Promoting Climate-Smart and Resilient Agricultural Value Chains in Kasungu and Mzimba Districts of Malawi

Boosting entrepreneurship in Kasungu and Mzimba to expand and strengthen sustainable agricultural value chains with a focus on enterprises in the climate-smart agricultural space.

The economic situation in Kasungu and Mzimba is far from ideal: poverty rates reach 67% and 38,6% respectively, demand for tobacco -the main industry- is decreasing and the the lack of structured market and value chains that ensure sufficient capacities to process needed locally grown food crops, keeps farmers struggling with low returns and only few succeed to move beyond subsistence farming. Further challenges in the sector, including high fertilizer prices, lack of diversification in crop production, reliance on rain-fed agriculture, widespread soil erosion, and susceptibility to climate change’s negative consequences hinder the economic potential of the agriculture sector. MSMEs are well suited to play a crucial role in diversifying the agricultural production while forming profitable agri-food value chains spreading across rural and urban areas. Operating green business models, for example by applying climate-smart agricultural practices or energy-efficient, circular production techniques, MSMEs contribute to climate change adaptation and mitigation. At the same time, they also create local jobs, for often deprived populations like youth, women and low-income households.

Supporting enterprises directly and building an enabling ecosystem

Our experience shows that a lack of business and financial literacy skills, a shortage of adequate practical business training (e.g. business registration or product certification), lack of centres of excellence, incubators and accelerators as well as a lack of access to business finance inhibit the emergence of financially sustainable start-ups and the scale of growth stage MSMEs in the agricultural sector. Through SEED's approach, the project focuses on proving practical business training, in this case for entrepreneurs and enterprises operating in the agricultural field and using climate-smart practices. The goal of the targeted businesssupport for climate-smart MSMEs is to drive and leverage the potential of eco-inclusive climate-smart enterprises in the agricultural value chains such as aquaculture, horticulture and legumes while reducing emissions to mitigate climate change, building local climate resilience, as well as offering communities in Kasungu and Mzimba climate-smart products, services and employment. Furthermore, SEED aims to fortify the local Business Development Service (BDS) network and foster access to finance for climate-smart agricultural value chain actors in collaboration with selected fintech companies to scale their financial instruments to meet agrobusiness financing needs in Kasungu and Mzimba. 

Building on prior experience in the country

With the support of the Government of Flanders, SEED has been active in Malawi since 2014. Building upon SEED's success in Malawi, SEED has excellent potential to build upon experiences, partners, and networks developed during previous engagements to support enterprise development and advance community resilience driven by a thriving and sustainable climate-smart agro-business sector. Through the design of a holistic and complementary support approach and programme design, the project aims to drive and leverage the potential of eco-inclusive climate-smart enterprises in the agricultural value chains, such as aquaculture, horticulture and legumes while reducing emissions to mitigate climate change, building local climate resilience, as well as offering communities in Kasungu and Mzimba climate-smart products, services and employment.