Admarc unveils reform plan,to penetrate global market
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tate produce trader Agricultural Development and Marketing Corporation (Admarc) has unveiled an ambitious reform strategy that will prioritise agro-processing and value addition to capitalise on business opportunities on the global market.
Admarc chief executive officer Daniel Makata outlined the strategies in Lilongwe on Thursday during a high-level panel discussion held on the sidelines of the 2024 Malawi Agricultural Productivity and Commercialisation Conference.
This year’s conference, held under the theme ‘Transforming agri-food systems to generate wealth for all’ brought together officials and representatives from the Ministry of Agriculture, the donor community and the public sector.
Makata said the parastatal has already began adding value to maize by processing it into flour for the local market and plans are underway to revitalise the canning business the company had in Mulanje in the early 1990s.
He said: “We need to realise that we can make money by adding value to local products than by exporting the raw.
“For example, people grow maize to eat nsima, which means maize flour is an in-demand product. By processing maize, we can generate more revenue than just buying, storing and reselling maize.”
Makata, however, did not specify the timeline for the canning project.
In his presentation, Malawi Investment and Trade Centre chief executive officer Paul Kwengwere observed that value addition could catalyse import substitution save Malawi foreign exchange.
He said: “The problem is that if we don’t add value, we will be exporting maize and importing cornflakes
“If we prioritise value addition, we will put ourselves in a better position to reduce imports and boost exports.”
National Working Group on Trade Policy chairperson Frederick Changaya said in an interview that there is need for government to prioritise trade in value-added products to ease forex shortages in the medium to long-term.
The need for Admarc to penetrate the export market follow concerns over Malawi’s growing appetite for imports and dwindling export base.
The deficits arising from the growing trade balance, recorded at $1.68 billion (about K2.9 trillion) at the end of 2023, have put severe pressure on the country’s forex potential.
Admarc’s reform strategy, centred on agro-processing and value addition, offers a promising path for the parastatal to capitalise on international market opportunities and contribute to the country’s economic growth.
