World Bank sees more pressure on Malawi's economy

By Gladys Nthenda

The World Bank Group says the prevailing rising cost of living;fertilizers and fuel price hike will put even more pressure on Malawi’s agriculture system and economy and is of concern. 

With about 66.4 million people expected to be food insecure by September this year across Sub-Saharan Africa in total, the bank urges countries to diversify resource production, their technologies and not to rely on a single source of food products especially the ones subject to climate shocks. 

The bank’s Group Country Manager for Malawi Hugh Riddell made the observations during a dissemination event on insect and hydroponic farming in Africa- the new circular food economy in Lilongwe. 

Insect and hydroponic farming is the frontier of farming technology globally as very few insects farms exists in the world and Malawi will be one of the three countries in the region that will be part of a pilot process. 

It’s a beginning of a new sector considering the information and analysis to be done on how it works, its constraints and what the policy environment needs to be put in place. 

If it works out and is something suitable for Malawi, the World Bank has pledged to support government and the private sector in taking it to a larger scale. 

Riddell (R) with some of the participants at the meeting 

According to the Bretton Woods institution, together with the region, Malawi has a huge potential to solve problems such as food sufficiency, job security and more resilience in creating agricultural and food systems at less cost to the environment.

The Bank’s country manager observed this is because Malawi and other countries are grappling with issue of food production techniques which are costly to the environment and the natural resource base.

This is evidenced by degraded soils and the environment while hydroponic farming insect production is actually a very low intensity process and much more efficient. 

Riddell noted that despite the process being at an early stage, research however shows there is a very huge potential for insect farming and hydroponic agriculture to meet the growing needs of food security.

He expressed fear over this season’s late rains relatively short coupled with Tropical storms Ana and Gombe in January and February respectively, would affect this year’s harvest.

 “And this time therefore is the right time to diversify, it’s the right time to try new things try new technologies especially if they gonna meet the needs of food security and job creation.

Modeste: It will be an economic opportunity for them to be self-reliant 

“That means more need for food assistance in the short term; but what it means for real in the medium and longer term is that countries diversify resource production, diversify their technologies and do not rely on a single source of food produced especially one that is subject to climate shocks. 

“So I think for Malawi the lesson is food security is challenging already this year; is likely to be more challenging with the Russia-Ukraine crisis and with the price hikes that we’re seeing, now is the time to diversify to really invest in new technologies and the World Bank is there to support that process,” he pledged. 

United Nations High Commission for Refugees (UNHCR) said 90 percent of persons of concerns comprising refugees and asylum seekers are from rural areas and are already used to farming, market gardening and this presents a good opportunity in terms of jobs, income and efforts to protect the environment at Dzaleka camp.

 Its Country representative Kouame Modeste stated this will therefore add value on the nutrition and economic opportunities for them hence welcomed the World Bank initiative. 

“You know that persons of concerns they depend on food assistance basically and I feel this can add more nutrition value so this one is key. It will create job opportunities for them because of certain work on this project. It can have income and also what is also key is waste management because we need to protect the environment in Dzaleka camp it’s very key. 

“So it will be an economic opportunity for them to be self-reliant. This is why the government is trying to convert Dzaleka camp into an economic hub in order to enhance self-reliance for both refugees and host communities. So it will be an added value and we are very happy to welcome the project in Malawi”. 

Malawi has 52,000 asylum seekers in from Rwanda, Burundi and the Democratic Republic of Congo (DRC). After the meetings with different stakeholders, the Bank will embark on pilot project in partnership with the United Nations Commission for refugees (UNHCR) which will be a learning process for now.

This article was first published by kulinji.com