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Key Business Points
- The newly-launched 15-year Malawi Coffee Strategy aims to transform the coffee sub-sector into a strong value chain, potentially earning $240 million (about K420 billion) annually by 2040.
- The strategy targets smallholder farmers, emphasizing the need for them to produce well-graded coffee and organize themselves into cooperatives, which can help address challenges in market availability, as noted by Phoka Coffee Growers Society representative Mfumukazi Kampendanga.
- Efficient implementation of the strategy, which includes reforms in regulation, research, markets, and sustainable production, is crucial to achieving the projected revenues, with growing global demand for coffee presenting a significant opportunity for Malawi’s coffee sector, including specialty coffee exporters like Mzuzu Coffee Planters Cooperative Union Limited.
The Ministry of Agriculture, Irrigation and Water Development has launched a 15-year strategy aimed at boosting the coffee sub-sector in Malawi. According to Minister Roza Fatch Mbilizi, the strategy has the potential to turn the coffee sub-sector into a strong value chain capable of earning significant revenues. The strategy, which runs from 2025 to 2040, outlines reforms in regulation, research, markets, and sustainable production. Mbilizi emphasized the importance of smallholder farmers producing well-graded coffee and organizing themselves into cooperatives. This approach can help address challenges in market availability, as noted by Phoka Coffee Growers Society representative Mfumukazi Kampendanga, who said the strategy will help solve the challenges cooperatives in the coffee sector are facing in terms of markets availability.
The strategy falls under a €15 million (about K31 billion) Italian Government-funded initiative through the Advancing Climate Resilient and Transformation in African Coffee Project, being implemented in five African countries. Associate professor of environment and development at Malawi University of Science and Technology, David Mkwambisi, called for the strengthening of the institutional framework, including setting up a Coffee Control Commission. This move is expected to help regulate the sector and support the growth of the coffee industry. Mkwambisi noted that "what is currently lacking is an institutional framework on the part of the government to lead in policy implementation as they regulate the sector."
The coffee sector in Malawi has faced challenges in recent years, including smuggling, which has crippled the business of specialty coffee exporters. In May this year, Mzuzu Coffee Planters Cooperative Union Limited e-business communication and technology officer Joseph Chidwala decried smuggling, saying it has led to significant losses in export earnings. According to data from the Ministry of Finance and Economic Planning and Decentralisation, the export value of coffee has been fluctuating in recent years. However, with the new strategy in place, there is hope that the sector can recover and achieve significant growth. As Mbilizi noted, "efficient implementation of the strategy can help Malawi reach the projected revenues even earlier, citing growing global demand for the crop." With the right support and implementation, Malawi’s coffee sector can become a significant contributor to the country’s economy, creating opportunities for local entrepreneurs and smallholder farmers to benefit from the zimeenda (growth) of the industry. The strategy’s focus on sustainable production and market development can also help to promote kujitolea (participation) and uchumi wa kuwiliwa (inclusive economy) in the coffee sector.
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