Malawi Government and regional experts have called for prioritised spending and strengthening of oversight in agriculture programmes to achieve productivity, boost exports and create jobs for the youth.
Speaking in Lilongwe on Friday during the opening of a regional policy dialogue on value for money in agricultural value chains, Ministry of Finance, Economic Planning and Decentralisation Principal Secretary Patrick Zimpita said agriculture, which contributes about 25 percent to the country’s gross domestic product (GDP), remains the backbone of the country’s economy and requires smarter investment.
He said: “We are transitioning from broad subsidies to targeted investments that directly support agricultural transformation.
“Over 70 percent of Malawians are below 35. These young people must be productively engaged in agriculture if we are to ensure food security and economic growth.”
Zimpita said new public financing instruments, including the National Economic Empowerment Fund and mega-farm initiatives, are intended to unlock private capital and ensure youth have access to skills, finance and markets.
The policy dialogue, convened by the Collaborative Africa Budget Reform Initiative (Cabri), brought together officials from the ministries of Finance and Agriculture from across the region, alongside civil society and research institutions, to address persistent weaknesses in agricultural financing and value chain governance.
In an interview, Cabri public finance management specialist Winnie Mageto said Malawi, like many African countries, struggles with fragmented coordination between key ministries overseeing the agriculture sector.
“Ministries of Finance and Agriculture often operate in silos. There is duplication of duties, low budget execution and limited private sector engagement while too much spending is directed towards input subsidies,” she said.
Ministry of Agriculture, Irrgation and Water Development data show that Malawi has spent K1.2 trillion on farm input subsidies over the past year with nothing to show for it.
Mageto said the dialogue seeks to help governments implement performance-based budgeting, improve fiscal discipline and ensure that resources reach smallholder farmers and agribusiness operators efficiently.
“This dialogue brings together the right actors to identify what has been missing whether governance, accountability or prioritisation so that solutions deliver real impact for farmers and markets,” she said.
A representive of the Kenya Government Peter Iwoko said African governments need to focus investments on value chains that drive transformation.
“We are looking at transitioning to a value-chain approach where you prioritise crops that can transform the country and focus your resources there,” he said.
Iwoko advised Malawi to balance food security needs with market-driven diversification.
“If maize is core for food security, then you must focus on it. But governments also need mechanisms that make credit accessible when farmers need it not after the season has passed,” he said.
Policy analysts say Malawi spends more on agriculture, but continues to face food insecurity and low export competitiveness due to weak implementation, delayed financing and minimal value addition.
The World Bank projects that reforms on improving spending efficiency, irrigation expansion and agro-processing can unlock faster productivity growth and create more resilient rural incomes.
In the discussions that continued through Thursday, delegates recommended reforms to strengthen oversight, reduce fiscal leakages and channel more resources into high-impact agricultural investments.
Malawi’s economy is agro-baased with 25 percent of its gross domestic product coming from the sector that brings in more than 70 percent of foreign exchange earnings.
