By Patience Longwe:
Malawi Government has welcomed a EUR143 million, about K287 billion, European Union investment package aimed at strengthening agriculture, energy, education and skills development as the country pursues its long-term development goals under Malawi 2063.
Minister of Finance, Economic Planning and Decentralisation Joseph Mwanamvekha said the package would support three areas that are central to Malawis economic transformation, with agriculture receiving EUR35 million under the AgriCatalyst Malawi programme.
The programme will focus on rice, soybean and coffee value chains, targeting smallholder farmers, women and agricultural micro, small and medium enterprises.
Mwanamvekha noted that more than 300,000 farmers grow rice in Malawi, yet the country still imports a significant share of its requirements, presenting an opportunity to increase local production, create jobs and reduce reliance on imports.
Energy is another major component of the investment. The Malawi Energy Efficiency Enhancement Programme, known as ME3, will receive EUR125 million, comprising EUR40 million from the European Union and EUR85 million in co-financing from the European Investment Bank.
Mwanamvekha said the programme would support improvements in electricity generation, transmission, distribution and system control, while also developing skills among young people and women.
“Reliable electricity is the lifeblood of a modern economy. Without it, industries cannot grow,” he said.
The largest share of the new package, EUR68 million, will support the Eyes of Malawi programme, which will focus on secondary education, teacher development, school feeding, Technical, Entrepreneurial and Vocational Education and Training Authority programmes and social protection.
Mwanamvekha said the focus on young people was particularly important because about 80 percent of Malawis population is below 35 years.
“If energy powers the economy of today, education powers the economy of tomorrow,” he said.
European Union Ambassador to Malawi Daniel Aristi said the package forms part of broader European Union cooperation with Malawi worth more than EUR500 million and will be implemented through three key areas.
Aristi said the agricultural component would use a farm-to-market approach covering inputs, irrigation, skills, finance and market access, while the energy funding would support electricity generation, transmission and distribution, including rehabilitation of power stations affected by climate shocks.
He added that the investment builds on Team Europe support to Malawis energy sector, including the Mpatamanga hydropower project.
Aristi said some of the programmes would run for up to seven years, with accountability requirements incorporated into agreements between the European Union and government.
Mwanamvekha said the three areas were closely connected, arguing that reliable energy would support agriculture and industry, while a skilled workforce would strengthen productivity and economic growth.
