Minister of Local Government and Rural Development Dr Ben Malunga Phiri says strengthening Malawi’s partnership with the International Fund for Agricultural Development (IFAD) is crucial to President Professor Arthur Peter Mutharika’s agenda of transforming rural livelihoods, reducing poverty and driving sustainable economic growth.
Phiri made the remarks on Wednesday during a bilateral meeting with IFAD President Dr Álvaro Lario on the sidelines of the United Nations High-Level Meeting on the New Urban Agenda in New York.
The meeting reviewed progress under the Transforming Agriculture through Diversification and Entrepreneurship (TRADE) Programme, including its achievements, future financing and opportunities to expand IFAD’s support for Malawi’s agricultural transformation.
Phiri said the Mutharika administration views strategic partnerships with international development institutions as essential to modernising agriculture and improving the livelihoods of rural communities.
“Malawi remains an agriculture-based economy but aspires to transition towards agro-processing, manufacturing and value addition. Expanding local production and processing will reduce dependence on imports, conserve foreign exchange and contribute to economic recovery,” he said.
The minister thanked IFAD for its continued support, describing the institution as a trusted development partner that has helped advance rural transformation, agricultural commercialisation and poverty reduction.
He noted that although the TRADE Programme faced implementation challenges in its early years, it has gathered momentum since September 2025 following the introduction of an implementation acceleration plan.
According to Phiri, the programme has financed the construction of rural roads, warehouses and bulking centres, while work is underway on seven Rural Growth Centre markets aimed at improving market access, reducing post-harvest losses, creating jobs and boosting local economic development.
He also recalled representing Malawi at the signing of the TRADE Programme Financing Agreement in Rome in 2020 during Mutharika’s first administration, saying the programme has since made significant progress in improving rural livelihoods.
To sustain the gains, Phiri asked IFAD to approve Malawi’s request for a no-cost extension and additional financing of about US$30 million to enable completion of the seven Rural Growth Centre markets.
He also proposed a second phase of the TRADE Programme focusing on agricultural value chains, rural infrastructure, agro-processing, climate-smart agriculture and youth employment.
In response, IFAD President Dr Álvaro Lario commended Malawi’s focus on value addition and agricultural commercialisation, saying the priorities align with IFAD’s global mission.
Lario reaffirmed IFAD’s commitment to supporting Malawi’s development agenda and encouraged stronger partnerships with the private sector, particularly small and medium-sized enterprises, alongside innovative financing mechanisms to attract greater investment.
Phiri assured IFAD that the government remains committed to strengthening programme implementation and ensuring all outstanding activities are completed on time to deliver lasting benefits to rural communities.
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