Add us as your preferred source on Google to see more of our content in Search.
Add to Preferred SourcesAt least 300,000 highly vulnerable Malawian families will benefit from a new US$125.4 million programme that aims to increase their productivity and strengthen their market access.
Agriculture is the backbone of Malawi’s economy. It accounts for 30 percent of GDP and 80 percent of foreign earnings, and it employs more than three-quarters of the active population.
However, half of all farmers cultivate less than one hectare, making it hard for them to produce a surplus for the market. This is compounded by the impacts of climate change, which contribute to the slow rate of poverty reduction.
To address these challenges, a financing agreement for the Transforming Agriculture through Diversification and Entrepreneurship Programme (TRADE) was signed by Gilbert F. Houngbo, President of the International Fund for Agricultural Development (IFAD), and Joseph M. Mwanamvekha, Minister of Finance, Economic Planning and Development of the Republic of Malawi.
Funding includes a $51.1 million loan and $18.9 million grant from IFAD and $20 million in co-financing from the OPEC Fund for International Development. In addition, $15.3 million is provided by the Government of Malawi, $11.7 million from the private sector and $8.3 million from beneficiaries themselves.
TRADE will help Malawi achieve the Sustainable Development Goals and contribute to improving the livelihoods of rural people. It will help develop value chains for seven commodities – groundnuts, soybean, sunflower, Irish potato, diary, beef and honey.
The programme will strengthen the capacity of smallholder farmers, organize them into producers’ organizations and promote partnerships with small and medium enterprises. It will also develop roads and other rural infrastructure.
At least 55 percent of vulnerable women and 50 percent of young people in the 11 districts covered by TRADE will benefit from programme activities.
Since 1981, IFAD has invested more than $336 million in 14 rural development programmes and projects in Malawi worth a total of almost $638 million. These interventions have directly benefited more than 2 million rural families.
Original source: IFAD
Published on 20 December 2019