Malawi’s economy heavily relies on agriculture, which contributes nearly a quarter of GDP and employs around three-quarters of the population, primarily through small-scale subsistence farming. In rural areas, 93 percent of Malawians work in the food sector. Despite this, poverty, recurring shocks, and weak livelihoods have intensified food insecurity, with over one in four Malawians facing crisis levels in early 2025. To address these challenges, Malawi is pursuing agricultural reforms with support from the World Bank, aiming to shift from a cycle of inefficiency and dependency to one of productivity and resilience.
The previous input support program, which provided subsidized fertilizers to farmers, imposed a heavy fiscal burden, consuming roughly 75 percent of the Ministry of Agriculture’s budget around 2015. The program suffered from delays, cost overruns, and an unsustainable subsidy model. Even with substantial spending, it failed to reach the most productive farmers, improve food supply significantly, or achieve its intended objectives. Overreliance on maize resulted in micronutrient deficiencies, stagnating yields, and soil degradation amid worsening climate conditions.
In response, the Ministry of Agriculture, Irrigation and Water Development launched reforms to the Affordable Input Subsidy Program (AIP) in 2020. The program was reduced in scale and restructured to target farms capable of productively using inputs. Low-income beneficiaries were shifted to cash transfer and public works programs, while procurement and distribution were increasingly led by the private sector. These reforms were supported by the World Bank through initiatives promoting farmer alliances and private sector-led growth, utilizing an online platform to improve targeting, ensuring that roughly one million of the country’s most productive farmers are primary beneficiaries of the AIP.
Further reforms include strengthening digital infrastructure, research, and irrigation under the regional Food System Resilience Program. A US$20 million grant from the FoodSystems 2030 Trust Fund supports a pilot to improve AIP’s design, focusing on soil health, productivity, and livelihoods. The pilot tests a new e-voucher system linked to a digital farmer registry, allowing data-driven allocation of inputs in twelve districts. The program now bundles subsidies with extension services and soil and water conservation practices, with farmers required to adopt at least one conservation measure. Subsidies have expanded to include legume seeds, lime, and organo-mineral fertilizers, aiming to enhance sustainable fertilizer use and boost performance-based outcomes.
Early results from the soil health pilot are promising. Over 23,000 farmers, 43 percent of whom are women, received farm inputs and training in soil and water management practices. Extension workers were also trained, and soil samples from 1,500 farmers provided tailored recommendations on fertilizer use and conservation. Most participating farmers applied the inputs and adopted conservation measures, resulting in increased maize yields. Participants have highlighted the lasting value of the skills gained, signaling potential long-term improvements in farm productivity and livelihoods.
Malawi’s government views these reforms as a milestone in transforming the country’s food system. Minister Samuel Kuwale emphasized that the focus is shifting toward commercial farming, increasing household incomes, and boosting exports for future generations. The next phase of reforms will concentrate on expanding training for farmers, agro-dealers, and extension officers, while refining the e-voucher system to ensure that benefits reach intended recipients efficiently. These efforts represent a strategic step toward more resilient, productive, and inclusive agriculture in Malawi.
