Stakeholders in Malawi’s agricultural sector have stressed the urgent need for strategic research and investment in productive value chains to drive economic growth.
The remarks were made during a panel discussion on export opportunities and import substitution at the Malawi-European Union (EU) Investment Forum.
Speaking under the theme ‘Creating Sustainable Investment Opportunities: Strengthening EU-Malawi Economic Ties’, Mwapata Institute Research Fellow Christone Nyondo underscored the importance of focusing investments on high-potential value chains.
He highlighted findings from the Policy and Investment Prioritisation through Value Chain Analysis (PPVC), which identifies macadamia nuts, mangoes, and soya beans as leading options for export-led growth and import substitution.
“Studies indicate that macadamia nuts hold the greatest export potential,” said Nyondo, who has co-authored several research papers on value chain analysis. “Additionally, our mangoes offer a high comparative advantage as they mature faster.”
In a separate presentation, Malawi Mangoes head of finance Ben Munthali explained how the company’s mango value chain activities could transform the livelihoods of smallholder farmers.
“We anticipate that growers could earn $750 000 annually at full production, supplying raw materials to Malawi Mangoes,” he said. “Our conservative yield projections of approximately 5 200 metric tonnes could generate $5–7 million annually in export revenue.”
Munthali noted that the company’s expansion could create 620 new jobs in production and extension services while benefiting 3 150 farmers through a regionally and internationally certified value chain.
Satemwa Tea and Coffee Estates business and development manager Wouter Verelst said traditional value chains like tea and coffee still hold promise for revenue generation. However, he acknowledged several challenges, including rising competition from Kenya and Sri Lanka and difficulties in establishing joint ventures with European partners.
“There is a lifeline. We can focus on producing high-quality products for niche European markets,” said Verelst. “We must also reduce transport costs by consolidating shipments and establishing stock in Europe.”
A joint study by the International Food Policy Research Institute, Mwapata Institute and the Alliance for a Green Revolution in Africa (Agra) reinforced the forum’s discussions.
The study ranked macadamia nuts, pigs and mangoes as the top three value chains for market-led growth. In contrast, Malawi’s traditional crops, tobacco and maize, ranked 11th and 15th, respectively.
Nyondo stressed that the government must align its agricultural development objectives with value chains that offer the highest returns.
“To realise meaningful economic growth, we need to leverage research and insights to prioritise these high-potential areas,” he said.
