1 AGRICULTURAL INVESTMENT PAY- AGRICULTURAL INVESTMENT PAY- OFFS – THE MALAWI CASE OFFS – THE MALAWI CASE Idrissa M. Mwale [email protected]Ministry of Agriculture – MALAWI. Presentation made at Partnership to cut hunger and poverty in Africa Capital Street, Washnigton DC 12 May 2009 Chaired by: Dr. Derek Byerlee – Author, 2008 World Development Report
37
Embed
AGRICULTURAL INVESTMENT PAY-OFFS – THE MALAWI CASE
AGRICULTURAL INVESTMENT PAY-OFFS – THE MALAWI CASE. Idrissa M. Mwale [email protected] Ministry of Agriculture – MALAWI. Presentation made at Partnership to cut hunger and poverty in Africa Capital Street, Washnigton DC 12 May 2009 - PowerPoint PPT Presentation
This document is posted to help you gain knowledge. Please leave a comment to let me know what you think about it! Share it to your friends and learn new things together.
Transcript
1
AGRICULTURAL INVESTMENT AGRICULTURAL INVESTMENT PAY-OFFS – THE MALAWI PAY-OFFS – THE MALAWI
Partnership to cut hunger and poverty in AfricaCapital Street, Washnigton DC
12 May 2009Chaired by: Dr. Derek Byerlee – Author, 2008
World Development Report
OVERVIEW OF MALAWI Malawi’ population – 13.1 million Land area - 118,484 km2 Per capita income: US$170 (2006) – one of the
lowest Agriculture – economy agro-based
Over 80% of export earnings Contributes 38% GDP Supports 85% the population
Smallholder farming (3.4 million) – 75% of agricultural production
Dominated by rain-fed maize farming. 2
SECTORAL POLICIES
Mandate of the Ministry of Agriculture: to promote and accelerate broad-based, sustainable agricultural development policies to enhance economic growth and contribute to poverty reduction
Farm Input Subsidy Programme is one of them.
3
4
Main Goal for ISP
The main objective of ISP Improve national food security
The immediate objective Improve accessibility and affordability
of agricultural inputs among the most vulnerable farmers in the country
BACKGROUND TO FISP
Dry prolonged spells 2004/2005 season - January and February 2005.
Reduced maize production – average yield dropping to 0.8 tons per ha.
Total maize production reduced to 1.22 million tons, approx 60% of the estimated national maize food requirement.
5
BACKGROUND TO FISP - cont
Government decision – improve smallholder farmers’ access to inputs
Fertilizer and improved hybrid and OPV maize seed – to improve food security
Tobacco farmers to improve rural economies
Legume (Groundnuts, soya, beans) for household nutrition and economic empowerment
BENEFICIARY IDENTIFICATION Criteria for beneficiary identification include:-
A Malawian that owns a piece of land Vulnerable household, with low purchasing power Guardian looking after physically challenged persons who are
unable to farm Hard working household Adopter of new technologies Resident of the village The vulnerable group – child headed household, female
headed household, elderly but hard working household
A combination of this is used in identifying the beneficiaries One beneficiary per household will registered
BENEFICIARY MATRIX Compilation of all farm families
Village data District data National database
Two factors are used: Number of farm families Land area (Previous demand for a particular inputs)
Develop beneficiary matrix Multi-sectoral teams established – process done in
open forum
9
TARGETING BENEFICIARIES
Use coupons to reach out to the beneficiaries Promotes transparency and accountability As a control measures Minimises parallel markets of the subsidised
inputs International standard tendering process Coupon printing based on beneficiary matrix Coupon have serial numbers and non-
transferable
10
PROCUREMENT OF INPUTS AND TRANSPORT SERVICES
Fertiliser procured under the International Competitive Bidding process – follow standard procedures
Transport services sourced locally Internal Procurement Committee
evaluate the tender documents Successful bidder sign a contract
with Government
DELIVERY & DISTRIBUTION OF INPUTS
Three channels are used as follows: Deliver the fertiliser to designated
warehouses in three main regions Deliver some contracted fertiliser and
retail part through the existing outlets Retail all the contract through the
existing retail outlets Most of the fertiliser is imported by
the private sector – over 80%
COUPON REDEMPTION Farmers free to use the coupons in any
recognised retail shop The Traders collects the top-up from the
farmer and the coupon Submit the coupons together with an
invoice to the Ministry Payment based on submitted coupons