FEWS NET Malawi Enhanced Market Analysis September 2018
Total Page:16
File Type:pdf, Size:1020Kb
FEWS NET Malawi Enhanced Market Analysis 2018 MALAWI ENHANCED MARKET ANALYSIS SEPTEMBER 2018 This publication was produced for review by the United States Agency for International Development. It was prepared by Chemonics International Inc. for the Famine Early Warning Systems Network (FEWS NET), contract number AID-OAA-I-12-00006. The authors’Famine views Early expressed Warning inSystem this publications Network do not necessarily reflect the views of the 1 United States Agency for International Development or the United States government. FEWS NET Malawi Enhanced Market Analysis 2018 About FEWS NET Created in response to the 1984 famines in East and West Africa, the Famine Early Warning Systems Network (FEWS NET) provides early warning and integrated, forward-looking analysis of the many factors that contribute to food insecurity. FEWS NET aims to inform decision makers and contribute to their emergency response planning; support partners in conducting early warning analysis and forecasting; and provide technical assistance to partner-led initiatives. To learn more about the FEWS NET project, please visit www.fews.net. Disclaimer This publication was prepared under the United States Agency for International Development Famine Early Warning Systems Network (FEWS NET) Indefinite Quantity Contract, AID-OAA-I-12-00006. The authors’ views expressed in this publication do not necessarily reflect the views of the United States Agency for International Development or the United States government. Acknowledgements FEWS NET gratefully acknowledges the network of partners in Malawi who contributed their time, analysis, and data to make this report possible. Recommended Citation FEWS NET. 2018. Malawi Enhanced Market Analysis. Washington, DC: FEWS NET. ©Cover photos: FEWS NET. Famine Early Warning Systems Network ii FEWS NET Malawi Enhanced Market Analysis 2018 Table of Contents Preface ........................................................................................................................................................................................ ix Executive Summary ..................................................................................................................................................................... 1 Introduction ................................................................................................................................................................................. 4 Context ........................................................................................................................................................................................ 5 Environmental Context ............................................................................................................................................................ 5 Social Context .......................................................................................................................................................................... 6 Livelihoods Context ................................................................................................................................................................. 7 Infrastructure ........................................................................................................................................................................... 9 Markets ...................................................................................................................................................................................... 10 Market Structure ................................................................................................................................................................... 10 Market Conduct ..................................................................................................................................................................... 13 Market Performance.............................................................................................................................................................. 14 Food Security and Assistance .................................................................................................................................................... 15 Food Security ......................................................................................................................................................................... 15 Policy: Evolving toward ‘shock-sensitive’ social protection ................................................................................................... 16 Assistance .............................................................................................................................................................................. 17 Modality Experience and Considerations for Program Design .................................................................................................. 19 Cross-cutting considerations ................................................................................................................................................. 20 Beneficiary Preferences ......................................................................................................................................................... 23 Program Scale ........................................................................................................................................................................ 24 Commodity Selection ............................................................................................................................................................. 25 Logistics and commodity management ................................................................................................................................. 25 Market monitoring ................................................................................................................................................................ 25 Modality-specific considerations, lessons learned, and risks ................................................................................................ 26 Local and Regional Procurement ........................................................................................................................................... 26 Cash Transfers ........................................................................................................................................................................ 27 Vouchers ................................................................................................................................................................................ 29 Food- and Cash-for-assets ..................................................................................................................................................... 30 Program design considerations in support of increased animal protein consumption ......................................................... 30 Annex 1. Methodology .............................................................................................................................................................. 31 Annex 2. Southern Malawi Livelihoods...................................................................................................................................... 35 Annex 3. National Market Context ............................................................................................................................................ 42 Annex 4. Marketing Basins Serving Southern Malawi ............................................................................................................... 55 Annex 5. Profiles of Reference Markets in Southern Malawi .................................................................................................... 60 Annex 6. Local and Regional Procurement Opportunities ......................................................................................................... 74 Annex 7. Ports, Storage, and Transportation............................................................................................................................. 79 Annex 8. Financial Service Providers and Infrastructure in Malawi .......................................................................................... 87 Annex 9. Malawi District-level Crop Production and Net Supply .............................................................................................. 91 Annex 10. Malawi ADD-level Production ................................................................................................................................... 92 Annex 11. Southern Malawi Price Trends .................................................................................................................................. 94 Annex 12. Summary of market characteristics in AOI ............................................................................................................... 96 References ............................................................................................................................................................................... 102 Famine Early Warning Systems Network iii FEWS NET Malawi Enhanced Market Analysis 2018 List of Figures Figure 1. FEWS NET reporting countries ....................................................................................................................................