African Development Fund to enhance agri sector and climate resilience in Malawi

The allocated funds will be instrumental in establishing a farmer registration module and launching a national agricultural management information system.

On May 15, 2024, the Board of Directors of the African Development Fund greenlit a $22.7 million budget support grant for Malawi. This funding aims to bolster the implementation of a national program focused on reforming the agricultural sector and bolstering resilience to climate change.

Dubbed the Agricultural Productivity and Marketing Program, the initiative is poised to catalyze economic growth and ensure food security across Malawi. It encompasses endeavors to enhance efficiency, transparency, and accountability in agricultural sector expenditures while reinforcing disaster preparedness and climate resilience measures.

The allocated funds will be instrumental in establishing a farmer registration module and launching a national agricultural management information system. Key reforms include enhancements to public financial management systems, particularly regarding agricultural sector contracts.

Macmillan Anyanwu, African Development Bank Country Manager for Malawi, stressed the importance of this timely assistance. "This budget support operation is timely, as it comes when Malawi is facing unprecedented macroeconomic challenges. We encourage the Government to ensure effective implementation of the program to help tackle some of the binding constraints to commercialization of agriculture and increasing agricultural productivity."

This initiative strategically aligns with endeavors to stimulate private-sector investments in agriculture, aiming to enhance productivity, value addition, and export capacity within specific value chains.

The program will be implemented by Malawi's Ministry of Finance and Economic Affairs and the Ministry of Agriculture. The anticipated benefits extend to private sector entities and Malawians, particularly those engaged in the agricultural sector.