (IDA) is expected to close in 2023. It will be implemented under the joint leadership of the Ministry of Agriculture, Irrigation and Water Development and the Ministry of Industry, Trade and Tourism.
IDA was established in 1960 and it helps world’s poorest countries by providing grants and low to zero-interest loans for projects and programs that boost economic growth.