The United States (US) Government has unveiled a $44.6 million (about K50 billion) partnership to boost Malawi’s economy through enhanced groundnuts production.
US Agency for International Development (USAid) deputy administrator Isobel Coleman, who is on a two-day visit to Malawi, made the announcement when she launched the partnership with agro-based company Pyxus in Lilongwe on Thursday.
She said the deal will see USAid and Pyxus, a Malawian-registered US company, collaborate in boosting groundnut production and processing, and support the livelihoods of smallholder farmers.
Said Coleman: “Agribusinesses across Africa are the continent’s largest employer and economic engine, and the key to moving away from subsistence agriculture towards a commercially sustainable industry that is critical for lifting people out of hunger and poverty.”
The $44.6 million investment includes $14.6 million (about K16 billion) from the US and up to $30 million (about K33 billion) from Pyxus, according to a USAid press release.
Pyxus managing director Ronald Ngwira said the partnership will strengthen steps towards achieving the Malawi 2063 (MW2063), the country’s long-term development strategy.
He said: “Malawi is also at a point of change. MW2063 recognises the need for private investment, capacity, and knowledge.The challenge is too big to work in isolation.”
Coleman is in Malawi to reinforce the US Government’s commitment to advancing private sector-led inclusive economic growth.
During her visit, she is engaging with key Malawi Government officials and a range of partners and stakeholders to gain a deeper understanding of the macroeconomic challenges affecting the country, according to the USAid press statement.