Project targets value-addition, off-takers
The World Bank-funded Agriculture Commercialisation Programme says it will target enterprises that are value-addition and production-oriented in its window three of financing to link to the Malawi 2063 First 10-Year Implementation Plan (MIP 1).
In a document calling for concept notes for matching grant consideration, the $335 million (K586.5 billion) programme targets special small and medium enterprises (SMEs) capable of improving value addition and industrialisation in line with the country’s long-term development plan.
Signed by Agcom national project coordinator Teddie Nakhumwa, the document says apart from window three, window one is targeting producer organisations that are accessing the programme grants for the first time .
He said window two focuses on producer organisations that have benefitted from Agcom I that can demonstrate high volume to sustain value addition.
Nakhumwa said the three disbursement windows that include production, value addition and off-taker financing have respective ceilings of $150 000 (about K263 million), $300 000 (about K525 million) and $500 000 (about K875 million.
“This call for concepts is targeting SMEs such as off-takers, anchor farmers, aggregators, processors and exporters who are working with smallholder farmers to increase production, improve quality and enhance value addition,” he said.
The matching grants are coming at a time Malawi is implementing the National Export Strategy (NES II) which aims to boost the share of exports in the gross domestic product to 20 percent by 2026.
According to the NES II, Malawi aspires to increase exports of ‘Made in Malawi’ goods and services to the regional and global marketplace; improve export readiness and international competitiveness of the country’s industries, enterprises and products.
In an interview on Tuesday, National Planning Commission communications specialist Thom Khanje said the programme provides funding for realisation of the country’s development aspirations.
“This is important as it provides support, including funding, towards the realisation of the Malawi 2063 pillar of agricultural productivity and commercialisation which also feeds into the pillar of industrialisation through supply of raw materials,” he said.
In a separate interview, agriculture expert Zachary Kasomekera, who is also Lilongwe University of Agriculture and Natural Resources board chairperson, said this could achieve value addition in agriculture which is critical to wealth creation and import substitution.
Agcom phase one helped about 360 cooperatives, benefited 75 000 households and established 107 factories nationwide.
The programme also distributed about 5 000 agriculture machinery and constructed 260 warehouses and aggregation centres.
