The Malawi Government has signed an additional financing agreement to support the Agricultural Commercialisation (AGCOM) Project phase two, securing $45 million approximately K80 billion from the World Bank-administered Multi-Donor Trust Fund.
The funds, contributed by the European Union (EU), Ireland, Norway, and Government of Flanders, will bolster AGCOM’s second phase, focusing on increasing agricultural productivity and commercialisation.
Speaking at the signing ceremony, Minister of Finance and Economic Affairs, Simplex Chithyola Banda, expressed the government’s delight over the development, describing it as a major step towards transforming Malawi’s agro-based economy.
“This financing aligns perfectly with our national strategy, ATM, which prioritises agriculture as the foundation for commercialisation and economic growth. Our shift from subsistence to commercial farming is crucial in enhancing productivity and creating more opportunities for farmers,” said Chithyola.
The Finance Minister emphasised that agriculture accounts for a significant share of Malawi’s economy and that support from development partners eases the financial burden on the government. He further urged implementing agencies to ensure transparency and accountability in utilising the resources.
In his remarks, World Bank Country Manager, Firas Raad, echoed similar sentiments, highlighting that AGCOM2 builds on the success of AGCOM1 and aims to scale up activities that promote value addition and exports.
“This funding will enhance productivity, develop new value chains, and expand agricultural commercialisation. Agriculture is a key driver of economic growth, income generation, and poverty alleviation. The World Bank and our partners are committed to supporting Malawi in this journey,” said Raad.
The additional funding will also support digital advancements in the sector, including improved access to information for farmers and the integration of digital systems within the Ministry of Agriculture.
According to Minister of Agriculture Sam Kawale whose ministry will be implementing the project, the AGCOM2 initiative stands as a beacon of hope for farmers and agribusinesses, offering the potential to unlock economic growth and strengthen food security.
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