By Suleman Chitera
Lilongwe, Malawi — In a unified call to action, Malawi’s Minister of Finance, Simplex Chithyola Banda, and Minister of Agriculture, Sam Dalitso Kawale, have urged commercial banks and microfinance institutions to introduce tailor-made financing solutions specifically designed for the agriculture sector. The ministers made this appeal on Saturday night during the National Product Magazine (NPC) Mid-Year Awards ceremony held at the Bingu International Convention Centre (BICC) in Lilongwe.
Speaking to a gathering of business leaders, entrepreneurs, and policymakers, Minister Chithyola Banda stressed that agriculture remains the backbone of Malawi’s economy, and boosting productivity in the sector is vital for the country’s broader economic reforms.
“We are encouraging financial institutions to develop innovative agricultural finance models that meet the unique needs of our farmers and agribusinesses. This is critical if we are to generate more foreign exchange and drive the export-led growth Malawi desperately needs,” said Chithyola Banda.
Echoing these sentiments, Agriculture Minister Kawale highlighted that access to financing remains one of the biggest barriers facing farmers and agribusinesses in the country. He said that with the right financial tools, smallholder farmers could graduate into commercial producers, increasing output and feeding into value chains that benefit other sectors such as transport and manufacturing.
“Banks and microfinance institutions must come to the table with practical, inclusive financing solutions. Agriculture should not be seen as high-risk but rather as high-potential. With strategic financing, we can transform our economy from the soil up,” Kawale stated.
The ministers both emphasized that agriculture has untapped potential to significantly contribute to Malawi’s exports and foreign currency reserves if properly supported. They noted that increased financing
