International Fund for Agricultural Development (Ifad) has given Malawi a $30.9 million (about K54.1 billion) grant to support agricultural productivity, rural livelihoods and bolster economic resilience amid growing economic pressures.
Ifad vice-president Gérardine Mukeshimana announced the package yesterday on the sidelines of the 2026 African Development Bank (AfDB) Group annual meetings underway in Kentélé, Brazzaville, Republic of Congo.
Speaking in an interview after meeting the Malawi delegation led by Minister of Finance, Economic Planning and Decentralisation Joseph Mwanamvekha, Mukeshimana said $28.7 million of the package is additional financing under Ifad 13 to cushion cost overruns on infrastructure interventions under the Transforming Agriculture through Diversification and Entrepreneurship (Trade) programme.
vote of confidence.
| Jonathan Pasungwi
Mukeshimana said the balance of $2.2 million will support implementation of the Farm Inputs Subsidy Programme (Fisp) as part of a crisis response mechanism to lessen the impact of global economic shocks triggered by the Russia-Ukraine conflict and tensions in the Middle East following the US-Israel war on Iran.
She said Ifad remains committed to strengthening resilience among rural communities, particularly among women and young people affected by economic and climate-related shocks.
Said Mukeshimana: “We are aiming at increasing rural employment. especially for young people and women and also building sustainable resilience of rural communities because shocks and crises continue to come.
“So, we provide skills and capital to ensure that young people and women find employment in food systems because we realise that food systems create a lot of jobs.”
In an interview after the meeting, Mwanamvekha described the support as a strong vote of confidence from development partners in Malawi’s economic governance and reform agenda.
He said: “What this means for Malawians is that the relationship between the Government of Malawi and the donor community, especially Ifad, remains strong and productive.
“It also demonstrates the confidence that development partners have in the leadership of government, particularly under President Professor Arthur Peter Mutharika.”
The latest support adds to Ifad’s growing investment portfolio in Malawi’s agriculture sector as last October it pledged K5.2 billion towards Malawi’s national fertiliser programme aimed at boosting food production and improving productivity among smallholder farmers.
Ifad is also one of the key financiers of the Trade Programme which seeks to improve sustainable livelihoods in rural communities.
The programme rolled out on August 28 2020 and has total funding of $125.844 million (about K220.3 billion).
The new funding comes at a time Malawi continues to rely heavily on donor-backed agricultural interventions to strengthen food security, create jobs and improve resilience against climate shocks and rising commodity prices.
Mwanamvekha and Reserve Bank of Malawi Governor George Partridge are among about 3 000 delegates attending the five-day AfDB Group 2026 annual meetings, including African Heads of State, development partners, private sector leaders and civil society.
