* The various reforms are to enhance targeting, efficiency and mitigate all risks on the fiscus
* K12 billion has been allocated for maize purchases by the National Food Reserve Agency and ADMARC to replenish the strategic grain reserves
By Duncan Mlanjira
Finance & Economic Affairs, Sosten Gwengwe told Parliament on Thursday during his National Budget policy statement that government will continue to reform the Affordable Input Programme (AIP) in the 2023/2024 fiscal year.
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He said “Learning from the challenges encountered this financial year and the previous ones, the AIP will undergo various necessary reforms to enhance targeting, efficiency and mitigate all risks on the fiscus”.
He also reported that K12 billion has been allocated for maize purchases by the National Food Reserve Agency and ADMARC to replenish the strategic grain reserves.
“These resources are part of the total allocation to the agriculture sector. Apart from being allocated K6 billion for restructuring costs in the 2022/23 budget, ADMARC has also been allocated K4 billion in the 2023/24 budget as start up resources for its recapitalization.”
He emphasized that agriculture remains the backbone of this economy and government is “promoting agriculture commercialization and diversification as one way of reforming the sector”.
“In the 2022/2023 financial year, Government implemented interventions aimed at building Productive Alliances among producer organizations and off takers to promote agriculture commercialization.
“Most of the producer/farmer organizations were supported with matching grants which were accessed through Sustainable Agriculture Production Project (SAPP), Agriculture Commercialization Project (AGCOM) and Malawi Watershed Services Improvement Project (MWASIP) projects.
“During the period, government through SAPP, funded a total sum of K356.8 million to 119 groups comprising 4,453 beneficiaries while through AGCOM, Government funded a total of K6.3 billion to 173 producer organizations benefitting 38,852 farmers.
“Cumulatively, Government through AGCOM has reached to 275 farmer organizations and has disbursed about K21.9 billion and through MWASIP, Government has further disbursed K441 million to 36 farmer groups.”
He then reported that building on the successes so far and the need to expand the agriculture commercialization programme, “the Government, in collaboration with the World Bank, is preparing phase two of the rogramme to the tune of US$235 million — up from the currently US$95 million”.
He assured that “the future is agriculture commercialization”, saying:
“As of 1st March, 2,048,634 of our farmers have benefited from a 50kg bag of NPK and 1,722,388 have benefited from a 50kg bag of UREA.
“This was made possible by the K109 billion that this House appropriated and the gesture of many friends of Malawi who stepped forward with donations of fertilizers.”
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In its drive to promote, industry, trade and private sector development for sustainable economic growth, Gwengwe said “government facilitated the establishment of edible oil crushing plants in the country to reduce imports of crude oil”.
“Some of the companies include Agri Value Chain Industries at Nsundwe in Lilongwe, MOTI Mill Oils at Kanengo in Lilongwe and Bakhresa in Limbe-Blantyre.
“Agri Value Chain Industries at Nsundwe has started crushing soya beans into crude oil and is expected to start production of refined cooking oil in the next four months. In addition, it facilitated the development of a leather tannery at Liwonde that is processing hides and skins to final leather.
The mining sector was also highlighted, saying it “remains one of the key drivers of economic growth in this country and government has issued 51 large-scale mine exploration licenses; 9 medium-scale, 351 small-scale and 423 reserved minerals licenses.
“In addition, gold purchases have reached a total volume of 186.96 kilograms at a total purchase cost of MK9.4 billion, as of 30th November 2022.”
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To boost agriculture further in relation to produce transportation, the Minister said the 72km Marka-Bangula railway section rehabilitation and upgrading and it is at 17.5% completion rate while progress of rehabilitation of Nkaya-Chipala railway line is at 85% completion with Chipala-Mchinji border railway line ay 15% — whose “progress was affected by the wash away of the Bridge at Nanyangu in Ntcheu”.
“Under a concession agreement, Government is also rehabilitating the 72km railway section from Limbe to Sandama. The project track progress is at 80% completion status.
“In addition to the rehabilitation of the railway lines, the construction of a 170-metre bridge across the Ruo River at Osiyana in Nsanje is in progress and currently at 93% completion rate. This bridge will be used by both vehicles and trains.,” said the Minister.
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