Malawi could earn $400m from rice—Mtalimanja

Mtalimanja Holdings Limited (MHL) has said Malawi has the potential to earn about $400 million (K293 billion) per year if it ramps up production since the crop is on high demand on the global market.

Figures from the Ministry of Agriculture, Irrigation and Water Development show that Malawi produces 360 000 tonnes a year, but has potential to produce 2.5 million tonnes.

In an interview, David Kamchacha, managing director of MHL, a diversified agricultural firm, said if the farmers produce 100 000 tonnes and it is bought at K250 per kilogramme (kg), they can earn over K50 billion.

“This country has huge potential and Malawi can be transformed beyond recognition,” he said, adding that Malawi’s rice is on high demand in South Africa, Zimbabwe, Botswana, Europe and Asia.

He was speaking in Lilongwe on the sidelines of signing a memorandum of understanding (MoU) with Export Development Fund (EDF), a financing entity that targets exports, and AHL Commodities Exchange (AHCX) to provide financing to 1 000 farmers to grow rice for the export market.

The MoU will see EDF helping Mtalimanja Holdings with financing while AHCX will provide the markets.

Kamchacha said the Democratic Republic of Congo (DRC) is currently looking for two million tonnes of rice per year, while Bostwana wants 70 000 tonnes.

EDF managing director Rodrick Wiyo said the agreement was reached following the realisation that rice growers are not fully empowered and integrated in the global value chains, resulting in them not benefiting.

“The mandate of the EDF is to intervene in various sectors of the economy to grow exports. We support the areas identified by the National Export Strategy [NES] and rice is one of the strategic crops that has the potential to generate foreign exchange for the nation,” he said.

AHCX general manager Davis Manyenje, whose institution has been tasked to identify markets, said the MoU is a move in the right direction because structured markets can help farmers generate more revenue.

“This country has huge potential to export more rice since we provide structured markets,” he said. n