MCCCI urges conducive AGRO business climate

Malawi Confederation of Chambers of Commerce and Industry (MCCCI) has urged the government to provide a conducive environment to boost private sector investment in agriculture, noting that commercialisation depends on value addition, technology and market-oriented value chains.

MCCCI president Ronald Ngwira, speaking yesterday at the official opening of the 22nd National Agriculture Fair at Chichiri Trade Fairs Grounds in Blantyre, asked the government to create conditions that make it cheaper and easier for businesses to invest while the private sector takes the lead in transforming agriculture, which contributes about 25 percent to the country’s gross domestic product, into a commercially viable sector.

He said the private sector should also increase investment in irrigation, mechanisation, agro-processing, storage, logistics and technology while farmers need stronger links with aggregators, processors, exporters and buyers.

Mbilizi (L) gets a briefing at SeedCo Malawi pavilion at the fair yesterday. | Grace Phiri

Ngwira, who is also Illovo Sugar (Malawi) plc managing director, said: “Our challenge is, therefore, not simply to produce more, but to produce efficiently, add value and connect production to profitable markets.

“MCCCI believes that government must set the enabling environment, but the private sector must lead the commercial transformation of agriculture.”

He said the fair has evolved beyond an exhibition into a business platform where policy meets practice, research meets the market and finance meets enterprise, with last year’s event generating deals worth about K2.4 billion in dairy and honey and more than K100 million in farm equipment sales.

Ngwira said the previous fair also facilitated soya bean supplies worth K3.5 million a month, the opening of more than 80 bank accounts in three days and growth opportunities for small and medium enterprises through networks, advice and funding.

Minister of Agriculture, Irrigation and Water Development Roza Mbilizi, who was the guest of honour, said Malawi must move beyond simply producing more commodities and focus on earning more from what it produces through agro-processing, stronger market linkages and investment in storage, packaging and logistics.

She said the shift will require closer links between farmers, processors, buyers, exporters and financial institutions, with the private sector playing a critical role in investing in production, mechanisation, irrigation, processing, storage and marketing.

“Government alone cannot do it,” said Mbilizi, calling for greater private sector participation to turn agricultural production into profitable businesses and help drive the industrialisation ambitions under Malawi 2063, the country’s long-term development plan that seeks to turn Malawi into a lower middle-income economy by 2030 and upper middle-income status by 2063.

Dedza-based Atecko Investment and Bee-Keeping managing director Vincent Malinga, said limited financial resources have constrained the company’s efforts to expand.

He said foreign exchange scarcity is also affecting production of their honey wine as the company relies on imported bottles.

The agriculture fair is being held under the theme ‘Transforming agriculture through innovation, value addition and market linkages’.

The fair has attracted 77 exhibitors in input supply, agro-processing, farmer organisations, research, livestock and business services, according to MCCCI.

The opening day featured informal buyer-seller meetings, giving farmers and SMEs an opportunity to pitch their products to processors, financier and export while the second day will be anchored by the agribusiness forum and tomorrow will focus on value addition, agro-processing and agribusiness development.