Lilongwe, 14 November 2024 – The Centre for Agricultural Transformation (CAT) and National Bank of Malawi (NBM) plc have announced a strategic partnership aimed at boosting banana production and supporting smallholder farmers in Mulanje and Thyolo districts through the establishment of banana demonstration plots. This initiative is aligned with the Malawi 2063, particularly the first pillar of agricultural productivity and commercialization.

Background of the Initiative

Malawi’s banana industry has faced significant challenges since the 2004 outbreak of the banana bunchy top virus, which devastated approximately 7,480 hectares of banana plantations. Despite government efforts to replace the destroyed banana orchards with imported seedlings, limited resources restricted full recovery. Currently, Malawi imports around 20,000 metric tonnes of bananas annually from neighbouring countries such as Tanzania and Mozambique, valued at approximately US$12 million.

NBM Plc, recognizing the importance of agricultural productivity for economic growth and financial inclusion, has partnered with CAT to establish a banana demonstration plot. The project aims to revitalize banana production in the region and support smallholder farmers with access to training and high-quality planting materials.

Details of the Partnership

The CAT will leverage its expertise and Smart Farm model, developed since its inception in 2019, to implement this initiative. This model has been successful in demonstrating agricultural innovations and fostering technology adoption through its existing Smart Farms in Lilongwe and Zomba.

NBM Plc’s role in this partnership will be to co-finance and collaborate in agricultural development efforts. The total investment in the partnership is valued at K90 million. The demonstration plots in Mulanje and Thyolo will serve dual purposes:

1. Training and Knowledge Transfer: CAT will provide practical training on best practices in banana crop management to surrounding communities, enabling farmers to enhance their production techniques and maximize yields.
2. Source of Planting Materials: The plot will supply clean, high-quality banana seedlings, supporting farmers who wish to expand their production or start new banana orchards. This will help increase the national production capacity and reduce reliance on banana imports.

Harold Jiya, CEO of NBM plc, commented, “This partnership is a testament to our dedication to supporting agricultural development and improving the livelihoods of farmers. By collaborating with CAT, we are contributing to sustainable agriculture and economic growth, which aligns perfectly with our strategic objectives and Malawi’s Vision 2063.”

Mr. Macleod Nkhoma, Executive Director of CAT, added, “We are excited to partner with NBM plc on this initiative, which leverages our Smart Farm model to promote best practices in banana production. This partnership will not only provide high-quality planting materials but also equip farmers with the knowledge and skills needed for sustainable farming, ultimately improving their income and community resilience.”

Impact and Benefits

The banana demonstration plots are expected to yield substantial benefits for local farmers and the Malawian government:

• Farmer Empowerment: By equipping farmers with advanced training and high-quality planting materials, the initiative will enable them to increase productivity, boost yields, and improve their household incomes. This will promote sustainable agriculture and elevate the living standards of farming communities.
• Reduction in Banana Imports: The increased production capacity will reduce reliance on imported bananas, enhancing Malawi’s self-sufficiency and contributing to the local economy.
• Support for Malawi 2063 Vision: The partnership aligns with the Malawi 2063 Vision, focusing on agricultural productivity and commercialization. It will aid in driving economic growth, food security, and sustainable development within the agricultural sector.
• Promotion of Agricultural Best Practices: Through the training and demonstration efforts, farmers will adopt modern, efficient farming techniques, fostering an environment of continuous learning and innovation.

Budget and Support

The total investment for establishing the banana demonstration plot is valued at K90 million, covering costs related to seedlings, fertilizers, pesticides, labour, fencing, and irrigation infrastructure.