Reserve Bank of Malawi (RBM) Governor, Dr. Wilson Banda, says Malawi has about K2 trillion in pension funds that are readily available to be invested for infrastructural development and to transform the country.
Banda said this today in the commercial city during the launch of the Trustee Development Program, which aims to build the capacity of pension fund trustees for improved pension fund management.
"There is a lot of money that is currently sitting in pension funds--about K2 trillion. If you took that money and invested it in infrastructure development, it would make a lot of difference," said the RBM Governor.
He further stated that Malawi cannot only rely on foreign borrowing, which comes with risks like currency conversion, adding that it is better to use domestically generated resources like those in pension funds.
Taking his turn, consultant from Kenya College of Insurance, Dr. Ben Kajwang, indicated that most of the pension funds in the country are invested in Treasury bills and bonds, which are short-term in nature, saying even developed countries use pension funds for infrastructure
A Local Agro — processing company has joined the continent's trendsetters in technological innovations after introducing cutting-edge technology for processing and packaging beans for domestic and export markets.
Montgomery Processors (Monty's) managing director, Mr Liam Philp revealed this during the launch of the Horticultural Development Council's (HDC) first hub and spoke collaboration between his company and Central Association of Cooperative Union (CACU) recently.
The new technology, Tetra Recart, allows products traditionally sold in cans and bottles such as beans, vegetables and thick soups to be sterilized and stored in cartons that offer shelf stability for up to 24 months.
"Tetra Recart technology is the very first on the continent and we are very proud to be the innovators to bring it to Zimbabwe. This technology makes us competitive on prices, brings sustainability to the whole value chain, makes logistics efficient and uses less energy in recycling," said Mr Philp.
He added that the innovation allowed them to create a pull effect cascading to small-scale farmers who are poised to produce Michigan pea beans. Their strategy for the first six months is to specialise in understanding the local value chain while supplying the local market before starting exports, he added.
Mr Philp said Government was on point on the need to formalise growers' operations to build a track record leading to bankability and if this was accompanied by offtake arrangements with processors, it would create opportunities for primary producers to access funding from banks.
He said Monty's had signed the agreement with CACU to have adequate local supplies and save foreign currency from importing the product from Malawi, Tanzania and South Africa.
HDC commented that the partnership marked the beginning of an innovative out-grower scheme to support smallholder farmers.
"Through the partnership, smallholder farmers will benefit from an off-taker agreement to supply Michigan pea beans to Monty's. This cooperation is a cornerstone of the HDC's innovative hub and spoke model, which is implemented with support from the United Kingdom (UK) and the Netherlands and designed to integrate small-scale farmers into the agriculture value chain," said the HDC statement.
By connecting CACU farmers with Monty's, the model aims to boost farmers' incomes, enhance product quality, create jobs and support sustainable agriculture, added the statement.
CACU has already initiated a pilot programme to cultivate 10 hectares of Michigan pea beans and is actively recruiting farmers for this exciting opportunity.
HDC chief executive officer, Mrs Linda Nielsen commented: "This engagement marks a significant step forward in our mission to empower smallholder farmers for inclusive growth. By providing a stable market and technical support, we are helping farmers to thrive and contribute to the nation's agricultural growth."
CACU was registered in 1972 as an agricultural and marketing supply cooperative under the Cooperative Act and its core business is to produce, sell, distribute and market agricultural inputs and produce.
CACU chief executive officer Mrs Bertha Maziva said: "Today we are happy to sign a contract to grow the high value Michigan pea beans and look forward to increasing food and nutrition security for households in the country."
Source: The Herald
A $52.3 million project approved today by the Green Climate Fund (GCF) aims to help Malawi cope with the devastating effects of climate change and boost the country's long-term food security.
Led by the Food and Agriculture Organization of the United Nations (FAO), the project is set to benefit nearly 575,000 vulnerable people in rural communities over six years. It will deliver urgently needed investments in adaption and resilience in Malawi, which the UN categorizes as a Least Developed Country.
The project, Ecosystems-based Adaptation for Resilient Watersheds and Communities in Malawi (EbAM), was approved by the GCF Board at its 39th meeting in Songdo, South Korea.
"This project offers a comprehensive, inclusive, and innovative approach to building climate resilience in Malawi, addressing both major environmental and socio-economic challenges in the context of climate change. We welcome the GCF Board's approval and look forward to working with our Malawi counterparts to help transform Malawi's agriculture sector through impactful, holistic ecosystem-based climate actions," said FAO Deputy Director-General Maria Helena Semedo. This is part of implementing FAO's strategy on Climate Change 2022-2031 and Action Plan 2022-2025.
Malawi is one of the poorest countries in the world, with 70 percent of its population living below the international poverty line. Its rural communities, which depend primarily on rainfed agriculture for their livelihoods, are already experiencing the effects of climate change, including rising temperatures, unpredictable rainfall, and more frequent and intense extreme weather events.
In 2023, acute food insecurity reported in the country was attributed to a significant decrease in the production of maize--the country's leading staple food--due to droughts and floods brought about by tropical cyclones, coupled with existing soil degradation.
Going forward, climate change is expected to continue to alter the onset of the rainy season, increase water stress, and intensify incidents of pests and diseases, making it even more difficult for smallholders to grow cash and subsistence crops. This will likely put farming communities under increased pressure to resort to unsustainable land use practices, further exacerbating land degradation.
Inclusive approach
The project aims to increase the resilience of rural communities at the watershed and farm levels, where ecosystem-based approaches and integrated sustainable water and soil management are critical to agricultural production and adaptation to climate change. It will also restore more than 83,000 hectares of communal and farmland.
Crucially, it adopts an inclusive and participatory approach that engages women, youth, and other vulnerable groups in all aspects of the project.
Local communities will be empowered to formulate village-level action plans (VLAPs) to conserve, restore, and sustainably manage landscapes through green infrastructure (such as gully plugs and check dams) and sustainable forest management and restoration. Communities involved in the project will receive native and well-adapted seeds and seedlings to promote high biodiversity, which is crucial for resilience, as well as equipment and materials such as wheelbarrows, shovels, wire, and boulders required to perform the work.
Farmer Field Schools will enable community members to acquire essential knowledge in sustainable agricultural practices that enhance resilience and minimize greenhouse gas emissions. This includes promoting agrobiodiversity, growing drought-resilient crops, and using weather information.
In addition to improving livelihoods and resilience, the project also aims to increase farmers' access to markets and financing opportunities, as well as to regional and international value chains, through the strengthening of Village Savings and Loans Associations (VSLA), the creation of public-private producer partnerships, capacity building for Micro, Small and Medium Enterprises (MSMEs) and technical support to financial institutions.
"Today marks a historic moment for Malawi's agricultural sector," said Sam Dalitso Kawale, Malawi's Minister of Agriculture. "The investment will increase the resilience of our rural communities at watershed and farm level, where good water and soil management are crucial to sustainable agricultural production."
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