The Malawi government has unveiled an estimated USD 400 million (696.3 billion Malawi Kwacha) agriculture budget aimed at boosting commercialization and irrigation projects. This allocation accounts for 9% of the total national budget of approximately USD 4.6 billion (8.05 trillion Malawi Kwacha), making agriculture one of the most heavily funded sectors.
A significant portion of the budget has been earmarked for agricultural commercialization, with an estimated USD 82 million (143.5 billion Malawi Kwacha) allocated to initiatives that enhance productivity and market access. Additionally, USD 57 million (99.5 billion Malawi Kwacha) has been set aside for irrigation projects, designed to increase agricultural output and reduce dependency on rain-fed farming.
Many farmers have already benefited from the commercialization initiatives, gaining access to tractors and loans through cooperatives. The Malawi University of Business and Applied Sciences is playing a key role in promoting mechanized farming by supporting the production of agricultural machinery and operating hiring centers for farm equipment. Training programs for farmers are also being implemented to maximize the impact of these initiatives.
Expanding Opportunities for Farmers
The agricultural commercialization drive is particularly beneficial to smallholder farmers, cooperatives, women, youth, and rural communities. These groups are gaining improved access to markets, increased income opportunities, and a stronger foundation for economic growth through value-added agricultural production.
In the irrigation sector, the government aims to optimize the use of 56,113 hectares of irrigable land. The plan includes a target maize yield of 337,000 metric tonnes, the development of 6,000 hectares of new irrigation infrastructure, the rehabilitation of 9,000 hectares of existing land, and support for farm groups covering 46,706 hectares.
Addressing Food Security Challenges
Malawi continues to face significant food security challenges, with an estimated 5.7 million people at risk of hunger during the 2024/2025 lean season, according to a multi-stakeholder Vulnerability Assessments Committee report. The country’s staple food, maize, has experienced price surges due to supply shortages, making it difficult for many households to afford.
In 2024, maize production declined by 17%, dropping from 3.5 million metric tonnes (MT) in the 2023 season to 2.9 million MT. This reduction has exacerbated food shortages, leaving many vulnerable to hunger.
Government’s Commitment to Sustainable Agriculture
Presenting the 2025/2026 national budget, Finance Minister Simplex Chithyola Banda emphasized that agriculture remains a critical pillar of Malawi’s socio-economic development. He underscored the importance of irrigation in mitigating the impact of El Niño-induced dry spells and ensuring food security.
“Irrigation is essential for stabilizing maize yields, reducing food shortages, and shielding smallholder farmers from economic shocks. Our focus is on investing in irrigation infrastructure and mega farms to expand exports and achieve self-sufficiency in food production,” Banda stated.
He further highlighted plans to improve irrigation systems, optimize land use, promote agricultural entrepreneurship, and empower youth in agribusiness.
Expert Perspectives and Farmer Reactions
Agriculture economist and development expert Tamani Nkhono-Mvula commended the budget as a well-structured initiative that prioritizes agricultural growth and commercialization. He noted that the increased allocation for irrigation marks a positive shift from previous budgets.
“The additional investment in irrigation will help bridge the production gap. In the past, irrigation received limited attention, but channeling funds into mega farms for irrigation could be a game-changer,” said Nkhono-Mvula. However, he stressed the need for crop diversification to ensure long-term agricultural sustainability.
Farmers are optimistic about the benefits of the budget. Dominic Amoni, a farmer from Dowa district, approximately 50 kilometers from Lilongwe, expressed confidence in the government’s commitment to irrigation development.
“Irrigation can secure Malawi’s food supply. As a farmer, I am encouraged by this budget because it prioritizes irrigation. Let’s work together to make the most of these opportunities,” Amoni remarked.
With strategic investments in commercialization and irrigation, Malawi aims to transform its agricultural landscape, strengthen food security, and improve livelihoods across the country.