IFC moves to support macadamia nuts value chain

The International Finance Corporation (IFC), the private sector investment arm of the World Bank, has signed an agreement with Signature Agri Investment, an agriculture investment firm, to develop the macadamia nuts value chain.

In an interview on Thursday, IFC regional director Mary Porter Peschka said the agreement will create a framework for the two institutions to cooperate on value addition and boosting investment in the agricultural sector.

She said: “The agreement is two-fold. One, it will support the development of a processing plant for macadamia nuts so we can keep value addition in the country, helping to generate jobs and other economic opportunities.

“We are also doing a wider initiative to set up an agri-investment platform to mobilise institutional investors into the agricultural sector in Malawi.”

Signature Agri Investment will implement the project. The firm already completed its investment in Gala, a local firm with over 6 000 hectares of farmland.

The firm is working to increase its developed land from 1 400 hectares to 2 000 hectares.

Minister of Trade and Industry Sosten Gwengwe commended the agreement, saying it will help the country to diversify from traditional exports and create opportunities for local farmers to sell to anchor farms.

Secretary to the Treasury Betchani Tchereni said the agreement is in sync with government’s initiatives to drive value addition through private sector-led partnerships.

“If we add value and minimise damage because of mechanisation, we will get more in terms of export earnings and tax revenues,” he said.

Malawi is the third largest exporter of macadamia nuts in Africa and the eighth globally, according to the World Bank.