Business and Finance

Fresh call for agriculture sector diversification

Fresh call for agriculture sector diversification

By Benadetta Chiwanda Mia:

Mwapata Institute has urged the authorities to fast-track the development of diversification strategies in the agriculture sector.

It says this will help improve access to finance among farmers.

A working paper published by the institute recently reveals that there has been a decline in diversification efforts between 2019 and 2024.

Similarly, commercialisation levels among small-scale farmers vary widely, ranging from 0 percent to 77 percent.

The study finds that, on average, farmers exhibit semi levels of commercialisation, with an overall increase from 27 percent in 2019 to 35 percent in 2024—indicating gradual progress toward market-oriented farming practices.

It highlights limited access to finance, high input costs, scarcity of land and lack of extension and technical advice among constraints to diversification in agricultural production and the commercialisation drive.

The institute emphasises that leveraging linkages among diversification, commercialisation and food security is essential for developing effective policies that support smallholder farmers.

Commenting on the issue, agriculture policy expert Tamani Nkhono Mvula said there was a need for value chain development for crops targeted under the diversification initiative.

Economist Marvin Banda highlighted the structural challenges farmers face, including low market access, financial constraints and infrastructure limitations among the limitations.

“If the nation is to achieve these goals, the import bill needs to reflect a heavy procurement of these machines for the entire agricultural process,” Banda said

He also stressed the need to establish a standardised supply chain that enhances both local and international market linkages.

In March this year, Agriculture Minister Sam Kawale announced that the government had ordered the purchase of

10 grain dryers to promote commercialisation and mechanisation in the country’s agriculture sector.

Kawale said this in Salima District following the handover of a grain dryer and six tractors to the Ministry of Agriculture. The Korean government has donated the items through their ambassador to Malawi Jyaeyung Park.