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Government of the Republic of Malawi New Partnership for Food and Agriculture Organization Africa’s Development (NEPAD) of the United Nations Comprehensive Africa Agriculture Investment Centre Division Development Programme (CAADP) GOVERNMENT OF THE REPUBLIC OF MALAWI SUPPORT TO NEPAD–CAADP IMPLEMENTATION TCP/MLW/2906 (I) (NEPAD Ref. 05/11 E) Volume I of V NATIONAL MEDIUM TERM INVESTMENT PROGRAMME (NMTIP) January 2005 MALAWI: Support to NEPAD–CAADP Implementation Volume I: National Medium–Term Investment Programme (NMTIP) Bankable Investment Project Profiles (BIPPs) Volume II: Commercialization of High-Value Crops Volume III: Integrated Water Management and Rural Agricultural Credit Volume IV: Livestock and Fishery Development Volume V: Agricultural Technology Development and Dissemination MALAWI: NEPAD–CAADP National Medium–Term Investment Programme (NMTIP) Table of Contents Abbreviations........................................................................................................................................ iii Preface .....................................................................................................................................................1 I. INTRODUCTION........................................................................................................................3 A. The Economy......................................................................................................................3 B. The Agricultural and Rural Sector ..................................................................................4 C. Strategic Framework.........................................................................................................6 (i) Government Objectives and Strategy............................................................ 6 (ii) Major Donors’ Strategies and Priorities....................................................... 7 (iii) Other Development Initiatives .................................................................... 10 (iv) Project Pipeline............................................................................................ 10 (v) Conclusion ................................................................................................... 12 II. CONSTRAINTS AND OPPORTUNITIES.............................................................................13 III. INVESTMENT PROGRAMME OUTLINE...........................................................................17 A. Priority Areas for Investment.........................................................................................17 B. Project Selection Criteria................................................................................................21 C. Identification of Projects for Development with FAO Assistance...............................21 D. Preliminary Assessment of IFI/Donor Interest in Financing Bankable Projects.......21 IV. FINANCING GAP.....................................................................................................................22 V. MONITORING AND EVALUATION ....................................................................................23 ANNEXES: Annex 1: Linkage Between Current Operational Projects and the CAADP Pillars Annex 2: Linkage Between Government Priorities and Strategies (in Selected High Priority Areas), and CAADP Pillars Annex 3: Summary of Pipeline Projects Annex 4: National Workshop Report Annex 5: List of References NEPAD – Comprehensive Africa Agriculture Development Programme Malawi: National Medium–Term Investment Programme (NMTIP) Abbreviations ACP African, Caribbean and Pacific ADD Agricultural Development Division ADMARC Agricultural Development Marketing Corporation AfDB African Development Bank AIDS Acquired Immunodeficiency Syndrome AIMs Agricultural Input Markets [Development Project] ALDSAP Agricultural and Livestock Development Strategy and Action Plan APIP Agricultural Productivity Investment Programme CAADP Comprehensive Africa Agriculture Development Programme CAP Country Assistance Plan CAS Country Assistance Strategy CCA Common Country Assessment CFA Core Function Analysis CISANET Civil Society Agriculture Network CNFA Citizens Network of Foreign Affairs COSOP Country Strategic Opportunities Paper CSP Country Strategy Paper DFID Department for International Development EDF European Development Fund EPA Extension Planning Areas EU European Union FAO Food and Agriculture Organization GDP Gross Domestic Product GNP Gross National Product GoM Government of Malawi HIPC Highly Indebted Poor Country HIV Human Immunodeficiency Virus IDA International Development Agency IFAD International Fund for Agricultural Development IFDC International Fertilizer Development Centre IMF International Monetary Fund IRLADP Irrigation, Rural Livelihoods and Agricultural Development Project JICA Japan International Cooperation Agency JOCV Japanese Overseas Co–operation Volunteers JSA Joint Staff Assessment (IMF/IDA) LRDC Land Resources Development Centre MASIP Malawi Agricultural Sector Investment Programme MDG Millennium Development Goals MEPD Ministry of Economic Planning and Development MIM Malawi Institute of Management MIPA Malawi Investment Promotion Agency MoAIFS Ministry of Agriculture Irrigation and Food Security MPRS[P] Malawi Poverty Reduction Strategy [Paper] MTEF Medium–Term Expenditure Framework NAG National Action Group NASFAM National Smallholder Farmers’ Association of Malawi NEPAD New Partnership for African Development NGO Non Governmental Organization iii NEPAD – Comprehensive Africa Agriculture Development Programme Malawi: National Medium–Term Investment Programme (NMTIP) NIP National Indicative Programme (EU) NPAN National Plan of Action for Nutrition PAMA Paprika Manufacturers Association PER Public Expenditure Review PIAM Poultry Industry Association of Malawi PRGF Poverty Reduction Growth Facility PROSCARP Promotion of Soil Conservation and Rural Production Project PRSP Poverty Reduction Strategy Paper RDP Rural Development Project Rumark Malawi Rural Market Development Trust SAP Structural Adjustment Programme SFFRFM Smallholder Farmers Fertilizer Revolving Fund of Malawi TAMA Tobacco Association of Malawi TCC Tobacco Control Commission UNDAF United Nations Development Assistance Framework USAID United States Agency for International Development iv NEPAD – Comprehensive Africa Agriculture Development Programme Malawi: National Medium–Term Investment Programme (NMTIP) Preface In an effort to halt and reverse the decline of the agricultural sector in the continent, the African ministers for agriculture unanimously adopted, at the 22nd FAO Regional Conference for Africa, held on 8 February 2002 in Cairo, a resolution laying down key steps to be taken in relation to agriculture in the framework of the New Partnership for Africa’s Development (NEPAD). As a follow–up to this resolution, they endorsed, on 9 June, 2002, the NEPAD Comprehensive African Agriculture Development Programme (CAADP). The recent Declaration on Agriculture and Food Security in Africa, ratified by the African Union Assembly of Heads of State and Government during its Second Ordinary Session, held in Maputo between 10 and 11 July 2003, provided strong political support to the CAADP. During this session, the Heads of State and Government agreed to adopt sound policies for agricultural and rural development, and committed themselves to allocating at least 10 percent of national budgetary resources to the agri–rural sector within five years. The CAADP provides an integrated framework of development priorities aimed at restoring agricultural growth, rural development and food security in the African region. In its very essence, it seeks to implement the key recommendations on food security, poverty reduction and sustainable use of natural resources, made at recent global conferences. The CAADP comprises five pillars:1 1. Expansion of the area under sustainable land management and reliable water control systems. 2. Improvement of rural infrastructure and trade–related capacities for improved market access. 3. Enhancement of food supply and reduction of hunger. 4. Development of agricultural research, technological dissemination and adoption to sustain long–term productivity growth. 5. Sustainable development of livestock, fisheries and forestry resources. As an immediate follow–up to the Maputo Declaration, representatives of 18 African ministries for agriculture from member countries of the NEPAD Implementation Committee, the NEPAD Steering Committee, the African Development Bank, the World Bank, the International Fund for Agricultural Development, the World Food Programme, FAO and civil society, participated in a meeting held in Rome on 17 September 2003, in order to discuss the implementation of the CAADP, and more specifically the: • Methodology for the review/update of the national long–term food security and agricultural development strategies. • Preparation of National Medium–Term Investment Programmes (NMTIPs). • Formulation of the related “Bankable Investment Project Profiles” (BIPPs). 1 Pillar 5 was initially not part of CAADP, but has been added in recognition of the importance of the sub– sectors. 1 NEPAD – Comprehensive Africa Agriculture Development Programme Malawi: National Medium–Term Investment Programme (NMTIP) It is within this context that the Government of Malawi, in an effort to reinforce its interventions aimed at fighting poverty and food insecurity, has requested FAO to assist in preparing a NMTIP and a portfolio of BIPPs, with the aim to: • create
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