Agro investments key to boosting output

The Reserve Bank of Malawi (RBM) says investments in irrigation projects, mega farms and animal production are key to boosting agricultural output, but experts have warned that this could take time to bear positive results.

In the latest Financial and Economic Review, the central bank, which has put the agriculture sector growth at 0.7 percent this year, expects the sector to offset the damage caused by El Nino and rebound to a 4.3 percent growth in 2025.

Data from the Ministry of Agriculture indicates that erratic weather patterns induced by El Nino affected nearly half or 44.3 percent of the national crop area and left more than two million households facing acute food shortages.

But experts have warned that while promising, the mega farms are not developing fast enough to ensure full-scale agriculture commercialisation and industrialisation

In an interview yesterday, Mzuzu University agriculture economist Christopher Mbukwa said less than one percent growth in the agriculture sector is insufficient to overcome El Nino losses and drive economic development.

“Mega farms developments are encouraging, but more needs to be done,” he said.

Mbukwa said there is need for immediate investment in short-term irrigation projects to bridge potential food gaps caused by El Nino.

He called for long-term investments in irrigation infrastructure and promoting alternative value chains such as soya beans and groundnuts.

Lilongwe University of Agriculture and Natural Resources economist Horace Phiri said much as mega farms are critical to agricultural output, they should just complement and not replace existing smallholder farmers and estate production.

He said: “El Nino losses are still a concern. Mega farms are a government concept, but private sector involvement is crucial for their success.

“The government should create policies that ensure profitability while the private sector needs to step up and provide services such as credit, extension and marketing.”

Phiri cautioned that sluggish private sector participation could hinder the rapid growth needed from mega farms if the government shoulders the entire burden.

Officials from the Ministry of Agriculture were not readily available to provide information on how many mega farms are active and how much they expect to produce as part of agriculture commercialisation and industrialisation.

But Ministry of Agriculture Principal Secretary for irrigation services Geoffrey Mamba said in an earlier interview the ministry will use a $10 million financial package from the Department of Disaster Management Affairs to grow additional crops.

“We expect to engage 26 commercial irrigation farmers to cultivate 3 878 hectares of land. We are also expecting to support 200 farmers with at least 20 hectares of farmland,” he said.

The Ministry of Agriculture is expected to support farming in 7 878 hectares of land to offset the damage caused by El Nino and the subsequent disruption to the agricultural sector.