Pay up! Court tells mega farmers

The High Court of Malawi has discharged an injunction 48 mega farmers obtained on behalf of 800 others barring Malawi Agricultural and Industrial Investment Corporation (Maiic) from recovering overdue loans.

The judgement High Court of Malawi Commercial Division Judge Trouble Kalua delivered in Lilongwe on August 28 2026 effectively clears the way for Maiic to resume recovery of public funds the mega farmers obtained under the government’s Mega Farm Initiative.

Kalua: There were loan agreement. | Nation

In his ruling, the judge said records showed that loan agreements existed between the 48 claimants and Maiic and that the loans were overdue after the claimants defaulted on their repayment obligations.

The court also found that Maiic had already commenced recovery efforts over the outstanding amounts.

Kalua said while there was a serious question to be tried, damages would be an adequate remedy and that the balance of convenience favoured discharging the July 9 2026 injunction that tied Maiic’s hands.

Leading the farmers: Madhlopa. | Nation

In an interview yesterday, lawyer representing the mega farm claimants Chimwemwe Kalua said he would first meet his clients to discuss the judgment before deciding on their next legal course of action.

The order followed sworn statements by Mega Farmers Union chairperson Vasco Madhlopa, Clifford Sendeza, Risco James Moyo, Elias Jumbo Mbezuma, Alfred Cedric Kapota Kutengule and Alfred Masanya, who represented the affected farmers.

The farmers argued, among other grounds, that their crops were insured and that the insurance was expected to cover losses arising from adverse weather conditions, including those experienced during the 2024/25 farming season.

Madhlopa was not immediately available for comment yesterday as his phones were unreachable.

However, in July, he said the farmers represented in the case collectively owed about K55 billion to Maiic in unpaid loans dating back to the 2024/25 farming season.

Maic chief executive officer Lloyd Banda is on record as having said the corporation was served with three similar injunctions by other groups seeking comparable relief, all of which were eventually vacated after Maiic presented its arguments before the courts.

In March this year, the mega farmers threatened to sue government, demanding K500 million each in compensation after accusing Minister of Agriculture, Irrigation and Water Development Roza Mbilizi of defamation over the public announcement of their names and loan amounts in Parliament.

During the 2024/25 farming season, 1 038 farmers were contracted through the Mega Farms Unit, each required to have at least 20 hectares for crop production. Of the 1 038 farmers, 855 grew maize, with the Mega Farm Support Unit investing K62 billion in partnership with Maiic.