The Minister of Trade and Industry, Sosten Gwengwe, has urged Small and Medium Enterprises (SMEs) to adopt innovative practices and think creatively to break the status quo.
Speaking at the official opening of the AGCOM-SME-Matching Grant Window Stakeholders Briefing of the Agriculture Commercialization (AGCOM) project at Sunbird Lilongwe Hotel, Gwengwe emphasized the potential for SMEs to explore growth in various value chains under this strategy.
Gwengwe highlighted the downside of SMEs focusing on sole proprietorships, which often leads to limited growth. He stated, “Going solo might seem lucrative, but it limits your capacity and financing that comes with partnerships or business alliances. I urge you to embrace partnerships with both local and international investors. This will ensure access to ready markets and enhance your ability to meet quality and volume demands.”
Gwengwe pointed out that while Malawi is often seen as a ‘Soya Bean or Nandolo Exporting Economy,’ it is time for SMEs to venture into other value chains, such as technology and car manufacturing. The Ministry is prepared to support these endeavors.
He also praised AGCOM for its efforts to encourage producer-off-taker arrangements to foster commercialization and for implementing measures to address financial access constraints through matching grants and partial credit guarantees.
Dr. Feddie Nakhumwa, National Program Coordinator at AGCOM, noted that the program aims to transform smallholder agriculture from subsistence to commercial by linking Producer Organizations (POs), service providers, and off-takers in a value chain, a concept known as a Productive Alliance (PA).
The AGCOM-SME-Matching Grant Window offers USD 60 million (almost 100 billion Kwacha) for Micro, Small, and Medium Enterprises (MSMEs) in the country.
