National Bank of Malawi (NBM) plc has injected K90 million towards the establishment of banana demonstration plots in Thyolo and Mulanje districts to revive large-scale commercial production of the crop.
Speaking when he announced the financing deal and the signing of a memorandum of understanding (MoU) with the Centre for Agricultural Transformation (CAT) in Lilongwe on Friday, NBM plc chief executive officer Harold Jiya said Malawi is currently importing approximately 20 000 metric tonnes (MT) of bananas annually costing about $4 million (about K7.1 billion).
He said the dependence on imports not only constrains the country’s economy and foreign currency, but also reflects the gap in local production.
Said Jiya: “Mulanje and Thyolo were dominant in banana production in the 1980s and 1990s.You might not know this, but the banana bunchy top virus, which struck in 2004, reduced banana plantations significantly in these districts, leading to reliance on imports.”
He said the reduction of banana output in the two districts brought in dependency on handouts.
“It is our hope that the support to these demonstration plots will help to build these communities and eventually these districts will be able to produce more bananas,” said Jiya.
He said the main objective of the demonstration farms, also known as smart farms, is to revive banana farming in these two districts on a commercial scale and further build up communities to be self-reliant.
Said Jiya: “We not only affirm our support to the project, but also to lay the foundation for sustainable growth that empowers our farmers, uplifts their families and revitalises the nation’s economic fabric.
“Let me add that this partnership stems from the recognition of a critical challenge that has affected Malawi’s agricultural industry for two decades.”
CAT executive director MacLeod Nkhoma described the partnership with NBM plc as a significant milestone that will support smallholder banana farmers.
He said through the partnership, CAT will provide technical agricultural support to help farmers boost productivity through the demonstration plots in the two districts, with each district having one smart farm.
“The bank, in turn, will provide crucial financial backing to further this effort. This partnership between Land O’Lakes Venture37-CAT and the National Bank of Malawi is a clear demonstration of our shared commitment to improving banana production and productivity in Mulanje and Thyolo districts,” he said.
Nkhoma said land for the demonstration plots in both districts has been secured and they are ready to begin work this growing season.
Land O’Lakes Venture37-CAT seeks to transform the country’s agriculture systems and the lives of Malawian smallholder farmers by giving them access to inclusive innovation in agricultural science and technology through a range of commercialisation channels.
