AGCOM-2 Hailed as a Key Driver of Sustainable Agricultural Commercialization
The Agricultural Commercialisation Project 2 (AGCOM-2) continues to receive widespread praise from cooperatives across Malawi, with many describing it as a transformative force aligned with the country’s Malawi 2063 vision for economic growth and sustainability.
In an exclusive interview, Martin Tembo, Chairperson of Titha Kuwala Cooperative from Mchinji’s Traditional Authority Nyoka, recalled how accessing AGCOM-2 funding motivated the cooperative to apply for grants to address equipment challenges.
Formed in 2018 and officially registered as a cooperative with AGCOM financing in 2024, Titha Kuwala Cooperative specializes in soya bean production and operates within the Mikundi Extension Planning Area (EPA). The cooperative boasts 46 members, of which 33 are women, showcasing AGCOM-2’s commitment to gender inclusivity.
Through the AGCOM-2 Matching Grant, the cooperative secured a total of MK133,875,000, with MK19,125,000 contributed by its members. With this funding, they acquired:
- A 90-110 HP tractor for MK70 million
- A 5-metric ton trailer for MK40 million
- A 4-row planter for MK13 million
- A harrow for MK9.2 million
- A disc ridger for MK8.5 million
- A 4-disc plough for MK5.8 million
- An Environmental and Social Management Plan (ESMP) for MK6.5 million
The total expenditure reached MK153 million, significantly enhancing their production capacity.
“Before AGCOM-2, timely planting was a major challenge due to a lack of equipment. Today, we’re projecting to harvest over 330 metric tonnes of soya beans,” said Tembo.
In Senior Chief Kabudula’s area in Lilongwe, the Ukwe Beef Producers and Marketing Cooperative is another shining example of AGCOM-2’s transformative impact.
Benedicto Zimba, the cooperative’s treasurer, explained that their goal was to ensure a sustainable beef supply following meat shortages in 2020. However, financing hurdles delayed their plans until AGCOM-2 stepped in with a grant of MWK252,875,000.44, later revised to MWK177,012,500.06. Members contributed MWK25,287,500.06 in cash and MWK50,575,000.13 in-kind.
The cooperative’s projects include:
- Construction of a livestock general house, fattening house, and slaughterhouse
- A cold room for meat preservation
- Procurement of a chaff cutter, feed mill, and mixer
- Borehole drilling for water supply
- Acquisition of 110 Malawian Zebu cattle and 4 Brangus bulls
- Installation of water storage tanks and feeding troughs
“AGCOM-2 has been a game changer. Beyond infrastructure, we’ve gained skills in bookkeeping, accounting, financial literacy, good agricultural practices, gender empowerment, and leadership,” Zimba said.
According to Dr. Ted Nakhumwa, National AGCOM Coordinator, AGCOM-2 is making remarkable strides.
“Since AGCOM-2’s launch, we’ve focused on public sensitization and building productive alliances to ensure farmers meet market demands. We’ve already disbursed MWK6.4 billion and are targeting projects that add value to agricultural products,” Nakhumwa explained.
AGCOM-2 was officially launched by President Dr. Lazarus McCarthy Chakwera in November 2023 at Chinthembwe Ground in Ntchisi. The project builds on the success of AGCOM-1, which was funded with USD 95 million by the World Bank. AGCOM-2 now enjoys an increased budget of USD 325 million, signaling the government’s commitment to scaling up Malawi’s agricultural value chains for both domestic growth and exports.
“With support from the World Bank, Malawi is advancing its vision for mass production and value addition to boost exports. AGCOM-2 is key to this journey,” President Chakwera remarked during the launch.
As AGCOM-2 continues to empower cooperatives and smallholder farmers, it is clear that the project is not just about financing but also about sustainability, capacity building, and economic transformation. With its focus on value addition, market linkages, and gender inclusivity, AGCOM-2 is laying the foundation for a resilient and commercially vibrant agricultural sector in Malawi.
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