By Burnett Munthali
Malawi is under growing pressure to overhaul its agriculture sector, with government and business leaders calling for a shift away from simply increasing farm production towards commercialisation, value addition and stronger participation in export markets.
The call was made during the opening of the 22nd National Agriculture Fair in Blantyre, where stakeholders argued that higher production alone would not deliver the incomes, jobs and foreign exchange the country needs.
Agriculture Minister Roza Mbilizi said Malawi must rethink how it produces, processes and markets agricultural commodities if it is to achieve the ambitions outlined in Malawi 2063, the country’s long-term development strategy.
She said the emphasis should increasingly be placed on creating economic value from agricultural output rather than measuring progress solely by production volumes.
“Our goal is to translate increased production into higher incomes, stronger businesses and a more prosperous Malawi,” Mbilizi said.
The renewed focus comes amid concerns over Malawi’s weakening export performance and its continued dependence on a narrow range of commodities.
World Bank figures cited at the agriculture fair indicate that Malawi’s exports declined by 31 percent between 2014 and 2023. The number of exporting companies has also fallen sharply, from an average of 1,069 between 2009 and 2012 to 684 in 2024.
The country’s export base remains dominated by tobacco, which accounted for about 61 percent of merchandise exports in 2024.
Stakeholders say the situation highlights the need to develop more competitive agricultural value chains capable of supplying both domestic industries and international markets.
Mbilizi said government was supporting the transition through programmes targeting irrigation, mechanisation, processing, storage, market information and producer organisations.
She cited the World Bank-supported Agriculture Commercialisation Project 2, which has provided grants to 425 producer organisations and 41 small businesses.
The Sustainable Agriculture Production Programme II is also supporting more than 700 farmer groups, she said.
However, Malawi continues to struggle to fulfil some of the export opportunities available to its agricultural producers.
The country has previously failed to consistently meet an annual 50,000-metric-tonne export arrangement with India. A separate food export agreement with South Sudan, valued at about $295 million annually, also failed to reach its expected level because of inadequate volumes, quality problems and deterioration of some products.
Sesame production faces similar constraints despite an identified export opportunity of up to 200,000 metric tonnes in Japan, according to the World Food Programme.
Low productivity remains one of the sector’s biggest obstacles. Average maize yields of about 2.1 metric tonnes per hectare remain substantially below Malawi’s 2024 National Adaptation Plan target of four metric tonnes and the estimated potential of up to 10 metric tonnes per hectare.
Business leaders say improving productivity must be accompanied by lower production and transport costs, reliable energy supplies and greater investment in processing.
Limeset Industry managing director Eunice Kafwamba said high electricity and transport costs were restricting the expansion of businesses supplying agricultural inputs, including agricultural lime, which plays an important role in improving soil conditions and crop performance.
Export Development Fund marketing and communication specialist Deliby Chimbalu said some businesses were also failing to take advantage of available financial facilities because of limited awareness.
She said the fund offers financing mechanisms, including export packaging credit and risk-sharing guarantees, designed to help businesses meet production and export requirements.
Malawi Confederation of Chambers of Commerce and Industry president Ronald Ngwira said the private sector must move beyond the objective of producing more and instead concentrate on efficiency, value addition and access to profitable markets.
“The challenge is therefore not simply to produce more, but to produce efficiently, add value and connect production to profitable markets,” he said.
Ngwira, who is also managing director of Illovo Sugar (Malawi) plc, said closer cooperation between government and the private sector could help remove some of the barriers affecting industrial growth.
He also stressed the importance of climate resilience and sustainable production if Malawi is to remain competitive in international markets.
The 22nd National Agriculture Fair, organised by MCCCI, is being held under the theme “Transforming agriculture through innovation, value addition and market linkages.”
The event has attracted 77 exhibitors occupying 139 exhibition booths, bringing together agricultural input suppliers, farmers’ organisations, agro-processors, researchers, service providers and livestock businesses.
The discussions at the fair underscore a broader challenge facing Malawi: converting its agricultural potential into a diversified commercial sector capable of generating higher incomes, creating employment and earning much-needed foreign exchange.
