The International Fund for Agriculture Development (Ifad)   Ifad president Gilbert Houngbo signed an agreement with the Minister of Finance, Economic Planning and Development Joseph Mwanamvekha, concerning a combination of loan and grant agreement valued $125.4 million (about K93 billion) in Rome, Italy.

While a statement by Ifad has revealed that the sum will benefit about 300 000 vulnerable farming families, the funds will be made available under the Transforming Agriculture through Diversification and Entrepreneurship Program (Trade), seeks to increase farmers’ productivity and strengthen market access. The development happens after Malawi’s most relied cash crop, tobacco, has been declining in sales on the market, following low demand by buyers who were pressured by anti-smoking lobbies.

Ifad country director for Malawi Ambrosio Barros said the program will strengthen the capacity of smallholder farmers, organise them into producers’ organisations and promote partnerships with small and medium enterprises (SMEs)

While the funds are available for the diversification drive,  Tobacco Association of Malawi (Tama), the largest grouping of tobacco growers, has rebranded into Tama Farmers Trust, taking on board other crop value chains in the process. The rebranding exercise follows the association’s 2019 Annual Congress which ratified that the institution be rebranded in the wake of the slowdown in the global tobacco consumption, among others.