By Kingsley Jassi:
The National Economic Empowerment Fund (Neef) says it aims to revolutionise Malawi’s agricultural sector through a K150 billion inputs loan programme targeting 400,000 smallholder farmers, potentially replacing the Affordable Inputs Programme (AIP), which critics have long described as inefficient.
Neef envisions spearheading economic stability through increased agricultural productivity while addressing persistent supply-side challenges that have plagued the economy.
The government has allocated K270 billion for both the Neef and AIP programmes this year, with Neef projecting that maize production could reach two million metric tonnes (mt) if all targeted farmers receive inputs.
This production target represents a big step toward achieving the national food security target of 4.5 million metric tonnes and thus, economic stability.
Speaking during a fertiliser distribution exercise, Neef Chief Executive Officer Humphrey Mdyetseni expressed confidence that the loan programme could develop into a self-sustaining fund supporting smallholder commercial farming, effectively replacing the current AIP model.
“The programme focuses on three impact areas, primarily food security. Successfully managing food security will stabilise the economy by lowering inflation caused by food supply challenges. Long term, we expect farmers to move away from dependence on subsidised inputs,” Mdyetseni said.
However, it has transpired that the programme’s implementation is encountering challenges, such as Treasury’s erratic cash flow, which has slowed progress, with only 30,000 farmers receiving inputs to date.
Mdyetseni said that to address these challenges, Neef has established a strategic partnership with the Smallholder Farmers Fertiliser Revolving Fund of Malawi for direct fertiliser distribution instead of cash disbursements.
“The release of 10,000 bags of fertiliser on Monday has brought some boost to catch up with time and we hope for continued availability of the inputs until the end of the month, as the planned cut-off point,” Mdyetseni added.
In an interview, agriculture policy expert Tamani Nkhono-Mvula, while supporting the policy shift, mentioned the importance of proper beneficiary targeting.
“Using Neef brings business sense to farming. However, beneficiary selection must ensure production capacity for loan repayment,” Mvula said.
Industry experts are calling for comprehensive sector reforms, including enhanced mechanisation and extensive irrigation infrastructure development, particularly in light of increasing climate change impacts.
Mwapata Policy Institute Executive Director William Chadza said there is a need for expanded private sector involvement across the agricultural value chain.
“The private sector could facilitate input access through prepaid or credit models. The government should collaborate with existing mega-farms to boost food and commercial crop production.
“Strengthening commercial supply and distribution networks for essential inputs such as seeds and pesticides is essential,” Chadza said.
Despite channelling substantial resources from the national budget into agricultural development, government initiatives have yet to achieve the desired productivity increases.
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