Agriculture Malawi

“Malawi Kwacha instability to chock food production incoming growing season”-CISANET

7 Min Read

LILONGWE-(MaraviPost)-The country’s leading civil society network working on food and agriculture issues, Civil Society Agricultural Network (CISANET) bemoans the recent depreciation of the Malawi Kwacha against the US Dollar saying will negatively affect the country’s food production due to its overreliance on imported fertilizers.

The move follows other recent socio-economic development changes that have the potency of further weakening the country’s already frail food systems.

The Network therefore feels that should decisive actions not be taken as a matter of urgency, the said developments –as things stand— are poised to condemn Malawi to probably the worst food crisis in decades.

In a press statement issued on Wednesday, September 6, 2023, signed by CisaNet Board Chairperson Herbert Chagona observes further that a case in point is the need for the government to expedite the process of purchasing farm inputs to ensure farmers –both smallholder and commercial— do get access to the same on time.

“We also hope the government, through The Treasury, has reserved enough forex to help cushion the changes,” worried Chagona.

Below is the full CisaNet Press Statement

A little background
The Reserve Bank of Malawi has just announced a 0.27 percent depreciation of the Kwacha as of Thursday, 31 August 2023.

This comes against another depreciation in June when the Kwacha depreciated by 2.4 percent against the US Dollar to trade at K1,058.82.

The development, to quote financial experts, is a result of the 25 percent devaluation of the Malawi Kwacha, as advised by the World Bank and International Monetary Fund (IMF) earlier in the year.

The announcement by the Reserve Bank of Malawi on the Malawi Kwacha’s continuous losing grip against other major trading currencies, came barely two days after the latest [June 2023-March 2024] Integrated Food Security Phase Classification (IPC) Acute Food Insecurity Analysis pitied 4.4 million people as facing high acute food insecurity in the country.

The figure this year is almost one-fifth, or 22 percent of the country’s total population. The vulnerable populations have increased by a whopping 1.4 million people when compared to that as quoted in the 2023 IPC Report. The same report also projects that the country’s food situation will worsen between October 2023 to March 2024.

A week before the release of the analyses, another report –Global Information on Early Warning Systems— by the Food and Agriculture Organisation (FAO) indicated that Malawi is among the countries that will experience extreme heat weather conditions from November 2024 to March 2024.

The current situation in context; impact
The above developments or revelations, already cast a dark shadow on Malawi’s food security. With the onset of the growing season, the weakened Kwacha and the current forex shortage continue to threaten the country’s other key three Fs on the country’s economic growth; namely food, fuel, and fertilizer.

The three, coupled with the country’s reported dwindling import cover in forex reserves, go hand-in-hand signaling the beginning of yet another cycle of hunger.

For instance, scarcity of forex and intermittent fuel supplies may lead to the government not affording to import fertilizers for its Affordable Inputs Programme (AIP) whose beneficiaries form almost half of those facing acute food shortages in the latest IPC analysis.

Also, commercial farmers and other households who are not part of AIP beneficiaries will not access the fertilizers in time; let alone access any at all.

For records, Malawi requires 400,000 metric tons of fertilizers per growing season for its largely degraded soils.
The same applies to accessing quality seeds as this remains the foundation of our agro-economy.

It is a must for every farming household; something we sadly tend not to prioritize as a country. On the other hand, the seemingly ever-rising poverty levels are not helping matters.

There is a need for systematic changes to be made now. Otherwise, in the wake of this current food crisis, Malawi will find itself in recurring self-inflicted hunger or food insecurity more often than not.

The Malawi Government can lead the way on this by setting moderate prices at which beneficiaries in this year’s AIP can acquire quality seed.

The prices must not be exorbitant, and not be driven by profitmaking. Simply put, many will not manage in this current economic climate.

In the end, most of them are bound to use recycled seeds; thereby reducing yield upon planting. Confronting the storm head-on; rays of hope As already discussed above, the findings are alarming and require immediate attention.

The current and impending crisis can be nipped in the bud if appropriate measures are taken urgently.

For ages, we are used to looking up to the government to ‘solve our challenges’ as a nation; often pointing a blaming finger at the same.

However, as we all know it, a food crisis is no respecter of persons or protocols. Of course, this does not intend to excuse the government from playing its rightful duty.

In Wetand ready to always provide checks and balances; and hold it accountable whenever it comes short of its mandate in the sector.

Therefore, scoring political points, or otherwise at this stage, should not be done at the expense of hunger or health. These are matters of life and death. Such times also call for decisive leadership at all levels of the social spectrum; the private sector inclusive.

Cognizant of the fact, that we are also part of the solution, we, at CisaNet, would therefore like to offer the following recommendations and advice on the situation:

Strengthen Market Systems

Efforts should be made to enhance market systems and facilitate the availability and affordability of food; in this case, maize. This can be achieved through supporting local markets like ADMARC, improving storage facilities, and promoting investments in agro-processing industries.

At CisaNet, as much as we are aware of the maize shortage that has hit the country, thereby pushing up the price on the commodity market, we still believe there may be enough maize within the borders of this land.

The Seed and Grain Traders Association acted in recent media reports that traders may be hoarding about 100 tones of maize. This may not be the only stash of the grain as several other individual farmers and traders may be hoarding
the grain for maximum profits to be made during the lean period.

The government must therefore work with such stakeholders to release the grain on the market now. Doing this now may not only push the prices down eventually but will also ensure the staple grain is distributed evenly across the
country; thereby stabilizing the food situation.

Additionally, the government should explore partnerships and collaborations with regional and international organizations to facilitate the importation of food during periods of shortages.

Emergency Preparedness and Response

The government should mobilize all necessary resources and establish a well-coordinated emergency response system to mitigate the impact of extreme heat on agriculture, livestock, and food production.

Early warning systems must be reinforced to ensure prompt action can be taken in the event of heat waves or other climate-related emergencies.

Diversification and Resilience in Agriculture:

There is a need for proactive measures to increase agricultural diversity and promote climate-resilient farming practices in both rural and urban areas.

This includes providing farmers with the necessary training, tools, and access to climate-smart technologies to adapt to changing weather patterns. Special attention should be given to promoting agroforestry, conservation agriculture, and drought-resistant crop varieties.

Social Safety Nets and Nutrition Support

Given the projected worsening of food insecurity, the government should strengthen social safety nets and nutrition support programs.

These programs should target vulnerable households, especially those living in extreme poverty and facing food
insecurity.

It is essential to ensure that families have access to nutritious food and are protected from the adverse effects of rising food prices.

Additionally, the government should explore partnerships and collaborations with regional and international organizations to facilitate the importation of food during periods of shortages.

Climate Change Adaptation and Mitigation:

Long-term solutions are crucial in addressing the recurring food insecurity challenges caused by climate change.

The government should prioritize climate change adaptation and mitigation measures in its policies and plans. This includes investing in climate-smart infrastructure, sustainable land management practices, and renewable energy sources
to reduce greenhouse gas emissions.

In conclusion, CisaNet urges the government and all stakeholders to take immediate action on the recommendations outlined above.

It is crucial to work together to protect vulnerable populations, secure food availability and access, and build resilience against climate-related challenges.

We call upon the nation at large to support these efforts and prioritize the well-being of our fellow Malawians.

Signed by HERBERT CHAGONA, CISANET BOARD CHAIRPERSON

Maravi Post Reporter

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