Neef Fertilizer Loans Offer Hope to Struggling Farmers Amid Rising Costs
Amid soaring fertilizer prices that have pushed a single 50-kilogram bag to an eye-watering K115,000, the government’s fertilizer loan program through the National Economic Empowerment Fund (Neef) is providing a lifeline to struggling smallholder farmers across Malawi.
For Grace Namaona, 67, from Chafuta Village in Thyolo District, the loans have rekindled hope for a better harvest. “My field can produce enough grain to feed my family and surplus for sale, but fertilizer prices have flown beyond my reach,” she said. This year, Namaona joined her local farming group, Tikondane Farmers Group, to access a Neef loan, allowing her to secure two bags of fertilizer repayable after the harvest.
The initiative targets farmers who missed out on the Affordable Inputs Programme (AIP), providing flexible loans to help them overcome skyrocketing input costs and boost crop production. Government has allocated K12 billion to the program, which aims to reach 400,000 farmers by April.
Stoneck Limbanga, 69, from Mponda Village in Blantyre, praised the program for its impact on his family’s livelihood. His nine-member farming group received 20 bags of fertilizer on loan last year, enabling him to harvest 50 bags of maize despite poor rains. “Agriculture sustains my family. This loan helped me pay my son’s school fees while keeping enough food for the household,” Limbanga said.
While the initiative has brought much-needed relief, some farmers, like Alice Gomile from Tanganyira Village, worry about the late distribution of the loans. “The fertilizer arrived two to three months into the rainy season, which might affect our yields and ability to repay the loans,” she noted.
Neef Executive Director Humphrey Mdyetseni acknowledged the logistical challenges but assured farmers of the program’s commitment. “We remain focused on improving food security. Farmers must repay their loans promptly to keep the program sustainable,” he said.
Speaking at Chilangoma School in Blantyre, Minister of Information Moses Kunkuyu reaffirmed the government’s dedication to supporting farmers. “We are empowering farmers who missed out on AIP with flexible loans to enhance production and fight hunger,” Kunkuyu said.
Despite challenges, the program offers a beacon of hope to farmers like Namaona, who are determined to make the most of the opportunity. “This loan gives me a chance to produce enough food for my family and even sell the surplus. It’s a step toward a better future,” she said.
According to the 2024 Global Hunger Index, Malawi is grappling with serious hunger affecting 5.7 million people, driven by poverty, climate shocks, and rising costs. However, initiatives like Neef’s fertilizer loans provide a critical safety net, helping farmers sustain their livelihoods and feed their communities.
