• Reference: P-MW-AAC-001
• Approval date: 26/07/2006
• Start date: 02/05/2007
• Appraisal Date: 06/02/2006
• Status: OngoingOnGo
• Implementing Agency: MINISTRY OF AGRICULTURE & IRRIGATION
• Location: NATIONWIDE

Background

The small-holder agricultural sub-sector accounts for the bulk of food production in Malawi. It is characterised by subsistence, low productivity and vulnerable to droughts and floods. 

The project addresses one of the core challenges identified by the government of Malaw’s (GOM) draft Malawi Growth and Development Strategy (MGDS) 2006-2011. This is that agricultural development will drive medium term growth by expanding and diversifying production. The agriculture sector is thus expected to contribute to sustainable economic growth, considered central to Malawi’s ability to reduce poverty, achieve the MDGs and gain self sufficiency. It is recognized that, without achieving this growth, it will be impossible to deliver on the Government’s vision of creating wealth and employment for all the people of Malawi.

The project is also anchored in the Government’s New Agriculture Policy, National Irrigation Development Policy and the Decentralisation Policy. It will thus contribute to the achievement of the goals of the MGDS and Malawi’s Agricultural Sector Strategy.

Rationale

Malawi’s unreliable rainfall, combined with extended dry spells that adversely affect crop productivity, calls for full and supplementary irrigation. Investment in the harvesting and management of water during periods of plenty, and for irrigation use during periods of scarcity is critical to meeting the country’s growing food requirements. Enhanced agricultural productivity through irrigation has the potential to double yields and provide two harvests per hectare to the small farmer in a given year. It has been noted that farmers using irrigation schemes are more food self-sufficient and economically better off than those totally dependent on rain-fed farming. Analyses of small irrigation schemes in especially neighbouring Kenya and Zimbabwe, where average land holdings ranged between 0.5 ha and 1.0 ha have shown that irrigation generally contributes 25-80 per cent of total household income, contributing substantially to poverty reduction. The project is thus a national priority for Malawi.

It will target smallholder food producers with the aim of improving food security and reducing poverty for the participating households, as well as for the communities near the irrigation schemes.

Objectives

The project’s specific objective is to increase the productivity and incomes of rural households in the project areas through the intensification and diversification of current cropping and improvement of the marketing system. This will significantly increase production, productivity and incomes of the small farmer whilst improving household nutrition and environmental management of natural resources at the same time.

Description

The project comprises three components, namely irrigation development, a farmers’ support programme and project management and coordination.

Benefits

The project raise yields and incomes in the project areas. It will also contribute to creating a cadre of well-trained smallholder farmers and promote business development and the emergence of rural entrepreneurs. This should help create a critical mass of self-confident and business oriented farmers who will be able to identify, develop and exploit economic opportunities related to agricultural production and marketing on a sustainable basis.

An economic analysis carried out for a 20-year period showed that the project will be rewarding, with an economic internal rate of return (EIRR) of 25.1 per cent.

KISYOMBE Vinda Highson Lutamyo - OSAN3

Finance source	Amount
ADF	UAC 15,000,000
Government	UAC 1,820,000
Total	UAC 16,820,000