Mega farmers contracted through the Mega Farms Unit have so far repaid only 21.2 percent of their loans, leaving K55.8 billion outstanding.
Director of Mega Farms Henry Msatilomo told Parliament’s Government Assurances and Public Reforms Committee on Wednesday that just K15 billion has been recovered.
He appeared alongside Ministry of Agriculture officials led by Principal Secretary Erica Maganga.
The loans date back to the 2023/24 farming season, when 212 farmers cultivated 8,092 hectares and produced 23,000 metric tonnes of maize. In 2024/25, the number of contracted farmers rose to 855, who cultivated 43 122 hectares and produced 88 000 metric tonnes.
Government later shifted strategy, engaging five institutions of Lilongwe University of Agriculture and Natural Resources (Luanar), Malawi Defence Force (MDF), Malawi Prison Service (MPS), the Greenbelt Authority, and the Shire Valley Transformation Programme to cultivate 2 087 hectares and produce 6 811 metric tonnes.
Msatilomo said the programme was financed with K57 billion, plus accrued interest of K13 billion, bringing the total to K70 billion. He added that input suppliers are still owed K27.9 billion out of K48 billion worth of inputs acquired.
He attributed slow recovery to legal challenges and lack of collateral: “Court injunctions by some farmers affected recovery actions.”
The department has since engaged seven debt‑collection firms.
Mega Farmers Union chairperson Vasco Madhlopa confirmed his members owe government.
“We obtained an injunction and it was vacated. We are meeting in October to map the way forward.”
Agriculture expert Leonard Chimwaza said inadequate due diligence undermined the programme.
“Moving forward, there is need for a business‑minded approach rather than the free‑for‑all the programme has been known for.”
Mwapata Institute executive director William Chadza urged reforms to improve targeting, collateral requirements, and links to off‑takers.
“Better targeting of beneficiaries, insurance cover, and assignment of proceeds to lenders are essential to reduce bad debts,” he said.
Governance expert Willy Kambwandira blamed politicisation of the programme.
“This is a clear warning that the Mega Farms programme requires fundamental reform, not cosmetic adjustments. Public money cannot continue financing models that lack accountability, viable markets and credible repayment mechanisms,” he said.
Despite the investment, food insecurity remains high. About four million Malawians (22 percent of the projected 2025/26 population) faced hunger, forcing government to import 200 000 metric tonnes of maize from Zambia.
