Macadamia factory feasibility study this year—Old Mutual

 Old Mutual Investment Group (OMIG) says the feasibility study of its macadamia cracking machine project will be completed this year as it targets to export value- added products by 2026.

OMIG managing director Mark Mikwamba said in an interview on Monday that its two macadamia ventures, Gala Investments in Mchinji and Jacoma in Kasungu are already exporting the produce but in raw form.

He said: “After some years of investment, we are now exporting macadamia to Europe and Asian countries.

“However, the volumes are not that much because as of now, we are in the process of strengthening the whole value chain through acquisition of a cracking machine that will enable us add value and probably boost our export revenue.”

Mikwamba said this is a new project and expects the feasibility study to be completed this year so that by 2025/26, they can set-up the machine.

The joint venture is expected to invest $20 million (about K35 billion) in the cracking machine, a project which has been hailed by the National Planning Commission and the World Bank as key to boosting the country’s exports.

OMIG secured a pari passu agreement from AGRI3 Fund, a blended finance fund providing partial risk guarantee and credit enhancement instruments, to support a $12.5 million (about K21 billion) loan to Gala Investments to support the company’s operations and expansion.

The World Bank has since said in its latest Country Economic Memorandum that Malawi, with 10 000 hectares (ha) could be among top 10 exporters of macadamia nuts globally through Gala Investments plans.

Reads part the bank’s report: “This increased yield will require continued support for cracking nuts and related infrastructure, livelihood alternatives for households around estates to deter theft and conflict and a stable macroeconomic policy environment that enables continued importing of materials needed for investment.

“This will help to ensure the ability of key value chain actors to engage with smallholder farmers.”

In an earlier statement, Gala Investments founder and chairperson George Tselingas said they believe the firm will “become a pre-eminent macadamia producer in Africa with the potential to become a globally recognised retail brand”.

The firm, which was established in 2021 and operates on 6 000ha with over 3 600ha of irrigable land across 12 estates in Lilongwe, has been securing funding to boost production and productivity on its farms.

National Planning Commission spokesperson Thom Khanje said in an interview that the initiative would complement Malawi 2063, the country’s long-term development plan which is anchored on boosting agricultural productivity and commercialisation.

He said: “National Planning Commission is aware that Gala Investments has ventured into large-scale macadamia nuts production and the venture in the shells processing enhances the investment into an end-to-end integrated venture that adds value to the whole line from farming to commercial utilisation of shells.”

Macadamia is expected to complement tobacco, the country’s main foreign exchange earner, in the generation of foreign exchange