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Page 1 1.0 BACKGROUND 1.1 Introduction Malawi's Economy 1.0 BACKGROUND 1.1 Introduction Malawi’s economy depends very largely on agriculture. Over the past decade rainfall distribution and pattern has been changing frequently to the disadvantage of the agricultural sector whose agricultural production is mostly rain fed despite concerted efforts of promoting irrigation. About 180,000ha of irrigation schemes have been developed so far against a potential of 800,000ha of irrigable land. Over 42,000ha of this potential is in the Shire Valley. The major crops that are being grown under irrigation are sugarcane and rice, maize in low lying areas which is mostly sold green on-the-cob, and supplementary irrigation of tea, coffee, and macadamia. Maize is the major staple food followed by rice, cassava, sorghum and millet. The Shire Valley has the potential of growing crops under irrigation and thus contributes to the food security and poverty alleviation initiatives. This potential has remained virtually unexploited because of lack of readily available water for irrigation. The most reliable source is the Shire River and development of irrigation in the Shire Valley would mean harnessing these waters. However, the Shire River is also the source of electrical energy for the whole country. Only recently a hydropower generation plant was commissioned at Kapichira Falls on the Shire River. Thus, there is competition of water use among the various stakeholders that rely upon the Shire River for the provision of their services. The notable stakeholders are Blantyre Water Board and Electricity Supply Commission (ESCOM). The Shire Valley Irrigation Project is being planned for development to cover an area of 42,320ha. Development has been split into two phase. The first phase lies between Chikwawa township and Mwanza River and covers an area of 17,320ha comprising 9,200ha already developed by ILLOVO, 180ha of Kasinthula Irrigation Shceme and 7,940ha of new development by SVIP. The second phase lies between Mwanza River and Thangadzi River near Bangula and covers an area of 25,000ha. Page 1 For these new developments, irrigation water will be abstracted from Shire River at Hamilton Rapids which is about 3.0 km upstream of Kapichira Falls. The project water requirements are 23m 3/s for the first phase and 55m 3/s at full development. Water will be conveyed to the fields through open canals. The canal will pass through Majete Game Reserve during the first phase construction and Lengwe National Park during the second phase construction. Thus, the key stakeholders that will be impacted by this project are the Department of National Parks and Wildlife and ESCOM, in addition to the local community and the commercial and community service establishments within the project area. According to Environmental Management Act of 1996, Part V, Section 25, an environmental impact assessment (EIA) is required for the Shire Valley Irrigation Project (SVIP) as it is a prescribed project and Category A project according to the World Bank standards. The Government of Malawi commissioned Coda And Partners in association with Ninham Shand (Pty) Ltd to carry out the Shire Valley Irrigation Project which entailed design of irrigation system networks including all associated structures and related infrastructure for social support services such as domestic water supply and sanitation, access roads and marketing services. Other aspects of the assignment include mitigation of environmental impacts. The Consultant commenced work on 13th July 2005. 1.2 Development Strategy 1.2.1 Background In the past, several technologies have been employed to increase the land under irrigation and these have been targeting mostly the smallholder farmers. However, the Government is now changing its approach to irrigation development and has committed itself to have an integrated approach through the Irrigation and Integrated Infrastructure Development Programme. This entails implementation of three major irrigation development projects, one in each region, which will complement the current irrigation efforts which are mostly small scale. This will start with the implementation of the Shire Valley Irrigation Project, which is located in the Southern Region of Malawi. Page 2 1.2.2 The Project Development Objective The major objective of the Shire Valley Irrigation Project is to exploit the high irrigation potential of the Valley through the development of gravity-fed irrigation system from the Shire River, expanding coverage and providing complementary infrastructure and services in order to increase agriculture production and farm- based incomes, hence ensuring food security and poverty reduction. Apart from improvement of standards of living and household food security of the community, the project offers opportunities for development of agro-based industries and generation of foreign exchange earnings. 1.2.3 Ecological Environment Deforestation, overgrazing, soil degradation, flooding and water pollution are current environmental problems in the area with wider ramifications on land and general productivity. Protection of the environment is one of the Government of Malawi’s (GoM) priority activities. The introduction of the SVIP will alter the situation particularly if environmentally sound activities as included in the design of this project are adhered to. The management of the project together with the introduction of environmentally-friendly activities such as agro-forestry, woodlot establishment, proper water and land utilization, monitoring and controlling of vector borne diseases, environmental rehabilitation, will enhance the quality of the environment, minimize the effects of flooding and soil loss, and create a sustainable environment for irrigation and hydropower development. 1.2.4 Project Target The SVIP targets the development of a large gravity-fed irrigation project for the ocal community and especially smallholder farmers for the production of main food crops, such as maize, rice, sorghum and cash crops including cotton and sugarcane. There will be vegetables and other crops that will be grown in rotation with the main crops. Other activities will include livestock rearing, fish farming and agro-forestry. The project will also promote agro-processing and related industry for adding value to the crops to improve farmers’ income and generate essential foreign exchange. Page 3 The development of the Shire/Zambezi Waterway will open up access routes for export marketing opportunities for the agricultural produce and products from this project area. The project will promote a high degree of beneficiary farmer participation and women involvement in agricultural activities and project management through their Water Users Associations. The project will also provide a gravel road network to serve the irrigation project and the communities living in the project area, as well as promote sustainable management of the environment through improved conservation farming system. The project will also incorporate rural and urban water supply services in order to reduce the community’s dependence on boreholes which dry up during the dry seasons or shallow wells with very poor quality water. This process will mitigate health hazards and improve the health and sanitation of the farming communities. 1.2.5 Expected Results The expected results of this project are as follows: • Diversified crop production in the project area with maize, rice, sugarcane, cotton, sorghum, high value vegetable crops, among other crops, grown under irrigation. • Cropping pattern that will be adopted will intensify land use, especially where double cropping will be practiced; • Increase production per unit area of crops that can be marketed locally and internationally; • Increase food availability at household, as well as national level from the current 70 per cent of household requirement to a surplus production; and • Increase foreign exchange earnings from cash crops and processed agricultural products; • Promote livestock rearing, fish farming, agro-forestry; • Improvement of access to production supporting services (credit, extension and research, marketing, transport, storage, processing) and social facilities and services (education, health, domestic water supply, and telecommunications); and Page 4 • Raise standards of living and improved nutritional status due to diversification of diet; • Increase employment in the project area by 47 per cent; improve access to production supporting services (credit, extension and research, marketing, transport, storage, processing); • Improve access to social facilities and services in accordance with the standards set by the GOM with regard to education, health, domestic water supply, and telecommunications; and • Raise standards of living and improved nutritional status due to diversification of diet with vegetables and fruits; • Improve marketing systems; • Improve crop and livestock husbandry practices; and • Minimize environmental degradation through rationale and controlled use of available resources by the beneficiaries, through community development and capacity building. The project will contribute to meeting the Millennium Development Goals on food security and poverty alleviation, and gender balance. 1.2.6 Multi-sectoral Approach One of the main objectives of Malawi Economic Growth Strategy (MEGS) and Malawi Poverty Reduction Strategy Paper (MPRS) is to institute programmes for poverty reduction and improve the Malawian population welfare economically. This broad objective can only be achieved by concerted efforts
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