Philip Moris International, partners Malawi Govt in accelerating mechanization of agriculture
Philip Morris International (PIM), through its implementing Partner; Pyxus Agriculture Malawi, has launched the Malawi Entrepreneur Mechanism Initiative which aims at supporting tobacco farmers with tractors on loan.
In this initiative, farmers will get a tractor on loan after paying 20% deposit, with an 11% interest. The loan will be paid back in five years.
This is to encourage the use of mechanisms for tobacco farmers to ensure sustainable tobacco growth, empower Malawian farmers and foster economic growth in the region.
In an interview on Thursday during the launch of the initiative, PMI Vice President for Global Technical Operations, Pedro Braga, said this innovative revolving loan structure will ensure sustainability by reinvesting principal repayme
nts into acquiring additional machinery for next beneficiaries, thereby supporting a continuous growth cycle for local businesses.
“Malawi’s agricultural economy, comprising smallholder, semi-commercial and commercial growers, has historically relied on tobacco as a primary export commodity, contributing significantly to the country’s GDP.
“Recognising the importance of mechanization in enhancing crop diversification and agricultural productivity, PMI’s initiative seeks to address the need for machinery access among smallholder farmers, thereby driving inclusive and sustainable growth in the sector,” he said.
Minister of Agriculture, Sam Kawale, said this initiative is in line with Malawi vision 2063 pillar number 1 which talks about agricultural commercialization and Mechanization.
‘The mechanization part is what we are witnessing today where we are scaling up the use of tractors and other implements to help with the production in our fields. For a very long time, we have been using holes and they have not done us justice in a way that they have degraded our land in terms of fertility. What we are aiming to do in this initiative and other initiatives in the Ministry of Agriculture, when it comes to mechanism is to empower our farmers,” he said.
He therefore said this is an innovative way in which Philip Morris International has introduced its low interest loan to be paid over a period of five years, which will help farmers own equipment.
One of the beneficiaries, Temwanani Phiri, said it is not easy to buy a new tractor on cash. He applauded this initiative’s flexibility because payment is quarterly over five year period.
Philip Morris international has given out 23 tractors accompanied with equipment to the farmers.
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