Key Business Points
- Agriculture sector growth is hindered by structural, climatic, and policy challenges, despite substantial investments, affecting its contribution to Malawi’s GDP.
- Value addition and private sector engagement are crucial for import substitution and identifying quick wins and value chains where Malawi has a competitive advantage.
- Policy adjustments and investments in irrigation, mechanisation, and soil nutrition management are necessary to address climate vulnerability and transform the agriculture sector.
The agriculture sector in Malawi is facing significant challenges, despite support from programs such as the National Economic Empowerment Fund and the Agricultural Commercialisation Project. According to data from the Reserve Bank of Malawi, the sector’s contribution to GDP has been fluctuating in recent years, accounting for 22.5 percent of GDP in 2021 and 2022, before declining to 22.3 percent in 2023, 22 percent in 2024, and projected to further decline to 21 percent in 2025. Zinthu zopusika, or the need for improvement, is evident in the sector’s productivity growth, which has been hindered by systemic constraints such as weak extension services, limited mechanisation, and declining soil fertility.
Agriculture economist Innocent Phangaphanga highlighted the effects of structural transformation in the agriculture sector, noting that services and trade have expanded faster than agriculture, leading to a decline in the sector’s relative share of GDP. He also cited climate vulnerability as a major challenge, with recurring droughts, floods, and cyclones eroding gains made in the sector. Kukonza kalima, or adding value, is essential for the sector’s growth, and Phangaphanga emphasized the need for policy adjustments and investments in irrigation, mechanisation, and soil nutrition management.
Agriculture policy development analyst Tamani Nkhono Mvula echoed these sentiments, stating that Malawi has failed to adjust policies to suit the changing environment. He emphasized the importance of value addition and private sector engagement for import substitution and identifying quick wins and value chains where Malawi has a competitive advantage. The Ministry of Agriculture Principal Secretary Geoffrey Mamba reaffirmed the government’s commitment to transforming the agriculture sector, highlighting the shift from rain-fed to irrigation-based production, mechanisation, and soil nutrition management as key priorities.
The 21st National Agriculture Fair, held in Blantyre, provided a platform for farmers, researchers, and entrepreneurs to discuss the sector’s challenges and opportunities. The fair’s theme, ‘Towards commercialisation and economic transformation through smart and sustainable agricultural systems’, reflects the need for a business-driven and technologically enabled approach to agriculture. With 115 exhibitors participating in the fair, there are opportunities for local entrepreneurs to engage with the sector and contribute to its growth. As the sector continues to face challenges, it is essential for stakeholders to work together to address these issues and unlock the potential of Malawi’s agriculture sector.
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