Minister of Finance and Economic Affairs Simplex Chithyola Banda has signed a $45 million (about K78 billion) additional grant to support the Malawi Food Systems Resilience Programme (Agcom II).
The funds will help pilot initiatives to reform the Affordable Inputs Programme (AIP) and expand efforts to reach more beneficiaries, among others.
deal. | Leonard Masauli, Mana
An extra $16 million from the Global Umbrella Trust Fund will be provided over the project period, raising total funding for Agcom II to $326 million.
The programme, backed by the World Bank, also includes support from a multi-donor trust fund financed by the European Union, Ireland, Flanders, and Norway.
Speaking during the signing ceremony in Lilongwe on Wednesday, Chithyola Banda stressed the need for accountability, saying government will use the Public Finance Management Act to ensure funds are used properly.
He said: “We can only be entrusted with more money if we are transparent. The funds will enhance agricultural value, create off-farm jobs, support land reform, improve agricultural policies, and strengthen food systems resilience.”
In his remarks, World Bank country manager Firas Raad said initiatives like Agcom II have the potential to help Malawi break free from food insecurity, improve access to foreign exchange, and create jobs.
“These investments will also help position the sector for greater development impact by driving up exports, generating greater foreign exchange, improving fiscal revenues, and creating much-needed jobs for the country’s burgeoning youth population,” he said.
Taking his turn, EU Ambassador Rune Skinnebach cited ongoing partnerships, including a 25 million euros agribusiness fund and the new 26.7 million euros Uchi programme (Greening and Growing Malawi) to link farmers to markets.
Since its launch in 2023, Agcom II has disbursed 17 percent of its initial $265 million budget, provided grants to 76 farming cooperatives, and registered 3.4 million rural households, among others.
