For years, Malawi’s agricultural backbone, which sustains three-quarters of its population, has been a source of both life and staggering economic drain. Now, facing a looming crisis of hunger—with more than one in four Malawians projected to face severe food insecurity in early 2025—the nation is undertaking a critical, World Bank-supported overhaul of its farming policies to transform its fortunes.
Agriculture accounts for nearly a quarter of Malawi’s GDP, with the food sector employing a remarkable 93% of Malawians in rural areas. Yet, weak livelihoods, poverty, and recurrent shocks have driven a sharp rise in hunger. The path to prosperity, officials believe, lies in redirecting resources to more impactful and cost-efficient programs, charting a course from subsistence to resilience.
A Costly, Failed Gambit
The most significant hurdle has been the nation’s prior Affordable Input Subsidy Program (AIP), a massive effort to provide farmers with crucial, cut-rate fertilizer. For all its noble intent, the program became a fiscal sinkhole, accounting for an astonishing 75 percent of the Ministry of Agriculture’s budget around 2015.
The initiative was plagued by delays, ballooning costs, and a financially untenable subsidy model that often failed to reach the most productive farmers. The unintended consequences were stark: food supply barely improved, the program failed to boost overall food and nutrition security, and worse, it deepened the country’s reliance on maize. This maize monoculture led to widespread micronutrient deficiencies, stagnating yields, and severe soil degradation, all while climate conditions worsened.
A Systems Approach: Targeting Productivity Over Entitlement
Recognizing the urgent need for change, the Ministry of Agriculture, Irrigation and Water Development has begun a systemic reform. The new approach, first initiated in 2020, significantly reduces the size of the subsidy and fundamentally changes the nature of its distribution.
The key shift is a focus on targeting the most productive farms. The government is using an online platform that tracks and manages farming data to identify roughly one million productive farmers as the primary beneficiaries of the revamped AIP. Those with the lowest incomes, previously reliant on the subsidies, are being transitioned to alternative cash transfer and public works programs as compensation. Furthermore, the entire system is moving toward a more sustainable private sector-led procurement and distribution model.
“What we are now doing is to reform the subsidy program,” said the Minister of Agriculture, Hon. Samuel Kawale. “More money has gone toward commercial farming where a lot of Malawians are very happy to find themselves—away from the subsidies to the commercial farming, which, for us, we consider to be a milestone.”
Digital Tools and E-Vouchers to Revolutionize Farming
With World Bank support, including a US$20 million grant from the FoodSystems 2030 Trust Fund, Malawi is strengthening its digital infrastructure, research, and irrigation under the regional Food System Resilience Program.
A new e-voucher system, built on a secure digital farmer registry, is at the heart of the reform’s next phase. This system is testing data-driven subsidy allocation in twelve districts and is bundled with enhanced soil testing, extension services, and vital soil and water conservation practices. Farmers receiving the subsidies are now required to adopt at least one conservation measure.
The flexible e-voucher schemes allow farmers to choose their inputs, with expanded options now including legume seeds, lime, and organo-mineral fertilizers, addressing the over-reliance on maize.
Early Results and Ambitious Goals
The results of a soil health pilot are already promising. The initiative supported over 23,000 farmers, 43% of them women, providing inputs and training in soil and water improvement practices.
“With more yields, women and children’s lives have improved. We have more food in our households,” said one female farmer participating in the pilot. Another noted, “The skills I’ve gained through this endeavor are invaluable. I will continue to use them even if the project phases out.”
Soil samples were collected from 1,500 farmers to provide tailored fertilizer and soil management recommendations, resulting in a marked increase in maize yields.
Malawi’s ambitions are high. The ultimate goal, according to Minister Kawale, is clear: “Remember, our goal is to make sure that we end hunger. We increase income generation at household level as well as exports for future generations.” The nation is now set to double down on training for farmers, agro-dealers, and extension officers as it enters the next critical phase of reform.
