Launched in 2021, the European Investment Bank’s (EIB) Technical Assistance Programme is helping to advance agriculture in Malawi by fostering financial inclusion, empowering smallholder farmers, promoting climate-smart technologies and sustainable farming practices. Implemented by the Frankfurt School of Finance & Management in collaboration with Imani Development, this initiative is designed to integrate smallholder farmers into agricultural value chains and strengthen Malawi’s agri-food sector.

Impact and Achievements

Three years on, the EIB Technical Assistance Programme has delivered significant results, showcasing its objective of supporting and transforming SMEs in Malawi’s agri-food sector.

Empowering Women in Agriculture

Women play a significant role in agricultural production in Southern Africa, providing the largest labour force in the region’s agricultural sector. According to the SADC Food Nutrition Security Strategy, women contribute to more than 60% of total food production in SADC.

Agriculture contributes 70% of employment, and the majority of jobs in this sector are held by women. By reinvesting up to 90% of their earnings back into their households—on nutrition, food, healthcare, school—and into their businesses, women help to reduce poverty and contribute to food security.

A major programme goal is to empower female entrepreneurs in agriculture. Research shows that closing the gender gap in Malawi’s agriculture sector would boost crop production by 7.3%, adding USD 100 million annually to the economy and lifting 240,000 people out of poverty. In line with this, the EIB programme focuses on developing a pipeline of female beneficiaries, providing them with business planning, climate-smart agriculture training, logistics and agri-processing practices.

Over 40 female-led agribusinesses have received tailored support, including capacity-building training and access to finance, enabling them to scale operations and expand market access. Ongoing activities include capacity building for agricultural cooperatives, focusing on enhancing business management skills to improve smallholder access to credit. Training sessions are designed to bridge the gap between cooperatives and commercial banks, empowering rural stakeholders to participate in formal financial systems. There are ongoing efforts to also build capacities in agricultural logistics and agri-processing.

Success stories like that of Joyce Banda, winner of the Boosting Women in Ag pitch night are some of the positive examples of the impact being made the EIB programme in Malawi. Joyce established WiJays in 2017, an agribusiness producing detergents and soaps using raw materials grown by local women farmers in Malawi. Her organisation applies a circular economy approach throughout its production chain and partners with local distributers and supermarkets.

Enhancing Access to Finance

The EIB programme has enhanced the operational and technical capacity of banks to provide sustainable and inclusive agricultural financing through tailored support programmes for financial institutions. Training programmes were tailored to strengthen the banks’ capacities to implement gender-sensitive lending practices, comply with environmental and social standards, and develop loan products suitable for smallholders. Training sessions for Ecobank and First Capital Bank Malawi have enhanced their ability to evaluate and support agriculture-focused SMEs, with over 50 bank staff trained in areas like sustainable finance and environmental and social risk management.

The EIB has established credit lines and a risk-sharing framework with both Ecobank and First Capital Bank to facilitate loans to smallholders and SMEs. By mitigating lending risks through these frameworks, the programme encourages banks to extend financial services to the agri-food sector, which traditionally faces challenges due to perceived risks and low financial returns. The programme facilitated the disbursement of over €1.5 million in loans to SMEs in agriculture, significantly improving their operational capacities.

In addition, partner agribusinesses have adopted innovations such as organic fertilizers and drought-resistant seeds, benefitting over 200 smallholder farmers directly and improving climate resilience.

A Vision for the Future

The EIB Technical Assistance Programme is not only addressing immediate challenges in Malawi’s agricultural sector, but is also setting the stage for a more inclusive and resilient future. By empowering women, supporting SMEs, and building institutional capacity, the programme is fostering long-term growth and sustainability in agriculture.

With ongoing capacity building, gender-responsive initiatives, and improved market access systems, the programme is well-positioned to support the transformation of Malawi’s agricultural sector.

 

About Chido

Chido Myambo is the Marketing and Communications Officer at Imani Development. Chido is responsible for content creation and management of all corporate communications. She enjoys writing about climate smart solutions, women’s empowerment and sustainable development issues. She holds a Master’s in Development Finance with the University of Stellenbosch Business School.