The Malawi Government has secured a USD 45 million (MK80 billion) grant from the World Bank to fund Phase 2 of the Malawi Food Systems Resilience Programme under the Agricultural Commercialisation (AGCOM) project. The grant is supported by Norway, Ireland, the European Union, and the Government of Flanders.
The agreement was signed on Wednesday at Capital Hill in Lilongwe, following the success of AGCOM Phase 1, which focused on enhancing food system resilience and preparing the country for food insecurity. World Bank Country Manager for Malawi, Firas Raad, said the funding aims to increase food system resilience and improve crisis response capabilities in Malawi.
Raad explained that the additional funding would scale up existing activities from Phase 1 and introduce new initiatives aimed at boosting productivity and driving economic growth. “This support will continue to promote agricultural commercialization and improve food security,” he stated.
Malawi’s Minister of Finance, Simplex Chithyola Banda, called the grant a significant boost for the country’s agricultural sector. He assured that the government would ensure the funds are effectively utilized in line with the Public Financial Management Act. “This project will commercialize agriculture and help over 100,000 farmers,” Banda said.
Minister of Agriculture, Sam Kawale, thanked the World Bank and donors for their support, stressing the importance of the project in addressing climate change challenges. Kawale added that the first phase had empowered over 60,000 farmers and increased yields by more than 40%. Phase 2 will expand climate-smart irrigation and enhance market access for farmers.
Kawale also emphasized the importance of accountability and real-time monitoring to ensure funds are used effectively. The Ministry of Agriculture plans to partner with the private sector, including banks, to provide farmers with affordable loans to help transform agriculture into a commercial sector.
The AGCOM Phase 2 project will benefit over 100,000 households, or approximately 700,000 people, and will run until 2029 with a total funding of USD 326 million.
