A $52.3 million project approved today by the Green Climate Fund (GCF) aims to help Malawi cope with the devastating effects of climate change and boost the country's long-term food security.

Led by the Food and Agriculture Organization of the United Nations (FAO), the project is set to benefit nearly 575,000 vulnerable people in rural communities over six years. It will deliver urgently needed investments in adaption and resilience in Malawi, which the UN categorizes as a Least Developed Country.

The project, Ecosystems-based Adaptation for Resilient Watersheds and Communities in Malawi (EbAM), was approved by the GCF Board at its 39th meeting in Songdo, South Korea.

"This project offers a comprehensive, inclusive, and innovative approach to building climate resilience in Malawi, addressing both major environmental and socio-economic challenges in the context of climate change. We welcome the GCF Board's approval and look forward to working with our Malawi counterparts to help transform Malawi's agriculture sector through impactful, holistic ecosystem-based climate actions," said FAO Deputy Director-General Maria Helena Semedo. This is part of implementing FAO's strategy on Climate Change 2022-2031 and Action Plan 2022-2025.

Malawi is one of the poorest countries in the world, with 70 percent of its population living below the international poverty line. Its rural communities, which depend primarily on rainfed agriculture for their livelihoods, are already experiencing the effects of climate change, including rising temperatures, unpredictable rainfall, and more frequent and intense extreme weather events.

In 2023, acute food insecurity reported in the country was attributed to a significant decrease in the production of maize--the country's leading staple food--due to droughts and floods brought about by tropical cyclones, coupled with existing soil degradation.

Going forward, climate change is expected to continue to alter the onset of the rainy season, increase water stress, and intensify incidents of pests and diseases, making it even more difficult for smallholders to grow cash and subsistence crops. This will likely put farming communities under increased pressure to resort to unsustainable land use practices, further exacerbating land degradation.

Inclusive approach

The project aims to increase the resilience of rural communities at the watershed and farm levels, where ecosystem-based approaches and integrated sustainable water and soil management are critical to agricultural production and adaptation to climate change. It will also restore more than 83,000 hectares of communal and farmland.

Crucially, it adopts an inclusive and participatory approach that engages women, youth, and other vulnerable groups in all aspects of the project.

Local communities will be empowered to formulate village-level action plans (VLAPs) to conserve, restore, and sustainably manage landscapes through green infrastructure (such as gully plugs and check dams) and sustainable forest management and restoration. Communities involved in the project will receive native and well-adapted seeds and seedlings to promote high biodiversity, which is crucial for resilience, as well as equipment and materials such as wheelbarrows, shovels, wire, and boulders required to perform the work.

Farmer Field Schools will enable community members to acquire essential knowledge in sustainable agricultural practices that enhance resilience and minimize greenhouse gas emissions. This includes promoting agrobiodiversity, growing drought-resilient crops, and using weather information.

In addition to improving livelihoods and resilience, the project also aims to increase farmers' access to markets and financing opportunities, as well as to regional and international value chains, through the strengthening of Village Savings and Loans Associations (VSLA), the creation of public-private producer partnerships, capacity building for Micro, Small and Medium Enterprises (MSMEs) and technical support to financial institutions.

"Today marks a historic moment for Malawi's agricultural sector," said Sam Dalitso Kawale, Malawi's Minister of Agriculture. "The investment will increase the resilience of our rural communities at watershed and farm level, where good water and soil management are crucial to sustainable agricultural production."

Source: The Herald

Industrial output has jumped by 8.8 percent, but some manufacturing firms have witnessed a decline in some segments, figures from the Ministry of Finance and Economic Affairs show.
The Malawi Government Annual Economic Report 2024 compiled by the Ministry of Finance and Economic Affairs shows that industrial output grew by 8.8 percent between 2021 and 2022 while output for the manufacturing sector rose by 5.9 percent.
However, there was a general decline in output in three out of five segments of the manufacturing sector, according to the report.
Reads the report in part: “A 72.9 percent increase was registered for the manufacture of tobacco products and the manufacturing of rubber and plastic products increased by 7.8 percent.
“The manufacturing of tobacco products alone contributed 65.3 percentage points to the annual growth rate and volume of production in Malawi.”
Meanwhile, output in the manufacture of food products dropped by 14 percent from the 2021 levels while the manufacture of beverages and chemicals and chemical products dropped by 35.6 percent and 29.3 percent, respectively.
The drop in output, attributed to the scarcity of foreign exchange and fuel, threatened to derail the country’s efforts to spur economic transformation through Industrialisation.
Reacting to the report, economist Bond Mtembezeka said the limited access to credit extended to the private sector, which has historically been skewed against the manufacturing sector, might have prevented the manufacturing sector from accessing credit during acute forex scarcity.
He said: “Manufacturers import raw materials and to do that they also rely on the lines of credit.
“If foreign exchange is scarce, they can’t import as much and by implication, cannot acquire as much credit.”
On the manufacturing sector’s capacity to boost economic growth, Mtembezeka said it is hard to achieve that goal when some of the segments in the manufacturing sector are in a state of decline.
On his part, economic analyst Dalitso Kubalasa urged local authorities to ensure that there is more financing going to the manufacturing and agricultural sectors to revitalize the ailing economy.
The Ministry of Finance and Economic Affairs is in the process of developing Special Economic Zones to attract investors to critical sectors of the economy having enacted Special Economic Zones Bill last year.
The manufacturing sector is grow in 2024 and 2025 at 4.4 percent and 4.6 percent, respectively.
Source: Malawi Nation online
ARISE Integrated Industrial Platforms (ARISE IIP), owned by Africa Finance Corporation (AFC), Afreximbank and Africa Transformation and Industrialization Fund (ATIF), the developer and operator of world-class industrial ecosystems across Africa, is proud to announce the signing of a development agreement with the Government of Malawi for the construction of a Special Economic Zone (SEZ) and a dry port in the North of Lilongwe, Area 55 in Malawi. This agreement, in line with ARISE IIP’s ambition to unlock Africa’s industrial potential, will support the Government of Malawi in advancing the country’s long-term vision of becoming an inclusively wealthy and self-reliant industrialized upper-middle income country by 2063.
With an investment of approximately USD 150 million in infrastructure development and in partnership with Afreximbank, the Special Economic Zone (SEZ) and the dry port will be located north of Lilongwe, in the designated Area 55 in Malawi. The Special Economic Zone (SEZ) will aim to stimulate and attract multi-sector investments, both industrial and commercial, in the country and offers logistic services and inland container depot services to enterprises in Malawi. It will seek to promote the local processing of raw materials into high value-added finished products, with an emphasis on agricultural products and inputs. Arise IIP will oversee the majority of the project, holding a 65% stake, while the remaining 35% will be shared by the Malawian government and local investors.
Construction work is scheduled to begin in 2024 with the zone expected to become operational from 2026. The project is set to create approximately a minimum of 132,000 direct jobs and over 26,000 indirect jobs.
Gagan Gupta, Founder and CEO of ARISE IIP commented: “It is a great honour to partner with the Government of Malawi for the establishment of an Integrated Industrial Platform and a dry port in the country. Leveraging our experience as developers and operators of industrial ecosystems across the African continent, we are committed to supporting the Malawian Government’s initiatives for national development.”
Honourable Sosten Alfred Gwengwe, MP, Minister of Trade and Industry of Malawi said “This collaboration with Arise Integrated Industrial Platforms (Arise IIP) represents a significant opportunity to boost trade, investment, and job creation in the country. Given Arise IIP’s proven success in developing major projects across Africa, we look forward to seeing the positive impact of our joint efforts.”
For the past few years, ARISE IIP has experienced a remarkable expansion across Africa, with 12 integrated industrial zones accelerating the continent’s Industrialisation. For reference, in Benin, ARISE IIP manages the Glo-Djigbé Industrial Zone dedicated to the local processing of agricultural raw materials such as cotton, cashew nuts, pineapples, shea nuts, soya, etc. with the aim of creating flourishing value chains ranging from the supply of raw materials to the processing of resources and the export of finished products. The industrial zone is expected to create more than 300,000 direct jobs by 2030. Across the continent, ARISE IIP’s primary drive has always been the creation of industrial ecosystems committed to generating high local added value along with sustainable growth.
Source: Arise website
A report by the Economic Commission for Africa (ECA) Africa's has stated that contribution to global trade remains at less than 3%.
The report on assessment of progress on regional integration in Africa shows Africa's regional integration agenda is progressing, but slowly.
It added that the programme for infrastructure development in Africa has seen mixed results in its efforts to enhance infrastructure.
While progress has been made in the areas of roads and ICT, advancements in rail transport and energy infrastructure have been minimal with financing posing a significant hurdle.
ECA Director, Regional Integration and Trade Division, Stephen Karingi, said unconstitutional changes in government across the continent, unemployment and poverty were top challenges facing the continent.
According to him, "The rising number of unconstitutional changes of Government highlights the ongoing challenges afflicting African countries, including weak governance, persistent poverty and limited employment opportunities.
The report further noted that although the agreement establishing the African Continental Free Trade Area (AfCFTA) officially started on January 1, 2021, the anticipated improvements in trade between African countries have not materialized.
The proportion of intra-African trade relative to worldwide trade decreased from 14.5% in 2021 to 13.7% in 2022.
During this time frame, the share of intra-African exports out of total exports dropped from 18.22% to 17.89%, and the share of intra-African imports out of total imports fell from 12.81% to 12.09%.
Source: allafrica.com

In tobacco production, curing the crop once it is harvested is an essential step towards making the harvested commodity ready for the market.

The most common methods for curing tobacco are by air, flue, sun and fire. In Malawi however, small-scale tobacco farmers commonly use fire, where open wood fires are kindled on the floor of a curing barn, and the curing process can either be continuous or intermittent, extending three to ten weeks before the leaf can be cured to the desired finish and be ready for the market.

But with wood fire curing of tobacco having the potential to increase deforestation levels and contribute to environmental degradation and consequently climate change, the tobacco company Philip Morris International (PMI) says it is working with small-scale tobacco farmers in Malawi, Argentina, China and Mozambique among other countries, in an integrated production system that ensures the wood used to cure the tobacco after harvesting is from sustainably managed forests.

For a long time, environmental organizations not only in Malawi but across the world have contended that the growing of tobacco has many serious environmental consequences which include loss of biodiversity, increase in atmospheric carbon dioxide and soil erosion among other effects, because cutting down trees for curing the crop after harvest directly causes deforestation.

PMI Sustainability, Activation and Support Director Miguel Coleta says forest sustainability is indeed paramount and the production of tobacco should not be allowed to cause degradation.

He says the company is working with local farmers in six countries including Malawi, where it offers both technical and financial support so that farmers use the forests where they get the wood to cure tobacco sustainably.

"As part of this relationship, we can have farm-by-farm monitoring of the tobacco production to ensure it is sustainably produced and the forests where wood to cure it comes from are sustainably managed. Today, we know where the wood is coming from on each farm, from among the farmers we are working with. We also do monitor to ensure that the investments we have made over the years, in this sustainability push is bearing the intended results," he said.

Mr. Coleta says in 2022 alone, PMI invested 6.6 million United States dollars in six countries including Malawi, on projects aimed at reforestation through awareness programs with farmers, which he says are key towards ensuring sustainability in environmental conservation. In the case of Malawi, Universal Leaf is the local partner in these activities.

"So we take a landscape approach. When we think about the environment, we think about the intersection between the impact of tobacco growing on the individual, the farmer, the community and the environment itself, and these impacts are addressed through this integrated production system," Mr. Coleta said.

Mr. Coleta explained that engaging directly with the farmer in this integrated production system is fundamental so that small-scale farmers can have predictability in terms of not only having a buyer for their produce or having a favorable price for their crop, but also having access to best practices that will improve their production capacity by taking care of the environment where they grow their crops.

"Sustainability is not just about managing the negatives but also looking for ways to create positives by using technology and innovation to drive value for society. In that sense, when it comes to tobacco growing, what is underpinning everything we are doing is the integrated production system," he explained.

In Malawi, Tobacco is considered green gold and the most profitable crop which can have over 20 times export value compared to tea, which is also an export from the country.

Mr. Coleta says through the integrated production system and to ensure sustainability in terms of the quality of tobacco, farmers have standard guidelines to follow which also include not using child labour, apart from using wood from sustainably managed forests in the curing of the harvested crop.

Meanwhile, the impacts of climate change on the farmer have also been an issue of concern, with tobacco production especially in Malawi being dependent on the rainy season, making access to water a subject that needs to be addressed so that farmers do not just rely on tobacco growing, but can grow other crops during the long dry season.

"Water is important for health, safety and hygiene, and having access to water without women having to walk for kilometers before getting the commodity is paramount. There is also a need for the farmer to have the ability to grow other things apart from tobacco since tobacco is one hundred percent rain-fed.

"So that's why in recent years, we have been working with communities and our business partners in local areas, digging hundreds of boreholes and hand pumps to provide access to water through what we call the wash program," Mr. Coleta explained.

Source: Nyasatimes