Malawi: Malawi Seeks Stronger Partnership With Ifad to Accelerate Rural Transformation

Malawi's Minister of Local Government and Rural Development, Ben Malunga Phiri, has reiterated the need for Malawi to bank on greater collaboration with its development partners in transforming rural livelihoods.

He was speaking during a bilateral meeting with the President of the International Fund for Agricultural Development (IFAD) Dr. Álvario Lario on the sidelines of the United Nations High-Level Meeting on the New Urban Agenda in New York.

The meeting focused on the implementation of the Transforming Agriculture through Diversification and Entrepreneurship (TRADE) Programme, its achievements, future financing, and opportunities for expanding IFAD's support to Malawi's agricultural transformation agenda.

The minister expressed profound appreciation to IFAD for its continued partnership with Malawi, describing the institution as a trusted development partner that has significantly contributed to rural transformation, agricultural commercialization, and poverty reduction.

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He recalled that he had the honour of signing the TRADE Programme Financing Agreement in Rome, Italy, in 2020 on behalf of the Government of Malawi and was pleased to witness the progress the programme has made.

He further informed the IFAD President that although the programme experienced implementation challenges during its initial years, significant improvements had been made since September 2025 following the introduction of an implementation acceleration plan. He noted that the programme had gained momentum, with increased implementation of infrastructure projects supporting agricultural value chains.

He highlighted that the TRADE Programme has successfully financed rural roads, warehouses, bulking centres, and is currently supporting the construction of seven Rural Growth Centre Markets. According to the Minister, these investments are improving market access for farmers, reducing post-harvest losses, creating employment opportunities, and promoting local economic development.

The Minister emphasized that Malawi remains an agriculture-based economy but aspires to transition towards agro-processing, manufacturing, and value addition. He observed that the country's youthful population presents enormous opportunities if supported through investments that create jobs and strengthen agricultural value chains. He further explained that expanding local production and processing would reduce dependence on imports, conserve foreign exchange, and contribute to economic recovery.

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Recognizing the progress made under the TRADE Programme, the Minister requested IFAD's continued support through approval of Malawi's request for a No-Cost Extension and Additional Financing of approximately US$30 million. He explained that the additional resources would enable the Government to complete the construction of the seven Rural Growth Centre Markets and maximize the programme's development impact.

The Minister also proposed the development of a second phase of the TRADE Programme to further unlock Malawi's agricultural potential through expanded investments in value chains, rural infrastructure, agro-processing, climate-smart agriculture, and youth employment.

He then assured the IFAD President that the Government of Malawi remains committed to strengthening programme implementation and delivering tangible development results. He noted that the Ministry of Local Government and Rural Development would continue providing close oversight to ensure timely implementation of all remaining activities.

In response, the President of IFAD commended Malawi's vision of promoting value addition and agricultural commercialization, noting that these priorities align closely with IFAD's global mission. He acknowledged the progress achieved under the TRADE Programme and reaffirmed IFAD's commitment to supporting Malawi's development agenda.

The President further encouraged stronger partnerships with the private sector, particularly small and medium enterprises operating within agricultural value chains, and highlighted the importance of innovative financing mechanisms, including development guarantees, to unlock greater investment.