Economists have welcomed the World Bank Group’s newly launched AgriConnect initiative as a potential game-changer for smallholder agriculture, saying it is well-aligned with Malawi 2063 (MW2063), the country’s long-term development plan.
However, the economists have also cautioned that the initiative’s success will depend on sustained investment in infrastructure, land reforms and private-sector-led financing to ensure lasting impact.
In an interview on Wednesday, Lilongwe University of Agriculture and Natural Resources Centre for Agricultural Research and Development director Innocent Pangapanga-Phiri said the initiative closely mirrors Malawi’s national priorities under MW2063, particularly its emphasis on agricultural commercialisation and diversification.
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He said: “This initiative supports Malawi’s strategic shift from subsistence to commercial agriculture.
“For too long, the country has relied on tobacco. AgriConnect presents an opportunity to diversify into high-value crops such as legumes that can drive export earnings and create jobs.”
Pangapanga Phiri said the programme’s success will depend on addressing deep-rooted constraints that have historically limited smallholder farmers’ access to finance.
Mwapata Institute research fellow Christone Nyondo said in an interview on Wednesday that AgriConnect’s financing model can improve agricultural lending if properly implemented.
“The partnership between government and commercial banks will help de-risk agriculture, making credit cheaper and more accessible for farmers,” he said.
Nyondo said that strengthening farmer cooperatives could also improve credit discipline, emphasising that when farmers work in groups, they reduce transaction costs and default risks through peer accountability.
He said coordinated investments in irrigation, mechanisation and value addition coupled with stronger land governance and fiscal discipline can help to turn Malawi’s smallholder farmers into globally competitive agribusiness players.
The World Bank unveiled the $14 billion (about K25 trillion) initiative during its annual meetings in Washington, United States, pledging to double agribusiness commitments to $9 billion (about K16 trillion) annually by 2030 and mobilise an additional $5 billion (about K8 trillion) from partners.
In a statement, World Bank President Ajay Banga is quoted as having said that the initiative seeks to “scale what works” by supporting countries to strengthen rural infrastructure, enhance value chains and de-risk agricultural investment.
“Partnerships are what unlock agriculture’s potential,” Banga said, highlighting the need for collaboration between governments, financial institutions and farmers.
The programme seeks to transform small-scale farming into a driver of sustainable growth, jobs and food security by improving access to finance, markets and climate-smart technologies
