Malawi Farmers Wants Restructured Agricultural Economy

Prince Kapondamgaga

Malawi farmers have asked Government to demonstrate tangible commitment in restructuring agricultural economy.

Farmers Union of Malawi (FUM) Chief Executive Officer, Prince Kapondamgaga made the appeal on Tuesday at the opening ceremony of Farmers Policy Conference and Farmers Union of Malawi 12^th Annual Congress in Lilongwe.

Kapondamgaga bemoaned that agenda of diversification beyond tobacco which he referred to as “major commodity on the political ladder”, has largely been rhetoric and there has been limited investment in other subsectors such as oil seeds.

“The dismal performance of the tobacco subsector this season is a clear signal that Malawi seriously needs to restructure its economy and invest in infrastructure development and policy support for other viable chains.” He said and urged Government to put in place clear roadmap of how the country intends to support the restructuring of the economy when implementing the MDGS III

FUM CEO expressed optimism that the transforming agenda in the sector is possible by recalling that in the past, guided by Special Crops Act, Government successfully managed to invest in financial and human resources in the development of key strategic crops.

But he mentioned that for Malawi to truly transform the agricultural sector, there is need to address the challenges of access to finance by considering provision of credit guarantee schemes which are insulated from political interference.

“Government should demonstrate tangible commitment in restructuring the agriculture economy.” He emphasised but also recognised the efforts of Government’s aspirations to diversify and promote agricultural structural transformation and strong participation of private sector in the agriculture sector through National Export Strategy (NES) and the signing of the G7 New Alliance for food and Security and Nutrition

He said Agriculture accounts for about 30% of Gross Domestic Product, 90% of export earnings and employs over 80% of Malawi’s Workforce of which 70% is women; provide 65% of total income for rural people and support 65% of raw materials for the manufacturing industry.

“These statistics support the evidence consistent for most of the agro-based economies like Malawi, that achieving agricultural-structural transformation is a sustainable pathway for inclusive growth” he added with call for the country to urgently diversify its food and export base, increase labor and land productivity

In his remarks, Minister of Agriculture, Irrigation and Water Development, George Chaponda who officially opened the conference on Tuesday, assured farmers that his ministry is committed to providing leadership and speedy reform process of the laws to facilitate agricultural trade for the benefit of the farmers and key actors in agricultural value chains.

He among others mentioned that Government has prioritised areas that require urgent action to address the policy and political environment that can attract private sector investment and drive development of agricultural markets.

On this, Chaponda assured farmers gathered at the three day conference that them and business community in the country stands to benefit from an improved and harmonised trade regime that reduces cost of doing business following the signing of the Tripartite Free Trade Area Agreement in June 2015.

He explained that for the country to fully benefit from this agreement, Government is making efforts to make the country competitive in agriculture which is the main drive of the economy by addressing some underlying structural and systematic barriers to agriculture development and investment including the creation of an enabling environment that would reduce the cost of doing business and reviewing of the land policy to accelerate foreign and domestic investment in agriculture.

Commenting on ‘Farming Markets and Development’ the Minster said Government is modernising and commercialising agriculture and is committed to facilitate and transform the smallholder sector through promotion of agriculture cooperatives, contract farming, anchor farming models, and agricultural commodity exchange platforms.

“These efforts are aimed at facilitating easy access to inputs, technology transfer and access to competitive markets.

For example, Government has already developed a Warehouse Receipt Bill and is in the process of developing the Warehouse Receipt Regulatory Framework. This Framework will provide an enabling environment and mechanisms for access to financing by farmers and other value actors. Farmers will also be able to store their produce in certified warehouses as they wait for better markets.” He said

Chaponda also mentioned that government recognises that for markets to work and develop, there is need for strong and well-functioning institutions, stable and predictable policies and relevant and up-to-date legislative instruments.

He further informed the delegates that very soon Cabinet will approve the National Agriculture Policy and that Agriculture Sector Wide Approach (ASWAP) has been reviewed and will be developing new ASWAP upon approval of the National Agriculture Policy. He also mentioned that the ministry is also reviewing and finalising the Seed Policy and Seed Act, developing the Fertiliser Regulatory Framework and finalising the Tobacco Bill among others.

He assured while calling FUM and all player to continue working with Government “to ensure that the reforms indeed respond to the needs of farmers in Malawi.”

This year’s theme for the Annual Congress and the National Farmers Policy Conference; Farming for Markets and Development: Partnerships for Increased Farmer Productivity, Market Access and Incomes’