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YEAR 5, QUARTER 3 REPORT

Feed the Future Ag Diversification Activity Contract: AID-612-H-16-00001

July 2021

Y5 QUARTER 3 ACTIVITY REPORT Feed the Future Malawi Ag Diversification Activity Contract: AID-612-H-16-00001 July 2021

This publication was produced by Palladium for the review of USAID Feed the Future Malawi Ag Diversification Activity COR, Chrispin Magombo under Contract AID-612-H-16-00001.

CONTENTS

Contents ...... i Acronyms and Abbreviations ...... iii Executive Summary ...... 4 Outcome 1: Inclusive Growth of Agricultural Incomes and Employment ...... 5 Context and Approach ...... 5 IR1.2 Access to Markets Increased ...... 6 Promote Hermetic Storage Technology ...... 6 Creating Demand Through Satisfied Users ...... 6 Smallholder Farmers Trainings ...... 6 Village Agents Orientation Meeting ...... 6 HP+ Youth Entrepreneurs Training ...... 7 World Food Program Collaborative Meeting ...... 7 PVC Beneficiary Follow Up Visit ...... 7 Last Mile Delivery of Hermetic Technology ...... 7 IR 1.4: Production of Target Commodities Increased ...... 8 Smallholder Production under Irrigation ...... 8 Innovation Labs ...... 8 Soybean and Groundnut Inoculant Spot Checks ...... 9 Outcome 2: Resiliency of Smallholder Farming Systems Strengthened ...... 10 World Earth Day Commemoration Event ...... 11 IR 2.1. Adaptive Capacity of Smallholder Farmers Increased ...... 11 Bamboo Seedlings Update ...... 11 Resilient Village Sites ...... 12 Resilience Watershed Sites Activity Report ...... 13 Water Board ...... 13 MICF Visit to Watershed Sites ...... 14 Mission Director’s Visit to Watershed Sites ...... 14 Resilience Youth Clubs ...... 14 DEC Meeting ...... 14 Backyard Garden and Drip Kit integration designs ...... 14 Success Story: Diversifying Livelihood Options Through Drip Irrigation ...... 16 Resilience Challenge Fund ...... 17 Bicycles as an Alternative for Agricultural Mobility ...... 17 Outcome 3: Nutritional Status of Women and Children Improved ...... 18 IR 3.1. Access to and Consumption of Diverse and Quality Foods Increased ...... 19 Soymilk Processing and Business Management Training ...... 19 Success Story: Soy for Social Good ...... 20 AWE Soy Kit Impact Evaluation...... 21

i SIL Soy Kit Impact Evaluation ...... 21 OFSP Spot Checks ...... 21 Input Loan Post-Harvest Survey ...... 21 Food Processing, Safety, Hygiene, and Utilization Training ...... 21 Outcome 4: Women Empowered ...... 23 Context and Approach ...... 23 GALS Training ...... 24 Financial Literacy and Business Skills Trainings ...... 24 Capital Injections ...... 25 Success Story: Enhancing Women Empowerment Through Flexible Loans ...... 26 WOLREC Village Agents Meeting ...... 27 WOLREC Activities under the new grant ...... 27 Cross Cutting ...... 27 AWE Evaluation of the Impact of Soy Kits on Women’s Empowerment ...... 27 Collaborating with HP+ on GALS Trainings for Youth ...... 27 Modern Cooking, Healthy Forests ...... 28 Innovation Labs ...... 28 Agriculture Commercialization Project ...... 28 Bicycles as an Alternative for Agricultural Mobility ...... 28 Political Economy Analysis ...... 28 Earth Day Celebrations ...... 29 National Agriculture Content Development Committee ...... 29 Monitoring and Evaluation ...... 30 Inoculant Recipients Spot Checks ...... 30 PMI Diversification Impact Evaluation ...... 30 High Frequency Resilience Data Collection ...... 31 AWE Evaluation of the Impact of Soy Kits on Women’s Empowerment ...... 31 Cost Benefit Analysis ...... 31 Ag Finance Market Systems Impact Assessment ...... 32 M&E Partnerships Under Development ...... 32 Political Economy Analysis Project ...... 32 Private Sector Coordination on Research, Policy Development and Advocacy ...... 32 Annex A: Year 5, Quarter 3 performance Indicator results Table ...... 33 Annex B. Environmental Compliance and Construction Update ...... 41 Feed the Future Malawi Ag Diversification Activity Pesticide Safer Use Action Plan & Compliance Track ...... 41 Annex C. Tobacco Policy Drip Irrigation Monitoring Report ...... 46 Drip Kits and Crops Summary Report ...... 46 Potential Violations/Corrective Actions...... 46 Background Information on Pyxus Irrigation Collaboration ...... 46 Background Information on UVCG Irrigation Collaboration ...... 46

ii ACRONYMS AND ABBREVIATIONS

AEDO Agricultural Extension Development Officer AgDiv Feed the Future Malawi Ag Diversification Activity AIP Affordable Inputs Programme ATCC Agricultural Technology Clearing Committee AWE Advancing Women’s Empowerment CHC Catholic Health Commission CIP International Potato Centre CoFi Community Finance COVID-19 Coronavirus Disease 2019 CYECE Centre for Youth Empowerment and Civic Education CSA Climate Smart Agriculture DARS Department of Agriculture Research Services DCA Development Credit Authority EPA Extension Planning Area FCB First Capital Bank FRIM Forestry Research Institute Malawi GALS Gender Action Learning System GAP Good agricultural practices LUANAR Lilongwe University of Agriculture and Natural Resources M&E monitoring and evaluation MCHF Modern Cooking, Healthy Forests OFSP Orange-fleshed Sweet Potato PAVT Pan-African Varietal Trials PICS Purdue Improved Crop Storage RCF Resilience Challenge Fund SIL Soybean Innovation Lab USAID United States Agency for International Development UVCG Universal Ventures Cannon Garth (formerly Limbe Leaf Tobacco Company) VSL Village Savings and Loan WBR World Bicycle Relief WOLREC Women's Legal Resources Centre

iii EXECUTIVE SUMMARY

Activity goals and objectives: The Feed the Future Malawi Ag Diversification (“AgDiv”) Activity’s objectives are: 1) fostering sustainable and inclusive agriculture growth by creating systemic change in agricultural systems 2) promoting household and community resilience to the shocks and stressors that most affect smallholders; 3) promoting enhanced demand for and access to diverse and nutritious food throughout the year; 4) promoting women’s economic empowerment through an inclusive approach that also drives men’s involvement and participation; and 5) co-location, coordination, and collaboration with existing donor-funded, private, and public sector initiatives that have similar objectives. AgDiv uses a market systems-cognizant approach to catalyze improved competitiveness, inclusivity, and resilience in Malawi’s agricultural market systems. AgDiv targets smallholder farmers who - while generally below the poverty line - have the ability to cultivate at least 0.5 – 2 hectares of land and to diversify into commercial production of higher value commodities. AgDiv also works with commercial farmers within the target value chains of soybeans, groundnuts and orange fleshed sweet potato (OFSP), with the aim of bringing smallholder and emerging farmers into commercially oriented activities and strengthening linkages between commercial and smallholder farmers. Year 5, Quarter 3 Highlights: Quarter 3 covers the period between April – June, when farmers in Malawi are harvesting, storing, and selling agricultural produce. In this quarter, much of AgDiv’s work focused on monitoring and strengthening agricultural post-harvest activities. In April, AgDiv conducted inoculant spot checks. In May through June, AgDiv intensified promotion of post-harvest storage technologies and Gender Action Learning Systems (GALS) trainings for households that previously received input loans. The GALS trainings were deliberately scheduled for this period to help households jointly plan for incomes realized from agricultural sales. The project is increasingly working with the top levels of Malawi government to promote sustainable, market-driven approaches that lead to wealth creation and improve food security and nutrition in Malawi. On Earth Day, in April, AgDiv collaborated with the Ministry of Forestry and Natural Resources to host a symbolic bamboo and tree planting event at Area 25 Health Centre in Lilongwe. The event was attended by the Minister of Forestry and Natural Resources, Honorable Nancy Tembo, and US Ambassador, Robert Scott. More details on these and other activities can be found in the following report.

4 OUTCOME 1: INCLUSIVE GROWTH OF AGRICULTURAL INCOMES #1 largest producer of AND EMPLOYMENT groundnut seed in Africa

Context and Approach The Feed the Future Malawi Ag Diversification (AgDiv) Activity contributes to United States Agency for International Development (USAID)/Malawi’s Feed the Future goal of sustainably reducing poverty and stunting in eight districts of Central and Southern Malawi. The Activity seeks to increase the 90% + competitiveness of high-value, nutrient-rich value chains through support for germination rate agricultural enterprises, and increased access to markets and finance. It also aims to foster inclusive and sustainable growth of Malawi’s agriculture sector and to improve the nutritional status of women and children under five through a proven nutrition-sensitive approach of layering agriculture and nutrition behavior change interventions in rural communities. During Quarter 3, AgDiv intensified promotional activities for post-harvest hermetic storage, continued providing support to smallholder irrigation schemes, and conducted monitoring activities for inoculant and OFSP. 19,000ha Highlights of Outcome 1 interventions for Quarter 3 are as follows: under cultivation with improved seed

5 IR1.2 Access to Markets Increased Promote Hermetic Storage Technology Increasing demand and use of hermetic storage technology is a key part of AgDiv’s strategy to increase food security in Malawi. With each 50kg bag sold, an estimated 5-10kg of grain is saved - increasing the amount of food available for consumption or sale at the household level and contributing to a larger local supply of grain. Since the beginning of AgDiv, sales of Purdue Improved Crop Storage (PICS) bags have risen from 60,000 per year to over 800,000 per year. With more than 1.8 million bags now in circulation, hermetic storage is protecting over 113,000 mt of grain from pest infestation each year and has prevented the loss of an estimate 23 million kilograms of grain since the beginning of AgDiv. In February, the Agriculture Technologies Clearing Committee (ATCC) approved the release of a new hermetic storage technology – the Agro-Z bag – which was developed by A-to-Z Textiles, a former USAID Partner for Innovation. With two hermetic storage bags on the market, farmers will now have greater options and an improved supply of the technology. However, there is still lack of awareness about the effectiveness and usage of the technology. In this quarter, AgDiv focused on intensifying awareness of the hermetic technology and of the two approved brands. Hermetic Storage Promotional Campaign Following the launch of the 2021 harvest season, in partnership with the Ministry of Agriculture, AgDiv rolled out a campaign to promote hermetic storage through radio, social media, and newspaper messaging. Among others, AgDiv introduced a newspaper ad campaign featuring a picture and quote from the Minister of Agriculture, encouraging farmers and aggregators to adopt the technology. The ad – which ran every Monday for four weeks, from mid-May through June – targeted the high and middle income urban and semi-urban farmers and aggregators, who traditionally also support their rural farming relatives with agricultural inputs. A short video of the Minister of Agriculture promoting the technology was also shared through the AgDiv Facebook page and WhatsApp groups. The Agriculture Minister’s message on hermetic technology was also aired on Zodiak radio, through the Farm Radio Trust (FRT) programs. A COPY OF THE HERMETIC CAMPAIGN AD Creating Demand Through Satisfied Users PUBLISHED IN THE DAILY TIMES NEWSPAPER One of the most effective marketing strategies that AgDiv uses to increase demand for hermetic storage has been the distribution of sample bags to farmers and associated bag opening ceremonies that allow the whole community to experience the effectiveness of the technology. In 2021, AgDiv has planned to distribute a single sample bag to 100,000 farmers that have not previously been exposed to the technology. During the month of April, AgDiv worked with partners - including NGOs, private sector players, and the Ministry of Agriculture - to develop a hermetic bag distribution plan that will reach up to 15 percent of households in target Extension Planning Areas (EPAs). Beneficiaries were selected based on gender and willingness or capacity to store grains in the hermetic bags for at least three months. Smallholder Farmers Trainings In May, AgDiv conducted training for 754 farmers from that had not been previously exposed to hermetic technology. Each farmer was provided with a sample bag for demonstration and training on usage and effectiveness. The trained farmers will help create further demand in their communities through bag opening ceremonies that will be facilitated by Agriculture Extension Development Officers (AEDOs) over the next 6 to 9 months. Village Agents Orientation Meeting AgDiv organized an orientation workshop for village agents under Women Legal Resource Center (WOLREC) from Mulanje, Thyolo, Dedza, Mchinji, Nsanje, Chikwawa, Lilongwe and Rumphi Districts. During the workshop, participants were trained on different productivity-enhancing interventions being

6 promoted by AgDiv, including the usage and benefits of the hermetic storage technology. The trained agents are expected to further train other households in their respective communities. HP+ Youth Entrepreneurs Training As part of its youth empowerment activities, HP+ is engaging youth clubs in in entrepreneurial activities, including agribusinesses. The clubs produce crops such as maize, groundnuts, soybeans, rice, and vegetables, among others. HP+ partnered with AgDiv to train 30 youth leaders selected from the clubs on using hermetic bags to protect their harvest from loss. Government partners from the Ministries of Youth and Agriculture at the District and EPA level were also trained so that they may continue providing technical support to the clubs. The trained leaders are expected to cascade the message to their respective club members. The trainees each were given a sample bag for them to observe the effectiveness of the technology. World Food Program Collaborative Meeting In June, AgDiv had a meeting with World Food Programme (WFP), a long-standing partner in the promotion of hermetic bags, to identify operational synergies. During the meeting, it was discovered that AgDiv is implementing similar hermetic technology programs in the same districts as WFP, excluding Zomba. To rectify the overlaps, it was agreed that AgDiv would provide WFP with a list of target Traditional Authorities (TA)s and Group Village Headmen (GVH)s so that WFP can prioritize beneficiaries outside AgDiv’s scope. The two organizations also agreed to work together in evidence generation and development of policies to facilitate an enabling environment for private sector engagement. PVC Beneficiary Follow Up Visit In 2018, AgDiv partnered with American Peace Corps Volunteers (PCVs) to promote PICS bags, mini drip kits, and bamboo in PCVs’ target communities. Through the partnership, AgDiv trained PCVs and their beneficiary communities in Nkhatabay district on the use of PICS bags, after which 50 PICS bags were distributed. In June, AgDiv conducted a follow-up visit to assess the adoption rate of PICS bags in the target communities. Interactions with 15 of the beneficiaries proved that communities were impressed by the technology and are willing to adopt it. Among other testimonies, farmers who received one demonstration bag each were impressed enough to buy extra bags and are now averaging 10 bags. Some farmers who only witnessed the effectiveness of the technology through bag opening ceremonies also bought some for their households. It is interesting to note that most of the farmers were using the bags for storing rice, and they testified that it helps preserve flavor, enabling them to sell at higher prices. Last Mile Delivery of Hermetic Technology AgDiv promotes the use of hermetic bags through a combination of demand generation and supply strengthening activities. On the demand side, AgDiv conducts mass media campaigns, trainings on bag use, and sample bag distributions. On the supply end, AgDiv works with suppliers to identify new distribution channels and develop partnerships with community-based agro-dealers and farmer cooperatives to expand last mile availability to farmers in rural areas. With this year’s maize harvest expected to reach record quantities due to the consistent rains and the affordable input program (AIP), hermetic storage will be critical in translating production gains into food security. In April, United Purpose (UP) began training agro-dealers on use of hermetic bags. The trainings incorporated the newly introduced Agro-Z bag in addition to PICS bags. In May, AgDiv identified and engaged the European Union funded KULIMA project to help introduce hermetic bags in the northern district of Mzimba. 22 sites have been identified for on-farm demonstrations, where 10,000 smallholder farming households are expected to be reached with sample Agro-Z bags. KULIMA project will integrate Agro-Z bag demonstrations in its Farmer Field School (FFS) approach. This will simplify organization of bag opening ceremonies, data collection, trainings, and other associated follow-up activities. AgDiv intends to expand its reach in the Resilience Challenge Fund (RCF) districts of Thyolo, Mulanje, Chikwawa, and Nsanje in the subsequent growing season. In preparation for the expansion, 79 government AEDOs and partner frontline officers were reached with training of trainer activities in June. In 2020, only a few EPAs participated in hermetic storage demonstrations. This year, the activity will extend to the rest of the EPAs in the RCF districts where winter production is high and farmers might

7 start benefiting from the technology immediately. Meanwhile, the trained trainers have already reached a total of 133 farmers (76% females) with messages on the benefits and usage of PICS bags.

IR 1.4: Production of Target Commodities Increased Smallholder Production under Irrigation Chikwawa and Nsanje are perennially food insecure districts. Yearly drought and flooding make it hard for farmers to produce enough to meet their food and income needs. To address the situation, AgDiv has partnered with private sugar companies Illovo and Agricane, which are economic growth engines in the districts, to leverage their technical knowledge, long-term relationships with communities, and bulk water systems to develop irrigation schemes. These partnerships and resulting initiatives will give farmers in the two districts opportunities to not only diversify into new crops such as soybeans, groundnut, and beans, but also to grow crops more than once a year, thus improving their resilience to drought, flood, or other shocks.

In April, beneficiary farmers at RCF-supported Chivula and Kalima irrigation schemes in began harvesting their first crop of the season. The two irrigation schemes were critical this season, as Chikwawa experienced severe mid-season droughts. Farmers were responsible for selecting and sourcing inputs for the crops grown. The most common crops grown were maize and rice, with the rice harvests looking promising. Though the maize harvests were negatively impacted by the Fall Army Worm, the schemes were able to work with the local EPA extension agent to mitigate the effects. For the 2021 winter season, Agricane has secured a sugar bean contract for farmers at the Chimvuli, Kalima, Phata, and Kasinthula schemes. Under this contract, Grain Securities Limited is offering an offtake agreement and seed on credit. Innovation Labs On April 27th AgDiv and the Feed the Future Soybean Innovation Lab (SIL) hosted a webinar to highlight their collaboration in Malawi. The webinar focused on the linkages that SIL and AgDiv have created with the Department of Agricultural Research Services, and the Malawian private sector, and how these relationships have accelerated the introduction and commercialization of soybean varieties with qualities in demand from farmers and off-takers. The webinar included presentations on the Pan-African Varietal Trials (PAVT), the SMART Farm Trials, and a presentation by the SIL Director, Dr. Peter Goldsmith on the macro-economic impact of the soy value chain. Good Nature Agro and Japanese Tobacco International Malawi led presentations from the private sector perspective.

On May 18th and 19th, AgDiv participated in a two-day USAID Innovation Labs Virtual Partners Meeting to discuss impacts made and how the Innovation Labs can better respond to Mission and in- country project needs. AgDiv’s multi-sectoral approach was highlighted as the best practice for delivering impacts during the meeting, which was comprised of delegates from the Innovation Labs, the USAID Mission, and USAID Bureau for Resilience and Food Security.

On May 28th, SIL held a training with the Department of Agricultural Research Services (DARS) and private sector partners to start preparations for winter trials for both the PAVT and the SMART Farm Trials. Private sector participants included Pyxus, IITA and SIL.

In June, AgDiv gave presentations on Innovation Lab (IL) partnerships at two events – the 2021 USAID Peanut Innovation Lab’s Annual Research Meeting (ARM), and the United States Department of Agriculture’s (USDA) Expert to Expert Dialogue series. At the Peanut Innovation Lab’s ARM, AgDiv was invited to discuss the unique partnership between AgDiv and the Peanut Innovation Lab. In addition to the presentation, AgDiv also facilitated a breakout room on the same topic. At the USDA dialogue series, which was also part of the 2021 UN Food Systems Summit, AgDiv joined SIL to discuss how SIL innovations impact global food security by highlighting the SMART Farm research trials and how AgDiv has helped scale the research in Malawi.

8 Soybean and Groundnut Inoculant Spot Checks During Quarter 1, AgDiv distributed 54,000 sample packages of inoculant for soybean and groundnut to farmers in Blantyre, Mangochi, Machinga, Ntcheu, Dedza, Lilongwe, and Mchinji for demonstration purposes. These demonstrations are one of the ways in which AgDiv generates demand for the technology – by giving farmer an opportunity to observe the benefits of inoculant first-hand. In April, AgDiv conducted inoculant spot checks with farmers that received groundnuts and soybean inoculant in the seven districts. The main aim of the activity was to verify if farmers THE AGDIV TEAM INTERACTS WITH INOCULANT BENEFICIARIES DURING A SPOT-CHECK MEETING IN LOBI received and used the inoculant in their EPA, groundnut and soybean fields. The exercise was also an opportunity to identify successes and challenges with the inoculant distribution program. This activity was initially planned for January, but since it required in-person meetings with many individuals, AgDiv postponed this activity to March due to Covid-19, and concluded the activity in April.

Farmers expressed satisfaction with how inoculants have helped increase their groundnut and soybean yields. Many farmers indicated that inoculated fields had less disease and insect infestation, and thus healthier plants, good germination percentage, and a lack of shriveled nuts. Many farmers in the communities where demonstrations took place but who had not received inoculant showed interest in purchasing it in future seasons.

9

OUTCOME 2: RESILIENCY OF SMALLHOLDER FARMING SYSTEMS STRENGTHENED

Under Outcome 2, AgDiv takes a comprehensive approach to integrating soil, water, and nutrient management with improved agriculture technologies, Good Agriculture Practices (GAP), and storage to help improve agricultural resilience to potential climate shocks, including irregular rainfall and temperature fluctuations. At the community level, AgDiv is promoting resilient households and resilient villages as part of a watershed management model. This model will improve agricultural resilience and model best practices in watershed management to surrounding communities. 500,000 In Quarter 3, AgDiv worked with partners to monitor the performance and bamboo seedlings survival rate of the 500,000 bamboo seedlings distributed this year, and how planted in Year 5 communities and partners are integrating bamboo and their resilience strategies to strengthen agricultural productivity and watershed management. Highlights of Outcome 2 interventions for Year 5, Quarter 3 are as follows:

10 World Earth Day Commemoration Event

HON NANCY TEMBO AND AMBASSADOR SCOTT, COMMEMORATE EARTH DAY WITH A SYMBOLIC PLANTING OF GIANT BAMBOO AT THE AREA 25 HEALTH CENTRE IN LILONGWE

To commemorate this year’s World Earth Day, AgDiv and the Ministry of Forestry and Natural Resources co-hosted a symbolic bamboo and tree planting event at the Area 25 Health Centre in Lilongwe. The Health Centre, a public-private partnership between Baylor Malawi and the Ministry of Health, has grown over the past two years as a demonstration site for AgDiv technologies, including soya milk, mini drip kits, large drip kits, bamboo, and PICS bags.

During the event, the Minister of Forestry and Natural Resources, the Honorable Nancy Tembo and the US Ambassador, Robert Scott, both planted giant bamboo seedlings at the site to symbolize the partnership between the Government of Malawi and the Government of the United States in restoring natural landscapes in Malawi. The Minister and the Ambassador also handed over a seedling pack containing an indigenous tree, a bamboo, a fruit tree, and a moringa tree, to two waiting home patients and two new mothers. The event was attended by representatives from the Ministry of Health, Baylor Malawi, USAID, AgDiv, and Ministry of Environment and Natural Resources.

IR 2.1. Adaptive Capacity of Smallholder Farmers Increased Bamboo Seedlings Update The introduction of bamboo is a key element of AgDiv’s resilience strategy. Since 2018, AgDiv has distributed about 1,000,000 bamboo seedlings. This year alone, AgDiv has distributed 500,000 seedlings (400,000 with funding from USAID and 100,000 with funding from the Agricultural Transformation Initiative). During Quarter 3, AgDiv conducted follow-ups with partners to find out whether farmers followed the design methods during the planting period; to learn whether trainees cascaded trainings to the grassroots level; discuss sustainable management plans following the end of the rainy season; and find out how bamboo is being integrated into communities’ ecological and social well-being strategies. In April, AgDiv visited CADECOM in Machinga, UP in Balaka, Shire Best in Neno, and the Department of Forestry in , with a total of 20 households visited across all partners. In May, AgDiv visited Peace Corps sites in Mchinji, Taakaful Cooperative Society Limited and Feed the Children in Lilongwe, and Farmers Union in Dedza, where it held focus group discussions with

11 beneficiaries and trained communities on how they can properly manage and take care of bamboo seedings in the dry season. In June, AgDiv continued with partner engagement activities to intensify partner collaboration. In the first and second week of the month, AgDiv engaged Feed the Children and Eden by Design in Lilongwe and Kasungu, respectively. Feed the Children is working with various mother care groups to promote best nutrition practices amongst pregnant and lactating mothers and children under 5. Through the partnership with AgDiv, Feed the Children received a total of 8,000 bamboo seedlings. Eden by Design is working with farmers within and around tobacco farming communities in to address problems of deforestation and land degradation through community woodlots and capacity building initiatives. Through the partnership with AgDiv, Eden by Design received a total of 8,000 bamboo seedlings, which were distributed to 790 beneficiaries and were planted around households, fields, and woodlots.

AgDiv observed that there was limited transfer of knowledge from the Training of Trainers to individual beneficiaries. This was due to limited resources and the Covid-19 situation, which kept partners from conducting trainings during the period when most beneficiaries were planting their seedlings. Additionally, the teacher strikes and school calendar disturbances due to Covid-19 affected the management of seedlings planted in school woodlots. AgDiv also observed that seedlings planted along riverbanks and in households were doing well, while those planted in woodlots were not showing as much growth. Beneficiaries also highlighted wildfires and goats as a threat to successful growth of the seedlings, especially in the present season where farmers have harvested their crops, and the risk of fires and goat damage are high. Community sensitization on the need for fires breaks in community by-laws were proposed as solutions to the problems. Northern Partners AgDiv implemented similar activities with Modern Cooking, Health Forests (MCHF), Peace Corps, and the government’s Forestry department partners in the northern district of Mzimba and Nkhata, as well as Mzuzu City. During the visits, beneficiaries expressed interest in planting more bamboo owing to its easy management, fast growth, and regenerative nature. According to Mzuzu City Deputy District Forestry Officer Temwanani Nyirenda, there is rising demand for bamboo seedlings in the city, with some individuals looking to establish nurseries. In Mzimba, most of the seedlings were planted in school and community woodlots, while some were given out to individuals. In Mzuzu, most of the bamboo was planted around households and fields as borders. Some individuals even planted the seedlings in personal woodlots and orchards. AgDiv also had a meeting with partner field officers from Karonga, Rumphi and Nkhotakota districts in Mzuzu City to train them on resilience and bamboo integration. There were no serious challenges reported, apart from logistical hiccups in transporting seedlings to remote sites, which resulted in delays in planting. Unlike in the central districts, the northern districts were still receiving rains, enabling the seedlings to grow much faster. Resilient Village Sites Focus Group Discussions In 2020, AgDiv expanded its work with UP to promote the protection and restoration of hills in watershed areas. In Dedza district, AgDiv is working in partnership with the Department of Forestry to restore eroded land and gullies in areas surrounding Chongoni Hills. In April, AgDiv partnered with UP to conduct a series of focus group discussions with communities around the Chongoni resilience watershed site to understand their perception of different interventions being implemented and learn if there are changes being observed as a direct result of AgDiv interventions. Three villages were chosen from each of the three catchment areas, for a total of nine focus group discussions. Data from the discussions is currently being processed. During the visit, AgDiv conducted monitoring of bamboo seedlings distributed in the area and impacts of several soil and water conservation interventions being implemented. Farmers in erosion-prone areas expressed satisfaction with the interventions, as the levels of soil erosion and gulley formation have reduced significantly. Existing gullies are also being reclaimed using check-dams that allow for deposition of soils and reduction of water flow. Timely distribution of the bamboo seedlings this year has resulted in a high survival rate. Seedlings from the previous years have produced a high number of shoots, reviving interest to plant bamboo among many farmers in the area.

12 In May, AgDiv and the Department of Forestry hosted sensitization sessions to build the capacity of community members to develop catchment management plans and to guide them to improve management of natural regenerative spaces and formulate policies and by-laws in support of the protection of forest and land resources.

Terraforming Activities – Deep Water Trenches and Riparian Zones After noticing that it is a big challenge to dig earth work structures in the dry season, catchment committees in AgDiv’s resilience sites agreed to work the earth while there is still moisture to ease the job. During the month of May, AgDiv worked with community members in the Chongoni Hills to construct 620 meters of deep-water trenches, 5 riparian dams, and 15 check-dams.

Learning Exchange Visits In May, AgDiv hosted Modern Cooking, Health Forests (MCHF) on a learning exchange visit to some of its resilience sites in the Chongoni Hills area of Dedza. MCHF Chief of Party Ramsy Kanaan and his team observed some of the catchment management interventions, including a bamboo buffer, that AgDiv has created in partnership with UP and local communities to protect the Chongoni Forest Reserve from rampant deforestation and downhill erosion, while promoting large-scale conservation. The team was impressed by the strong relationships that AgDiv and UP have cultivated with the communities, enabling community members to offer voluntary support to different catchment interventions being implemented in the area. Resilience Watershed Sites Activity Report During the quarter, AgDiv worked with partners to engage communities in areas targeted for watershed restoration –Dedza and – in various activities aimed at enhancing the resilience of their households and wider environments. 4,484 demonstration PICS bags were distributed to households selected from one EPA in Dedza and four EPAs in Balaka. Integrated watershed and catchment management activities, including construction of 6 swales, one 36-meter-long stone band, and the realignment of quarter acre ridges, have been completed in Dedza and Chongoni area during this quarter.

In collaboration with Dedza district Forestry Office, AgDiv has identified four sites for a natural tree regeneration exercise. AgDiv has also developed management strategies and plans that will be aligned with community bylaws.

Forty participants selected from communities around Chongoni Hills were given a refresher training in beekeeping. AgDiv also engaged nutrition volunteers to train 3,327 community members on preparation and utilization of nutritious foods made from OFSP, soya, and groundnuts. 60 new soy kit entrepreneurs, 17 from Balaka, and 43 from Dedza were trained on soymilk production and business management. Lilongwe Water Board In January 2021, the Lilongwe Water Board (LWB) identified barren land along the Lilongwe River, between Dzalanayama mountain range and its intake point to reforest with giant bamboo and indigenous trees. The Board intends to develop a buffer zone spanning 12km on each side of the river that will protect the river from siltation and address the problem of deforestation in the Dzalanayama Forest Reserve. In April, AgDiv visited the site twice to sensitize surrounding communities on the importance of protecting the area from grazing animals. As a result of the sensitization visits, communities agreed to keep their animals away from the area until the seedlings took hold. During the visit, AgDiv observed that most of the seedlings had survived due to good management and care rendered by LWB. As part of its commitment to the survival of the giant bamboo, LWB has hired a five people to maintain the land until the bamboo is established. Following the success of the site, LWB intends to plant bamboo and indigenous trees all the way down to the intake point, creating an ecological corridor that will protect the river and provide alternative fuel wood options to surrounding communities.

13 MICF Visit to Watershed Sites AgDiv bought the first 86,000 bamboo seedling for its resilience activities from Afribam in 2018. Afribam has been under a working grant from MICF since then. In June, AgDiv hosted MICF at watershed sites in Dedza to demonstrate how communities have benefited from the seedlings and to gain a better understanding of the seedlings’ performance in rural areas compared to commercial plantations. During these visits, MICF expressed interest in developing a buy-back scheme with beneficiaries, and AgDiv and MICF discussed plans to establish a bamboo cooperative to further enhance smallholders’ livelihoods. Mission Director’s Visit to Watershed Sites On June 3rd, the USAID Mission Director Catie Lott visited Chongoni watershed site in Dedza district to in recognition of the resilience work AgDiv has been doing with communities and to interact with catchment committee members. The Mission Director observed various landscape management interventions including swales, check-dams, a deep-water trench, and a bamboo buffer that AgDiv created in partnership with UP and local communities, to protect the Chongoni Forest Reserve from rampant deforestation and downhill erosion. She also visited natural tree regeneration sites, riverbank restoration initiatives, community woodlots, beekeeping sites, and soymilk entrepreneurs. She also observed household-level interventions, including a backyard garden with drip kits and improved cookstoves. Resilience Youth Clubs This year, to enhance the sustainability of resilience interventions, AgDiv and UP began engaging school-aged youths within the Chongoni catchments area to promote environmental resilience and create young environmental ambassadors. Through the initiative, schools will plant woodlots, orchards, and resilient nutritional gardens. Weekly environmental workshops will be conducted to educate youth on various topics that will promote environmental stewardship. Five schools were identified throughout the catchment, and each have 20 ambassadors, including a RESILIENCE YOUTH AMBASSADORS FROM CHONGONI, DEDZA community member and a teacher to oversee the groups. The clubs of ambassadors will be responsible for maintaining and watering seedlings planted in the woodlot, identifying sites for productive gardens, developing a garden design with their mentors, becoming environmental ambassadors, promoting environmental awareness, and organizing monthly waste management clean ups. DEC Meeting The local government structure in Malawi is such that every district has a technical body – District Executive Committee (DEC) – to provide guidance on development issues to the council. The DEC is chaired by the District Commissioner (DC) and has a membership of 50, including Heads of Departments at the council and district-level development partners. Every 3-4 months, a DEC meeting is called, where development partners present reports on their work at the district level. In June, UP, AgDiv’s implementing partner in Dedza district, gave a presentation on the resilience work that AgDiv is doing to reduce poverty, gender inequality, and stunting, to increase the adaptive capacity of smallholder farmers to respond to the impacts of climate change, and to directly improve their nutritional status. Backyard Garden and Drip Kit integration designs Following the end of the rainy season, AgDiv’s resilience interventions also included backyard gardens supported by mini and larger drip kits. AgDiv has been promoting designs modelled on rotational cropping. Diagrams and worksheets of these designs will be shared with beneficiary farmers when they

14 are finalized. Bamboo and protective plants have also been integrated in the designs, to help farmers create diverse and regenerative systems.

15

Success Story: Diversifying Livelihood Options Through Drip Irrigation

In Malawi, the cold winter of May to July is a period of agricultural hibernation. At this time of the year, farmers have harvested crops from rainfed agriculture, and most of them will put down their tools until September or October, when it is time to repeat the cycle. While many farmers are trapped in this unfortunate reality, Moses Phiri – a smallholder farmer from Dowa District, central Malawi – has a rather inspiring story.

During the lean period when the typical Malawian farmer is struggling to put food on the table, Moses has enough food to feed his family and money to invest in other productivity enhancing avenues – thanks to the drip irrigation kit installed at his one-hectare backyard farm.

“Annually, I make between MWK2,500,000 to MWK3,000,000 from crops grown under drip irrigation. I have partitioned my one-hectare farm into smaller plots, on which I grow crops like tomatoes, maize, sweet potatoes and onions. I produce these crops on rotational basis, for easy management, as well as to ensure that I am producing what is in demand, depending on the season,” said Moses.

Using proceeds from his drip-irrigated farm, Moses has bought an extra hectare of farmland to expand his irrigation operations. He has also constructed a brick fence around his compound, bought a motorbike, and diversified into pig production.

Over-reliance on rainfed agriculture has been cited as the main cause of food insecurity among smallholder farmers in Malawi. Unfortunately, irrigation equipment is out of reach of many smallholder farmers in Malawi, financially speaking. AgDiv, through its partnership with Phillip Morris International and Pyxus, provided drip irrigation equipment to over 20 farmers, while PMI and Pyxus helped with the pumping technology and on-going operational support.

AgDiv is also working with other private sector partners, including the tea and sugar estates, to leverage their technical knowledge, long-term relationships with communities, and bulk water systems for irrigation to construct irrigation schemes for sustainable and inclusive wealth creation among smallholder farmers.

16 Resilience Challenge Fund Work on RCF irrigation activities continued throughout Quarter 3, with private sector partners continuing work with increased Covid-19 preventative measures. AgDiv delivered 825 bicycles to members of the Kasinthula Cane Growers Association and Phata Sugar Cooperative, helping them to lower the risk of contracting the disease by reducing their exposure from travelling on public transportation. AgDiv also completed distribution of 50,000 bamboo seedlings to RCF partners in January and continued work on feasibility studies that will inform the design of irrigation and watershed activities. Irrigation schemes at Chimvuli and Kalima that were developed with RCF funding were critical this season as Chikwawa experienced severe mid-season droughts. Harvesting of crops grown at these sites is expected to begin in April. Bicycles as an Alternative for Agricultural Mobility Public transportation has been identified as possible transmission location for Covid-19 in Malawi, as buses are frequently overcrowded and have inadequate space for social distancing. In Chikwawa District, many smallholder farmers and farm workers use public transportation to travel to trading centers and large sugar estates or cooperatives where they are members or employed as farm workers. Bicycles offer a safer method of transportation by reducing the risk of contracting Covid-19. They have the added benefit of increasing farmers’ mobility, which increases their access to markets and livelihoods. However, the initial cost of a quality bicycle can be prohibitive for many farmers. To address this barrier, AgDiv worked with RCF partners to set up a revolving fund for bicycle purchase for cooperatives members and farm workers. Under this partnership, an initial supply of 825 bicycles - 625 procured with funding from RCF and 200 donated from World Bicycle Relief (WBR) - was allocated to Phata Sugar Cooperative, Kasinthula Cane Growers Association, and Kaombe Community Development Trust. The bicycles were offered to both cooperative members and farm workers at a reduced price of 34,460 MWK which will be repaid over four months, allowing the fund to purchase an additional 320 bicycles by the end of the first year., WBR will train and equip bicycle mechanics from the surrounding communities and establish a shop in the area to supply spare parts. In May, AgDiv updated its questionnaire based on results of the pilot completed in April and distributed the questionnaire to partners for comments. AgDiv will conduct a survey on whether the initiative has had any impact on beneficiary households in terms of transport expenses, access to markets and income, among others.

17 OUTCOME 3: NUTRITIONAL STATUS OF WOMEN AND CHILDREN IMPROVED 50,000+ AgDiv’s approach to improving nutrition follows the general principles of Litres of Soymilk simultaneously increasing supply and demand for nutritious and safe foods, Produced with a focus on AgDiv’s three nutrient-rich agricultural value chains (soybean, groundnut and OFSP). In addition to supporting household and micro-level food processing, value addition, and storage, which we pair with extensive social marketing campaigns, we encourage the adoption of agricultural technologies - such as drip irrigation and hermetic storage technology - that enhance households’ abilities to produce and consume a wider variety of crops. In Year 5, Quarter 3, AgDiv trained 148 new soy kit entrepreneurs and continued to monitor and support soy-dairy businesses – including both individual soy kit entrepreneurs and soy cow enterprises - which provide 9,646 affordable protein-rich food sources at a hyper-local level. During Quarter 3, people trained in entrepreneurs supported by AgDiv produced over 50,000 litres of soymilk and food processing generated earnings of more than 11 million MWK. and nutrition Highlights of Outcome 3 interventions for Year 5, Quarter 3 are as follows:

18 IR 3.1. Access to and Consumption of Diverse and Quality Foods Increased Soybean is one of the most grown legume crops among smallholder farmers in Malawi. The crop is primarily grown as a cash crop, with very limited household consumption. However, price frustrations have left many smallholder farmers uncertain and on the losing end of the soy value chain. This means that farmers in Malawi are losing out on both nutritional and economic benefits of the crop. Soymilk production provides an opportunity to address both barriers by increasing household and community nutrition through higher protein consumption and creating economic opportunity through soybean value addition. In this quarter, AgDiv continued increasing the number of soymilk entrepreneurs, through soymilk processing and business management trainings for new entrepreneurs, who were also provided with soy kits. AgDiv also intensified data collection and analysis for existing soy dairy entrepreneurs. Soymilk impact evaluations were also conducted in this quarter. Food processing, safety, hygiene, and utilization trainings, along with OFSP beneficiary spot checks, were conducted. Soymilk Processing and Business Management Training By the end of the previous quarter, AgDiv had 1,044 micro-entrepreneurs producing soymilk across the zones of influence. During this quarter, AgDiv has increased the number soymilk entrepreneurs to about 2,000. With facilitation support from partners like Centre for Youth Empowerment and Civic Education (CYECE), Community Finance (CoFi), Taakaful Catholic Health Commission, and WOLREC, AgDiv trained the entrepreneurs on assembling and operating soy kits, as well as conducting a cost-benefit analysis of 1kg of soybean when processed into soymilk. During the training sessions, AgDiv recruited existing soy kit entrepreneurs to serve as mentors to trainees, sharing their experiences and lessons learned in the soymilk business.

After the training, each participant received a soy kit. The kits are empowering women financially and improving the nutrition status of household and communities in the target districts. During the month of May, soy kit entrepreneurs produced more than 400,000 liters of soymilk, and the five cooperatives that are operating soy cows produced nearly 1,000 more liters. Production is expected to increase as newly trained entrepreneurs begin operation.

19

Success Story: Soy for Social Good

With nothing but soybean and a little commitment, Women Action Group (WAG) is changing their community. Concerned with the rising cases of school dropouts among young girls, WAG – a fifteen-member women group from Chikwawa district, southern Malawi – has, since 2018, been working with surrounding primary schools to identify schoolgirls at risk of dropping out to support them with school supplies.

“We noticed that one of the main reasons for the increased school dropout rate in our community was lack of school needs since most of the parents do not have sustainable sources of income. We therefore decided to take action, and we have been doing it since 2018,” said Ruth Chiutsa, the group Chairperson.

Initially the group sustained its activities through MWK1200 monthly contributions that group members were making, through which they managed to provide exercise books and ballpoint pens to over 30 school children selected from three surrounding primary schools.

In partnership with Agricane, AgDiv provided WAG members with soymilk processing and business management training, which included how to assemble and operate the soy kit, as well as how to conduct a cost-benefit analysis for soymilk production.

After the training, WAG was given two soy kits to utilize in support of their philanthropy work. After one year of successful management and impressive record keeping, AgDiv provided the group with addition soy kits – enough for each member to operate individually and generate household income, while also sustaining the group’s philanthropy work.

With each member operating their soy kit, the monthly contribution was raised to MWK5000, and the group has since generated enough income to buy school uniforms for the 30 school kids that were initially reached with writing pens and exercise books. Group members are also able to generate enough income to not only sustain the groups work, but also improve their livelihoods.

AgDiv is working with private sector partners, including the tea and sugar estates which are the major economic growth engines in the districts, to leverage their technical knowledge and long-term relationships with communities and to drive sustainable and inclusive wealth creation for smallholder farmers.

20 AWE Soy Kit Impact Evaluation In collaboration with the Feed the Future project Advancing Women’s Empowerment Activity (AWE), AgDiv conducted a qualitative study to evaluate women’s economic empowerment beyond soymilk production. The study was aimed at understanding how Feed the Future’s efforts are impacting women’s empowerment. Eight Focus Group Discussions (FGD) were conducted for soy kit entrepreneurs (4), community leaders (2) and spouses (2). Results of the study will help to identify opportunities and best practices to increase women’s employment and participation in higher value activities in agribusiness. SIL Soy Kit Impact Evaluation In collaboration with SIL, AgDiv developed a research design for evaluating impact of soy kits on household income and nutrition, as well as community nutrition. The evaluation will employ a “randomized phase-in” design, whereby some of the study respondents will receive a soy kit in a random order before taking part in the survey, while others will receive soy kits after taking part in the survey. Data collection will start once half of the respondents have received their soy kits, and their results will be compared to results obtained from respondents that have not received their kits by the time of the survey. In May, Outcome 3 rolled out training for Phase 1 respondents and finished in June. Currently, preparations are underway for a data collection exercise, which will take place in July, subject to the Covid-19 situation. OFSP Spot Checks In May, AgDiv conducted OFSP spot checks in Dedza, Balaka, Ntcheu, Blantyre, Lilongwe, and Mchinji Districts to confirm the beneficiary list for the OFSP vines, as well as provide AgDiv an opportunity to assess the potential long-term impact of OFSP on farmers. During the survey, AgDiv observed that most of the farmers were able to follow proper planting and management practices. More farmers received OFSP trainings this season compared to the previous seasons, and about 99% of the farmers are doing vine multiplication in wetland areas (dimbas) and nurseries. The general challenge reported by farmers in was that suppliers were mixing the OFSP vines with other local varieties and were giving out fewer vines per bundle than recommended. Some farmers in Balaka district, particularly Ulongwe area, experienced prolonged dry spells, resulting in loss of vines.

Based on the findings from these spot checks, suppliers will not be paid until a complete verification of the quality of the delivered OFSP vines to farmers is completed. Farmers are also being encouraged to continue OFSP vine multiplication and follow proper management practices to continue accessing the vines for the next seasons and to produce high yields. Input Loan Post-Harvest Survey AgDiv conducts input loan post-harvest surveys to assess the impact of the loans on beneficiary farmers. The surveys also help verify that the loans have reached intended beneficiaries and give AgDiv an opportunity to identify challenges or opportunities associated with the loans. In June, AgDiv conducted surveys in Lilongwe, Mchinji, Dedza, Balaka, and Ntcheu districts, where 143 farmers were interviewed. Based on the preliminary results of the spot checks, 34% of the interviewed farmers received soybean seed, 23% received groundnuts seed, and 43% received cash to support their farming. Those who received soybean seed have harvested enough to repay their loans and save some for sale. Groundnuts seed germination was not as successful, and many did not harvest much. Those who received cash loans invested the money in various enterprises and have managed to repay the loan and save for future investments. Farmers pointed out that their preferred time for getting the inputs is October, as it facilitates planning. They noted that December distribution places them at a disadvantage as it is difficult to acquire rented land for farming. Such delays result in farmers cultivating on smaller than intended plots of land, thereby affecting their gains at the end of the growing season. Farmers who only received soy or groundnuts have also requested that a small amount of cash be included as part of the loan package to finance labor and pest and disease control measures, as these also affect yields. Food Processing, Safety, Hygiene, and Utilization Training AgDiv has taken an integrated approach to improving the nutritional status of women and children in rural communities. AgDiv is promoting dietary diversification among rural communities, through cooking

21 demonstrations focusing on the government approved six food groups and AgDiv’s target value chains, including OFSP, soybean, and groundnut. The cooking demonstrations also help improve knowledge and skills in food preparation and utilization of locally available foods.

In June, AgDiv organised and conducted food processing, safety, hygiene, and utilization sessions with beneficiaries under WOLREC and CoFi, who received OFSP vines in the last growing season. A total of 50 village agents under WOLREC received the training of trainers in food processing and utilization. The agents further trained other households in their respective communities, under AgDiv’s monitoring and supervision. 6,500 beneficiaries were trained in Lilongwe, Ntcheu, and Blantyre districts.

Participants were trained on how to group food items according to the government recommended six food groups. Participants also came up with a seasonal food calendar that included crops and livestock available in their community in specific periods of the year. Using training manuals and recipes from the International Potato Centre (CIP), the government recipe book, and the AgDiv/Lilongwe University of Agriculture and Natural Resources (LUANAR) and SIL village training manual, participants were engaged in practical cooking sessions of different diversified food products.

22

OUTCOME 4: WOMEN EMPOWERED

Context and Approach The overarching goal of Outcome 4 is to increase women’s utilization of labor- saving technologies, participation in production, post-production, resilience, and nutrition activities, while also enhancing women’s confidence, ability, and access to opportunities to take on leadership roles within their communities. To 997 achieve this, AgDiv is implementing activities to empower women at the trained in GALS household, community, and institutional levels to increase women’s Training of Trainers participation and leadership in household decision making and control over credit, incomes, and productive assets. When women are empowered and given (TOT) equal access to resources and control over incomes, they can improve productivity, household nutrition, and food security. Thus, AgDiv’s approach to women’s empowerment has been to integrate it across all outcome areas of the Activity. In Quarter 3, AgDiv trained 997 participants in the GALS Training of Trainers. AgDiv also provided Business Skills and Financial Literacy trainings and Village Savings and Loan (VSL) management trainings to 1,463 participants in Dowa, Rumphi, Mulanje, Ntchisi, Kasungu, and Lilongwe districts. Highlights of Outcome 4 interventions for Year 5, Quarter 3 are as follows: 1,463 trained in Financial Literacy

23 GALS Training

GALS trainings targets couples, encouraging them to Objectives of GALS Trainings develop a shared vision for the future and work together to implement a plan of action. Because this training is time  Introduce tools, methodologies, and intensive (and therefore expensive), AgDiv cannot offer it processes for analysis of individual and to all beneficiaries. To maximize benefits, AgDiv targets household’s context, visioning for the the training towards households that are investing in high- future, plan of action to achieve the set value agri-linked loans, including input loans and drip vision. irrigation loans, as well as a sub-set of each of the VSL  groups, who then go on to cascade the training to other Encourage participants to develop a group members. During Quarter 3, AgDiv trained 997 plan of action, to refine the vision and beneficiaries, including youth leaders and households that identify actions within their families to received input loans, deliberately providing trainings initiate sustainable change. during the harvesting period to help couples to jointly plan  Inspire women and men under Feed the for the income they will receive when they sell their Future Ag Diversification Activity to agricultural produce. develop and achieve their visions By targeting couples who have access to capital through moving forward. loans or capital injections, AgDiv is providing them with additional tools and skills that encourage them to work jointly to achieve business goals. Furthermore, with improved communication and decision-making at home, families can work together to build resilience against climate change and economic shocks in their environment. Couples that receive the training are also asked to cascade it to other members of their community. AgDiv has, over the past years, successfully used the GALS approach to promote gender inclusion in household decision-making and is now using the same framework to promote women’s and youth empowerment. From 13th – 17th April 2021, AgDiv partnered with the USAID-funded Health Policy Plus (HP+) Project to apply the GALS framework to strengthen positive youth development with youth clubs. Fifteen youth leaders from Mangochi, Mulanje, Ntchisi, Mzimba, Machinga, Nkhata Bay, Phalombe, Zomba, Balaka and Lilongwe districts were invited to attend the four-day workshop - which focused on equipping the youth leaders with skills to use GALS tools in all the positive youth development domains and cascade the tools within their youth networks. HP+ will continue to support these leaders to cascade the trainings, and AgDiv will work with HP+ to monitor progress within the groups.

Financial Literacy and Business Skills Trainings AgDiv partnered with Limbe Leaf, Pyxus and Sukambizi Estate to strengthen VSL groups that assist women to initiate savings and loan schemes and trigger sustainable options for local borrowing and investments. AgDiv is also training the VSL groups on business skills management to help them to expand their businesses, allowing the households to diversify into new income sources and providing women with the skills to engage in household financial decisions. In this quarter, AgDiv trained VSL groups from Dowa, Rumphi, Mulanje, Ntchisi, Kasungu, and Lilongwe districts on financial literacy and business skills. The trainings strengthen the capacity of VSL members to develop business plans and share best practices and guidance on operational procedures in managing VSLs. Participants also received information and skills for effective businesses management. By the end of the training, participants are able to:  Develop business plans, calculate profit and loss, understand principles of marketing and record keeping.  Develop specific business plans for each VSL group that can be easily understood and implemented by each of the members.  Describe the procedures and regulations necessary for successful and sustainable VSL management.

24 Capital Injections During Year 3, AgDiv piloted a capital injection program with WOLREC to provide VSL groups with capital injections of 300,000 MWK. By increasing the capital available to women’s groups, each member has access to larger loans with longer loan periods – enabling them to invest in productivity enhancing purchases, such as fertilizer or certified seed – knowing that the repayment period gives them enough time to recognize the profit from their investment. To increase the impact of the investment, it is structured to provide VSL members with four-month loans at an interest rate of 10 percent, which are then payable back to the VSL. During the pilot period, 3,600 women were able to receive larger and more transformative loans because of this intervention. Based on initial successes, AgDiv is targeting 630 additional VSL groups in Year 5, with additional financing for agri-linked businesses. AgDiv submitted the grant proposal for this activity to USAID on August 28th, 2020, and it was approved in May 2021. AgDiv has since commenced activities under the new grant.

25

Success Story: Enhancing Women Empowerment Through Flexible Loans

In 2019, Emily Napolo (42), a small-scale businesswoman from , central Malawi, took a loan. It changed her life. After years of struggling to grow her vegetable business, Emily tuned to her Village Saving Loan (VSL) group for a MWK30,000 loan. Two years later, Emily has grown her business sixfold and has diversified into other avenues of income.

“Ever since I got the MWK30,000 loan in 2019, my business has been growing steadily. When I started, I used to only sell tomatoes, amounting to MWK10,000, but now I sell stock of up to MWK60,000, including tomato, onions, pepper, and other vegetables. I have also started a piggery business, which is also growing very fast,” said Emily.

Like many rural women in Malawi, Emily had no access to loan facilities that would enable her to grow her business to a profitable level. Her only hope – the community VSL group – used to offered loans at unbearable interest rates of up to 25 percent, making it hard for small-scale business owners to realize tangible benefits. This was the case until AgDiv, through Women Legal Resource Centre (WOLREC), gave the VSL group a MWK300,000 capital injection for members to borrow at a 10% interest rate.

“The previous loans that I got from the VSL group proved to be nothing but a burden weighing down on my business. On top of that, it was very hard to access the loan as the group’s capital could not satisfy the demand for loans, which was very high because the VSL was the only accessible alternative,” she said.

Lack of access to enabling financial infrastructure remains a major cause of financial stagnation among many rural households in Malawi. Women in particular are subject to a range of social and economic deprivations at both societal and household level, leaving them perpetually dependent on their husband for financial needs. AgDiv has been working with WOLREC to support rural VSL groups in Balaka, Blantyre, and Dedza districts, enabling members to get up to MWK30,000 loans at a 10% interest rate.

Recently, USAID has approved a new WOLREC grant, enabling AgDiv to make the flexible loan facility accessible to an additional 630 VSL groups this year.

26 WOLREC Village Agents Meeting Under the initial AgDiv-WOLREC partnership, VSLA groups in Ntcheu, Lilongwe, and Blantyre were constantly monitored at the ground level by village agents. The newly approved WOLREC grant is now covering 9 districts targeting 18,900 beneficiaries. AgDiv organized a training for 150 WOLREC village agents, who will help ensure systematic flow of loan records and repayment. The objective of the training was to orient the participants on AgDiv’s work and their role in achieving meaningful results. WOLREC Activities under the new grant Following the approval of the new grant, WOLREC conducted meeting with DECs and DEC sub- committees in Nsanje and Chikwawa districts. The aim of the meetings was to brief the DECs on the project concept and to explain that capital injections would be distributed to existing Village and Savings Loan initiatives in the target districts. The DEC members were supportive of the initiative and approved WOLREC to start implementing activities in the districts once the project concept had been presented to district councils.

TABLE 1: WOMEN'S SOCIOECONOMIC EMPOWERMENT ACTIVITIES - YEAR 5, QUARTER 3

Activity Women Men Total Business Management Skills 1426 348 1774 Financial Literacy 1284 179 1463 VSL Management 342 2 344 GALS Training (TOT) 524 473 997 Total 3576 1002 4578

CROSS CUTTING

Under Outcome 5, AgDiv increases integration with USAID, other donor projects, and stakeholders in the agriculture sector. This includes collaboration in promoting evidence-based technologies and interventions, policies favorable to agricultural development, and improved coordination for targeting activities to maximize impact and avoid duplication. AWE Evaluation of the Impact of Soy Kits on Women’s Empowerment AgDiv’s soy kit initiative was selected by the Feed the Future AWE Activity from among 40 other projects for an in-depth evaluation in the area of women’s empowerment. With support from AgDiv, AWE will use project data and qualitative methods to look at how, and in what ways, soy kit entrepreneurship affects women’s empowerment outcomes. In April, AWE worked with AgDiv to finalize the evaluation plan. In May, AWE provided training to its lead data collection officer and AgDiv staff on how to conduct focus group discussions. In June, AWE in collaboration with AgDiv conducted the study. Eight focus group discussions were conducted targeting four soy kit entrepreneurs, two community leaders, and two female spouses. Results of the study will help identify opportunities and practices to increase women’s participation in higher value activities in agribusiness and employment. Collaborating with HP+ on GALS Trainings for Youth During Quarter 3, AgDiv worked with HP+ to plan for a GALS training of trainers that would target Youth Club executive committee members. In April, 15 youth leaders from Mangochi, Mulanje, Ntchisi, Mzimba, Machinga, Nkhata Bay, Phalombe, Zomba, Balaka, and Lilongwe districts were invited to attend the four-day workshop, which focused on equipping the youth leaders with skills to use GALS tools in all the positive youth development domains and cascade the tools within their youth networks. HP+ will continue to support these leaders to cascade the trainings, and AgDiv will work with HP+ to monitor progress within the groups.

27 Modern Cooking, Healthy Forests The Modern Cooking, Healthy Forests (MCHF) Project is funded jointly by USAID and the Department for International Development and addresses fuelwood availability in Malawi, illegal deforestation, protection of forest reserves, and the integration of fuel efficient cookstoves. In December, AgDiv provided MCHF with 12,500 bamboo seedlings for MCHF to integrate in their resilience design. In May, AgDiv hosted MCHF on a learning exchange visit to resilience sites in the Chongoni Hills area of Dedza. MCHF Chief of Party, Ramsy Kanaan and his team observed some of the catchment management interventions, including a bamboo buffer, that AgDiv has created in partnership with UP and local communities to protect the Chongoni Forest Reserve from rampant deforestation and downhill erosion, while promoting large scale conservation. . Innovation Labs In April AgDiv worked with the Feed the Future – SIL to host a webinar highlighting their collaboration in Malawi. The webinar focused on the linkages that have been created between SIL, the Department of Agricultural Research Services (DARS), and the Malawian private sector, which were facilitated by AgDiv, and how these relationships have accelerated the introduction and commercialization of soybean varieties with qualities in demand from farmers and off-takers. On May 18th and 19th, AgDiv participated in a two-day USAID Innovation Labs Virtual Partners Meeting to discuss impacts made and how the Innovation Labs can respond better to Mission and in- country project needs. AgDiv’s multi-sectoral approach was highlighted as the best practice for delivering impacts during the meeting, which was comprised of delegates from the Innovation Labs, the USAID Mission, and USAID Bureau for Resilience and Food Security. On May 28th, SIL held a training with the DARS and private sector partners to start preparations for winter trials for both the PAVT and the SMART Farm Trials. Private sector participants included Pyxus and IITA. In June, AgDiv gave presentations on Innovation Lab (IL) partnerships at two events: the 2021 USAID Peanut Innovation Lab’s Annual Research Meeting (ARM) and the United States Department of Agriculture’s (USDA) Expert to Expert Dialogue series. At the Peanut Innovation Lab’s ARM, AgDiv was invited to discuss the unique partnership between AgDiv and the Peanut Innovation Lab. In addition to the presentation, AgDiv also facilitated a breakout room on the same topic. At the USDA dialogue series, which was also part of the 2021 UN Food Systems Summit, AgDiv joined SIL to discuss how SIL innovations impact global food security, by highlighting the SMART Farm research trials and how AgDiv has help scale the research in Malawi. Agriculture Commercialization Project In May, AgDiv had a meeting with Agriculture Commercialization (AgCom) project, to discuss a possible partnership on access to finance – to support cooperatives under AgDiv’s input package loans in areas such as value addition. AgCom offered direction on what AgDiv and its partners need to do to bring the partnership to fruition. AgDiv is currently working on action points agreed upon during the meeting. Bicycles as an Alternative for Agricultural Mobility As part of the RCF activities, and in response to Covid-19, AgDiv partnered with Buffalo Bicycles and several RCF Growth Pole partners to offer high-quality bicycles to smallholder farmers on credit. The bicycles provide an alternative to public transport, which can pose a risk of exposure to Covid-19, as well as making it easier for households to travel and transport goods. In May, AgDiv updated its questionnaire based on results of the pilot completed in April and distributed the questionnaire to partners for comments. AgDiv will conduct a survey on whether the initiative has had any impact on beneficiary households in terms of transport expenses and access to markets and income, among others. Political Economy Analysis In April AgDiv continued work on the AIP Political Economy Analysis, including finalizing the questionnaires for different categories of stakeholders and beginning stakeholder interviews. In May, AgDiv analyzed findings of a farmer survey that MwAPATA Institute conducted back in March – to understand people’s perception of the AIP initiative. In June, a draft of the paper was completed. AgDiv is working with USAID to schedule an internal presentation and discussion of the paper results.

28 Earth Day Celebrations To commemorate this year’s World Earth Day, AgDiv and the Ministry of Forestry and Natural Resources co-hosted a symbolic bamboo and tree planting event at the Area 25 Health Centre in Lilongwe. The Health Centre is a public-private partnership between Baylor Malawi and the Ministry of Health. The event featured US Ambassador Robert Scott and Minister of Forestry and Natural Resources Nancy Tembo and was attended by representatives from the Ministry of Health, Baylor Malawi, USAID, AgDiv, and the Ministry of Forestry and Natural Resources. National Agriculture Content Development Committee In April, AgDiv called a virtual meeting of the National Agricultural Content Development Committee (NACDC) to review content on hermetic storage for the 2021 post-harvest season. In addition to AgDiv and FRT, PICS ESA, Agri Input Suppliers Ltd (AISL), Department of Agricultural Extension Services (DAES), and DARS all took part in the meeting.

29 MONITORING AND EVALUATION

AgDiv’s monitoring and evaluation (M&E) team supports the project in achieving two objectives: accountability that AgDiv is achieving program objectives and using resources wisely and learning to help AgDiv to improve its implementation and provide evidence for USAID and other stakeholders to improve future programs. AgDiv’s independent external evaluator, IBTCI, plays an important role in accountability, including performance indicator reporting and performance evaluation. IBTCI is contracted by USAID to conduct an annual survey to collect data for AgDiv’s outcome-oriented USAID performance indicators and to conduct a verification of the data collected by AgDiv and its partners, which are used to report on output performance indicators. AgDiv’s M&E team provides inputs to IBTCI on sampling design, questionnaire development, data collection, and data analysis and provides data on beneficiaries, from which the annual survey sample is drawn. In addition to supporting IBTCI’s performance evaluation work, AgDiv also undertakes supplemental M&E activities focuses on learning. AgDiv uses a theory-based approach for evaluating new and innovative activities that the project is undertaking. This approach identifies the mechanisms that are expected to achieve change and examines whether they are working as hypothesized. This approach is critical for learning and adapting AgDiv’s approach to achieve the desired impacts for beneficiaries. Highlights of these activities are as follows: Inoculant Recipients Spot Checks AgDiv, in collaboration with partners UP and DAESS, distributed soybean and groundnut inoculant during 2020/2021 growing season. As part of post-distribution monitoring, the AgDiv M&E and Outcome 1 teams conducted spot check surveys in Lilongwe, Dedza, Mchinji, Blantyre, Ntcheu, Machinga, and Mangochi districts to get a general picture of whether farmers have received, used, and benefitted from inoculant. The spot checks helped AgDiv assess the quality of data submitted by partners before its inclusion in the AgDiv database, where it will be used for various activities such as beneficiary sampling for annual survey and data verification exercises by independent evaluators. The team conducted one-on-one interviews with 514 farmers identified from a database of beneficiaries reported to have received legume inoculant in the 2020/2021 season. Selection was done randomly, stratified by EPA and Section. The plan was to reach 800 farmers, but some could not be traced, while others received but did not use the inoculant, hence they were not interviewed. A total of 514 farmers confirmed to have received and used the inoculants. The type of inoculant and number of packets received varied from site to site depending on the type of inoculant received and the number of farmers who were interested in using the inoculants. 97 percent of farmers said they knew the benefits of using inoculant through training and/or information contained on the pack, while three percent did not know because they were either not trained or did not know how to read. 94 percent of the farmers said they have received training on the use of legume inoculant. The untrained six percent managed to use inoculant by following instruction on the packets. Three percent of the farmers bought extra inoculant to add on what they had received from AgDiv. The rest of the farmers said they were waiting for this year’s harvests to be certain about the benefits of inoculant. Lack of knowledge on prices and locally available outlets was another reason given by the farmers who did not buy inoculant. Overall, the spot checks provided lessons on what is working and what needs to be improved. Among others, distribution of inoculant needs to start as early as October to avoid delays. More spot checks need to be conducted as they help improve the quality of data that AgDiv uses for reporting. PMI Diversification Impact Evaluation AgDiv is partnering with Philip Morris International (PMI), Universal Ventures Cannon Garth (UVCG) (formerly Limbe Leaf Tobacco Company), and Pyxus to help farmers diversify into crops and away from tobacco. To evaluate the impact of this initiative, AgDiv and its partners are collecting detailed data on household-level outcomes such as yields, farm and non-farm income, assets and poverty levels, food security, and dietary diversity. Key findings included that farmers contracting with Pyxus and UVCG are generally better off across many dimensions of welfare, compared with non-contracted tobacco farmers in the same communities. Some of these differences likely reflect fundamental differences in the type of

30 farmers who work with the two companies—for example, contracted farmers have larger average farm sizes and higher education levels. However, some of this difference is likely due to benefits of diversification support provided by the companies, such as higher rates of growing legumes and higher maize yield due to input packages. It is also notable that there are large differences between contracted farmers. While some are very well off, a considerable number still struggle with food insecurity and have low diversity in their income sources. During Quarter 3, AgDiv and PMI began planning for the 2021 Household Welfare Survey. This survey, which will serve as a midline survey for the Diversification Impact Evaluation, will collect detailed information on household income, food security, and nutrition outcomes. The module on non-farm income will be expanded to collect more information about the types of non-farm enterprises households engage in, and the potential earnings from different types of activities. Data collection is targeted for August – October 2021. High Frequency Resilience Data Collection AgDiv has partnered with Causal Design to use high frequency data collection as a key component of its M&E for Resilience Challenge Fund sites. Data collection began in December 2020, and continued monthly throughout Quarter 3, with Covid-19 precautions taken. Additional personal protective equipment was delivered to the community data collection agents by courier, and agents were sent SMS reminders to follow standard Covid-19 protocol, including maintaining distance during interviews and not conducting interviews if they or the interview subject is ill. Covid-19 travel restrictions did negatively affect AgDiv and Causal Design’s ability to provide support in the field to agents with challenges with their devices, but support was provided by phone when possible. During this Quarter, AgDiv also worked with Causal Design to develop easy-to-read monthly report templates that will be used to share village-level results with local community members and decision- making bodies. In April, AgDiv shared survey results for the period from December to March 2021 with communities in Thyolo, Mulanje, Chikwawa, and Nsanje districts. The results were presented to community leaders including chiefs, as well as Area and village development committee members. Overall, the results were well received, with community leaders expressing interest in receiving regular reports in both paper format and electronically. Reports from the community data collection officers indicate that AgDiv’s April – June visits to 8 Traditional Authorities to present the data results to community leaders were successful at increasing community understanding and support of the data collection effort. AgDiv is planning to continue regular community engagement visits to disseminate reports and ensure the data are useful to local communities. In June, Causal Design finalized its qualitative midterm methodology and began data collection. The draft qualitative data report is currently expected by the end of July. Causal Design is planning the midterm impact evaluation for August and September. AWE Evaluation of the Impact of Soy Kits on Women’s Empowerment AgDiv’s soy kit initiative was selected by the Feed the Future AWE Activity from among 40 other projects for an in-depth evaluation in the area of women’s empowerment. With support from AgDiv, AWE will use project data and qualitative methods to look at how, and in what ways, soy kit entrepreneurship affects women’s empowerment outcomes. In April, AWE worked with AgDiv to finalize the evaluation plan. In May, AWE provided training to its lead data collection officer and AgDiv staff on how to conduct focus group discussions. In June, AWE in collaboration with AgDiv conducted the study. Eight focus group discussions were conducted targeting four soy kit entrepreneurs, two community leaders, and two female spouses. Results of the study will help identify opportunities and practices to increase women’s participation in higher value activities in agribusiness and employment. Cost Benefit Analysis Over the course of the project, AgDiv has developed cost-benefit analyses for many of its key interventions, to ensure that they represent sound investments and to help guide decisions about the best approaches for implementation. In March, AgDiv provided its cost-benefit models to researchers at UCONN, who will manage and provide support for a peer review of the models. This process will include a series of webinars, in which Malawian and international experts will be presented with the models and invited to give input on the model and the key assumptions that feed into the analysis. This process is intended to ensure that

31 USAID has high quality tools to help it assess the value for money of different agricultural technologies and development interventions to inform future projects. Ag Finance Market Systems Impact Assessment AgDiv and its partners have implemented a number of innovative interventions related to agricultural and rural finance in Malawi. To assess the impact of these interventions at the level of financial market systems in Malawi, AgDiv is planning to conduct an impact assessment utilizing systems mapping and key informant interviews. This quarter, AgDiv’s evaluation and strategy consultant continued working with Outcome 4 on data collection for the assessment. M&E Partnerships Under Development AgDiv is continuing to work towards the following partnerships in the area of M&E and learning:

 AgDiv is working with Illovo to develop an expanded evaluation plan for their RCF Growth Pole activities. The evaluation work will build off, and be complementary to, the high frequency data collection underway in some communities that Illovo is working with. In May through June, AgDiv completed piloting a qualitative survey that will feed into this work. Data collection will begin in the first week of July.

 In May, AgDiv continued to work with GiveDirectly to finalize a concept for research looking at whether cash transfer and credit financing results in higher adoption of agricultural technologies. This concept will work off GiveDirectly cash transfers that are already planned as part of other preexisting programs and will enable AgDiv to answer the fundamental questions about whether credit and cash transfers are effective at increasing uptake of resilience technologies. In June, AgDiv worked with GiveDirectly to finalize the work plan and is expected to start data collection in July, provided the Covid-19 situation does not result in another lockdown. Political Economy Analysis Project In April AgDiv continued work on the AIP Political Economy Analysis, including finalizing the questionnaires for different categories of stakeholders and beginning stakeholder interviews. In May, AgDiv analyzed findings of a farmer survey that MwAPATA Institute conducted back in March to understand people’s perception of the AIP initiative. In June, a draft of the paper was completed. AgDiv is working with USAID to schedule an internal presentation and discussion of paper results. Private Sector Coordination on Research, Policy Development and Advocacy In June, AgDiv met with several key research and policy organizations in Malawi, including the MwAPATA Institute, IFPRI, and the Blair Institute, to discuss improved coordination among research organizations, how to track research into effective policy development and advocacy, and how to engage the private sector in the policy research, development, and advocacy process.

32 ANNEX A: YEAR 5, QUARTER 3 PERFORMANCE INDICATOR RESULTS TABLE

NUMBERS NUMBERS Outcome Internal Ref. ACHIEVED Y5 ACHIEVED Y5 Q2 PERFORMANCE INDICATOR # # Q2 TOTAL

Total Reported 1 1.1-1 1.1-1 Value of agriculture-related financing accessed as a result of USG $0 $0 assistance (EG 3.2-27) Duration New $0 $0 Continuing $0 $0 Type of Loan Recipient Producers Local Traders/assemblers Wholesalers/processors Others Disaggregates not available Sex of Recipient Male Producers

Local Traders/assemblers

Wholesalers/processors

33

Others

Disaggregates not available Female Producers Local Traders/assemblers Wholesalers/processors Others Disaggregates not available Joint - - Producers Local Traders/assemblers Wholesalers/processors Others Disaggregates not available N/A - - Producers Local Traders/assemblers Wholesalers/processors Others Disaggregates not available 1 1.1-2 1.1-2 Number of MSMEs, including farmers receiving agricultural related credit as a result of USG assistance (EG. 3.2-3) 0 0 Duration New 0 0 Continuing 0 0 Size of MSME Micro - - Small - - Medium - - Sex of owner/producer

34 Male - - Female - - Joint - - 1 1.2-2 1.2-2 Value of new USG commitments and private sector investment leveraged by the USG to support food security and nutrition (EG 3.1-14) 0 0

Duration New 0 0

Continuing 0 0

1 1.4-1 1.4-1 Number of farmers in the target value chains receiving the contractor's assistance in production, access to finance or access to markets (EG-Custom - 11,014 11,014 33) Duration New 1,069 1,069 Continuing 9,945 9,945 Sex Male 2,301 2,301 Female 8,713 8,713 Unknown - - Type of Assistance Farmers assisted in production 10,460 10,460

Soy - - Groundnuts - - OFSP - - Unknown/multiple value chains 10,460 10,460 Farmers assisted in access to finance - -

35 Soy - - Groundnuts - - OFSP - - Unknown/multiple value chains (Soy & Groundnuts) - - Farmers assisted in access to markets 554 554 Soy - - Groundnuts - - OFSP - - Unknown/multiple value chains (Soy & Groundnuts) 554 554 1 1.4-6 1.4-6 Number of farmers and others who have received USG supported short- term agricultural sector productivity or food security training (EG 3.2-1) 11,380 11,380 Duration New 1,307 1,307 Continuing 10,073 10,073 Sex Male 2,449 2,449 Female 8,931 8,931 Unknown - - Type of individual Producers (Farmers) 11,380 11,380 Government staff (Extension, EPA etc.) - - Private Sector (Processors, service providers) - - Civil Society (NGO' CBO, FBO, research etc.) - - 1 1.3-2 1.3-2 Value of annual sales of farms and firms receiving USG assistance 0 0 (EG 3.2-26) Organization Type Farms Commodity Soy Groundnuts

36 OFSP Firms Commodity PICS Bags Drip Irrigation Inoculant Soy processed products (milk, yoghurt) 1 1.3-4 1.3-4 Number of firms receiving USG-funded technical assistance for improving business performance (EG. 5.2-1) 0 0 Duration New - - Continuing - - Type of Firm Formal - - Informal - -

2 2.1-1 2.1-1 Number of people supported by the USG to adapt to the effects of climate change (EG. 11.5) 4,106 4,106 Duration New 1,609 1,609 Continuing 2,497 2,497 Male 1,556 1,556 Improved Storage 0 0 Drip Irrigation 83 83 Diversification/Varieties (Seed, OFSP Vines) - - Agroforestry/bamboo/Resilient Trainings 1,473 1,473 Improved Cookstoves 0 0 Inoculant - - Female 2,550 2,550

37 Improved Storage 0 0 Drip Irrigation 344 344 Diversification/Varieties (Seed, OFSP Vines) - - Agroforestry/bamboo/Resilient Trainings 2,206 2,206 Improved Cookstoves - - Inoculant - - Unknown Improved Storage - - Drip Irrigation - - Diversification/Varieties - - Agroforestry/bamboo/Resilient Trainings - - Improved Cookstoves - - Inoculant - - 3 3.1-1 3.1-1 Number of agro-processors, cooperatives, care groups, and farmers' associations that practice safe food processing for the targeted value chains 515 515 (EG-Custom-23) Duration New 515 515 Continuing 0 0

Type of Organization Agro-processor 0 0 Soy Groundnuts OFSP Cooperatives 0 0 Soy Groundnuts OFSP Care groups 515 515

38 Soy 515 515 Groundnuts OFSP Farmers' associations 0 0 Soy Groundnuts OFSP Type of Commodity Processed Soy 515 515 Groundnuts OFSP 4 4.1.1 4.1-1 Number of beneficiaries receiving socio-economic empowerment training (EG-Custom-32) 4,578 4,578

Duration New 0 0 Continuing 4,578 4,578

Sex Males 1,002 1,002 Females 3,576 3,576

4 4.1-2 4.1-2 Percentage of female participants in USG-assisted programs designed to increase access to productive economic resources (assets, credit, income or 75% 75% employment) (GNDR-2) Type of Assistance Production 75% 75% Economic resources/Credit - - Assets - -

39 Income employment - -

5 5.1-1 5.1-1 Number of integration interventions completed in collaboration with USAID/Malawi partners or development partners in accordance with the 0 0 criteria identified in Section C5.5. (EG-Custom-31)

Duration New 0 0 Continuing 0 0

Type of Intervention Conferences, Workshops, and Trainings Hosted 0 0 Field Days 0 0

40 ANNEX B. ENVIRONMENTAL COMPLIANCE AND CONSTRUCTION UPDATE

Feed the Future Malawi Ag Diversification Activity Pesticide Safer Use Action Plan & Compliance Track

Required Compliance (Mitigation) Measure Initial Compliance Actions Planned Status (from SEG SUAP), modified for FTF Status (if not to Malawi AgDiv known or not Achieve & of Compliance applicable, indicate) Maintain Actions Compliance

Support only the pesticides authorized by the 2018 USAID/Malawi Ag Sector PERSUAP

IMMEDIATELY

Completed Review of all grants Compliant Inventory pesticides being supported and and partnerships to ensure no support for alachlor, aldicarb, ensure no support aluminum phosphide, atrazine, chlordane, to these pesticides carbosulfan, disulfoton, endosulfan, methamidophos, monocrotophos terbufos, and paraquat

Completed Inclusion of Compliant Distribute copies of the list of allowed PERSUAP in all active ingredients (AI) with matching Grant packets. commercial product names to all project Distribution to field staff, grant recipients, partners, and partners with loan facilities/FIs/VSLs MOUs

(See Ag Div EMMP Annex of allowed and rejected pesticides; add product names).

41 Completed Review of all grants Compliant Assure that pesticide support is limited to and partnerships to only pesticides approved by the ensure no support PERSUAP. to pesticides banned under PERSUAP

Continue verification throughout the life of Verified through Review of all grants Compliant project (LOP). review of annual work and partnerships to plans ensure no support to pesticides banned under PERSUAP

Completed Due diligence Compliant Assure that any pesticides directly carried out on purchased or applied are quality, brand- suppliers name products.

Pesticide TA and use must be governed by a set of locally adapted, crop and pest specific IPM based pest management plans and observe enumerated restrictions.

Completed Review of project All sites have Identify any sensitive protected areas near site location and been reviewed; project sites. undertake any ERFs are ERFs currently being finalized Completed PMP for crops Compliant Starting from the information in requiring pesticide PERSUAP Annex 1 and drawing on use PERSUAP Annex 7, adopt/develop crop- and pest-specific IPM-based pest management plans (PMPs). (Check with and use other USAID projects that have PMPs)

Completed Best Practices on Distributed to Translate PMPs into crop-specific field posters partners reference guides or posters for farmers to anticipate and manage pests.

42 Completed Crop specific PMP Compliant Provide first-time training to appropriate training delivered project staff, partners, and beneficiaries to all partners (including grant recipients, partners, and financial institution staff) in PMPs.

Provide refresher training annually.

Completed Environmental Compliant Require and enforce PMP implementation review monitoring in situations where the project has direct form created. control over pesticide use (this includes Ag Div grants, partnerships, and alliances).

Completed Environmental Compliant Require and enforce use restrictions review monitoring enumerated below * in situations where the system in place project has direct control over pesticide use (this includes Ag Div grants, partnerships, and alliances).

Completed ERF carried out Compliant Require and enforce that field extension with all bamboo and other crop production support under partners, review direct project control be PMP-based and process in place fully comply with enumerated use restrictions below.*

Completed PMP for crops Compliant Require and enforce that agricultural requiring pesticide practice on the ground be PMP-based support developed. and fully comply with enumerated use Review process in restrictions below.* place

Completed Environmental Compliant Modify PMPs over the LOP based on monitoring and ground-truthing/field experience. review process in place

Appropriate project staff and beneficiaries must be trained in safer pesticide use and pesticide first aid.

Completed IPM Training done Compliant Develop a Training Plan for Pesticide Safe with partners Practices and IPM for project staff and beneficiaries (including grantees, partners, financial institution staff), which requires first-time training during Year 2 with at least annual refresher training.

43 Completed IPM training done Compliant Develop a training curriculum conforming with partners to required training elements that must include at the least, the Pesticide Safer Use/IPM training elements in the PERSUAP, Annex 9.

To the greatest degree practicable, projects must require use of and ensure maintenance of appropriate PPE and application equipment, as well as safe pesticide purchase, use, storage, and disposal practices.

Not Applicable Not Applicable Not Applicable Require the use of well-maintained sprayers and proper post-spray hygiene and facilities for pesticide use under direct project control (this includes grants, alliances, and partnerships, demo plots).

Not Applicable Not Applicable Not Applicable Ensure that appropriate post-spray facilities for washing clothing and equipment and proper disposal of wastes are in place (grants, alliances, partnerships, demo plots).

Not Applicable Not Applicable Not Applicable Ensure that appropriate personal protection equipment (PPE) is available, well- maintained, and properly used, and that good handling, storage, clean-up, and disposal practices are followed. This includes the use of gloves for powder or granule application and PPE as required by pesticide labels.

Not Applicable Not Applicable Not Applicable In extension activities, promote and support appropriate PPE use and good handling, storage, clean-up, and disposal practices to the greatest extent practicable.

Completed Working with Compliant For support to commercial farms, partners who have encourage and support the use of Global strong internal GAP best practices for pesticide storage, controls—i.e. use, and disposal, whether or not Global Tobacco GAP certification is being sought. Companies

Projects must be systematic in their pesticide related record-keeping and monitoring.

44 Not Applicable Not Applicable Not Applicable Pesticide efficacy in demonstration plots must be evaluated.

Not Applicable Not Applicable Not Applicable The following must be tracked and recorded:

Human poisonings and any incidences of Not Applicable Not Applicable Not Applicable chronic health issues; farm animal livestock deaths; incidences of water pollution; fish, bird, wildlife, or honeybee kills; and any evidence of pesticide resistance development.

Flow-down requirements

Not Applicable Not Applicable Not Applicable Ag Div must write pesticide compliance requirements as set out in this SUAP into each grant, sub-contract, or partnership agreement that will support pesticide use.

*Use restrictions

1. Higher toxicity and more persistent pesticides will not be used where endangered species are known to exist, including near forested areas, aquatic resources, and adjacent to protected areas.

2. A 2.5 to 5 km buffer no-spray zone will be observed around national parks and other protected areas.

3. Neither spraying nor equipment rinsing will be conducted within 30 meters of ponds, drainage ditches, and surface waters.

4. Pesticides with high toxicities to aquatic organisms will not be sprayed when rain is likely.

5. Herbicides or other pesticides with high leaching and groundwater pollution potential (see PERSUAP Annex 7) will not be used near drinking water sources, on highly sandy soils or soils with water tables close (2 to 3 meters) to the surface.

6. Prior to using pesticides where bee colonies are present, Ag Div staff, beneficiaries, and partners will notify beekeepers, and will only use pesticides less toxic to bees (see PERSUAP) during hours where bees are not active.

45 ANNEX C. TOBACCO POLICY DRIP IRRIGATION MONITORING REPORT

Drip Kits and Crops Summary Report During Year 5, Quarter 3, AgDiv had 20 half-hectare and five one-hectare drip kits installed across five sites, each of which is being cultivated by farmers associated with Pyxus (formerly Alliance One). These drip kits are providing irrigation for 15 ha of cultivated land. An additional three drip kits were installed with farmers associated with UVCG (formerly Limbe Leaf Tobacco Company), providing irrigation for 1.5 ha of cultivated land. The crops grown on the drip kits included maize, beans, sweet potato, watermelons, bananas, and vegetables. Each quarter, AgDiv conducts routine monitoring of the sites to confirm that they are not being used for tobacco production. In the third Quarter of Year 5, AgDiv conducted in-person spot-checks to all sites to confirm that no equipment provide by funding from USAID is being used for tobacco production.

Table 2. Summary Statistics for USAID Tobacco Corrective Actions Taken (if Policy Drip Irrigation Monitoring Visits applicable) Total Number of Drip Irrigation Sites 11 N/A Total Number of Monitoring Visits 2 N/A Completed Number of Visits with No Violation 2 N/A Number of Visits with Potential Violation 0 N/A

Potential Violations/Corrective Actions No violations were found at any of the drip irrigation sites during Year 5, Quarter 3. Background Information on Pyxus Irrigation Collaboration Pyxus is implementing their diversification and irrigation activities under their Oasis of Prosperity Trial (OPT). Under this program, Pyxus is using a hub-and-spoke, or anchor farm, model to set up drip irrigation on smallholder tobacco farmer land surrounding their commercial farms, in this case their Mpale farm in Madisi. Making use of their extensive database of farmers, Pyxus is selecting individual farmers and farmer groups to set up irrigation trials. From the Mpale farm, the farmers receive extension and technical training, engineering support, and mechanization services with the farm. In Year 2 of the project, AgDiv contributed 25 Netafim irrigation kits (twenty .5ha kits and five 1ha kits) to the Oasis of Prosperity Trial, providing irrigation for a total of eight sites. While AgDiv supplied the drip irrigation kit, Pyxus is providing the bulk water supply including the drilling of boreholes and supply of irrigation pumps, tanks, and additional piping. All 25 kits are now installed on farmer fields. Monitoring during this quarter has confirmed that they are being used for vegetable crop production. Background Information on UVCG Irrigation Collaboration In Year 2, AgDiv supplied UVCG with 10 Netafim drip irrigation kits (three .5ha and seven 1ha kits) for their diversification and irrigation activities. During Year 3, Quarter 2, the first two irrigation kits were installed with UVCG farmers, and a third site was installed during Year 3, Quarter 3. All three sites are fed from a borehole using a solar pump. UVCG is providing cabbage and onion seedlings for the sites

46 and have made offtake arrangements with local catering service providers and grocery chains. The location and quantity of the seven unused kits has been confirmed.

47