Malawi - US$ 22 Million In Support of Small Holder Crop Production and Marketing

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Tunis, July 26 2006 – The Board of Directors of the African Development Fund (ADF) has approved a grant of 15 million units of account (US$ 22.2 million) to finance a Small Holder Crop production and Marketing Project in Malawi.

The project comprises two main components:

  • Irrigation Development and mitigation of environmental impact;
  • Farmer Support, with three sub-components (scheme management, agriculture production and marketing).

The project area will cover 19 of Malawi’s 28 districts, namely, Balaka, Chikwawa, Chitipa, Dedza, Dowa, Karonga, Kasungu, Lilongwe, Machinga, Mangochi, Mchinji, Mzimba, Nkhatabay, Nkhotakota, Nsanje, Ntcheu, Ntchisi, Rumphi and Zomba.

It will contribute to poverty reduction and food security in rural Malawi. The specific objective of the project is to increase productivity and income of rural households in the project area. This will be achieved through the intensification and diversification of the existing cropping system and improvement of the marketing system which will significantly increase production, productivity and incomes of the small farmers while improving household nutrition and environmental management of natural resources at the same time. The estimated number of beneficiary households is 8756, or a total of 45,531 people, 4,000 of them are households headed by females. About 76% of Malawi’s rural population will benefit (directly or indirectly) from the market improvement activities.

The ADB Group operations in Malawi started in 1969. To date, the total cumulative approvals amount to UA 605.98 million, with a total disbursement of UA 410.89 million.

Project Brief

1. COUNTRY : Malawi

2. PROJECT TITLE:  Small Holder Crop production and Marketing Project

3. PLACE:  19 districts of Malawi.

4. BENEFICIARIES:  Republic of Malawi.

5. EXECUTING AGENCY: Ministry of Irrigation and Water Development P.O. Box 30797, Lilongwe 3, Malawi; TEL.: 265- 1 – 759730/752122 Fax: 265- 1 – 751459

7. TOTAL COST:  UA 16.82 million


ADF GRANT: UA 15.00 million

Government of  Malawi: U.A 1.77 million

Beneficiaries:  UA 0.05 Million

* 1 UA (unit of Account) = 1.47937 USD = 1.16367 euros at 31/07/2006


Magatte Wade Phone: +216 71 10 22 44