Malawi’s agricultural sector is set for a significant boost, thanks to a new six-year project funded by the World Bank to the tune of $150 million (about K262 billion) .
The Southern African Trade and Connectivity Project seeks to transform the country’s agricultural competitiveness within the southern African region, targeting specific corridors across Malawi and Mozambique.
The project will also work to reduce trade costs and times, allowing Malawian agricultural products to reach regional markets faster and more efficiently.
Speaking in an interview on Monday, Minister of Transport and Public Works deputy director of policy and planning Charles Mtonga said the project goes beyond just logistics, but strengthening agricultural value chains, ensuring that agriculture produce reaches consumers in top condition and commands premium prices.
“This project will be a game-changer for Malawi’s agriculture sector,” he said.
Mtonga said there will be grants directed to develop value chains for the international market.
“We will target the agriculture sector in the initial phase, but there is a component to improve as we go along. The goal is to expand our export base,” he said.
Southern African Trade and Connectivity Project manager Hastings Ngoma said the project will tackle non-tariff barriers that hinder trade between Malawi and Mozambique.
He said the first step is to automate systems at the Ministry of Agriculture and Malawi Bureau of Standards.
Saind Ngoma: “We want to have an automated system to replace the manual system.
“If we can integrate these two departments through the use of an automated system, then we will be closer to reducing the inefficiencies caused by manual processes.”
He said streamlining these processes will create smooth flow of agricultural goods across borders.
The project will see the automation of systems within the Ministry of Agriculture and the Malawi Bureau of Standards, further boosting efficiency within the agricultural sector, according to the project concept.
Reads the concept note in part: “The Ministry of Transport and Public Works will spearhead the project’s implementation, working closely with 14 other government ministries, departments and agencies.
“This collaborative effort underscores the government’s commitment to harnessing Southern African Trade and Connectivity Project’s potential to transform the country’s agricultural landscape.”
It says financial grants will be specifically directed towards developing robust value chains for international markets, with agriculture taking centre stage in the initial phase.
The project’s focus on agriculture reflects the sector’s critical role in Malawi’s economy, with data showing that agriculture contributes about 22 percent to the country’s gross domestic product, according to the Malawi Government Annual Economic Report 2024.
The project’s long-term goal is to leverage the value chains to expand the country’s export base of agricultural products.
The project will promote the use of small and medium-sized enterprises to boost agricultural production, according the concept note.
This approach, built on regional integration, aims to create a ripple effect, enhancing productivity for all stakeholders from private sector players to smallholder farmers and cross-border traders, reads the note.
