2. National Smallholder Farmers’ Association of Malawi Key Challenges Affecting Agriculture in the Region - Perspective from Farmer Group Dyborn Chibonga, NASFAM Financing agriculture in Southern Africa - Rural Development Briefing in Southern Africa No 3 A series of meetings on ACP-EU development Issues held at Crossroads Hotel. Lilongwe - Malawi from 25-26 th October 2010

3. National Smallholder Farmers’ Association of Malawi Overview of Presentation 1.Introduction to NASFAM 2.Member Programmes and Services 3.Background to African Agriculture 4.Existing Challenges for the Development of Small Scale Agriculture 5.Fostering an Enabling Environment for Small Scale Agriculture in Africa

4. National Smallholder Farmers’ Association of Malawi Introduction to NASFAM Member owned and Democratically governed Non-Partisan, Non-Religious Exists to develop and build a commercially viable network of smallholder directed business organizations Largest Farmer Organisation with 108,000 members in 43 Associations Covers 19 out of 29 Districts in Malawi Programs to improve farmer livelihoods, their communities and the nation

5. National Smallholder Farmers’ Association of Malawi 4 Crop Production and Marketing Farm Supply Shops Democratic governance & Capacity Building Policy and Advocacy Food Security HIV/Aids & Gender Integration Information and Communication Rural Infrastructure Development Adult Literacy/Numeracy Linkages to Other Service Providers Conservation Agriculture Monitoring and Evaluation Value Added Processing Programs & Services

6. National Smallholder Farmers’ Association of Malawi Background to African Agriculture Major source of livelihood for over 200million Sub- Saharan Africans living below poverty line Mainly the business of the poor - 70% of Africa’s populace in rural areas Almost all rural households depend directly or indirectly on agriculture Contributes on ave 30%-40% to most African economies Accounts for at least 40% of export value Significant in export earnings - over 80% for some countries like Malawi

7. National Smallholder Farmers’ Association of Malawi On the overall, major challenge is policies that are non-responsive to the needs & interest of small producers - Inefficiencies in policy implementation – Lack of M & E Systems Financing challenges Many countries not adhering to the 10% Maputo Declaration Agriculture budget high in recurrent expenditures Inadequate/lack of access to credit High prices for agricultural inputs and farm implements Unorganized farmers; low entrepreneurship Weak institutional linkages Weak extension services Existing Challenges for the Development of Small Scale Agriculture

8. National Smallholder Farmers’ Association of Malawi Existing Challenges cont’... Marketing Challenges High energy prices Low global prices for staple food crops (World Bank/IFPRI) Limited economies of scale Lack/Inadequate market information Poor/inadequate infrastructures- roads; storage facilities; production facilities; education & health facilities Poor telecommunication networks

9. National Smallholder Farmers’ Association of Malawi Existing Challenges cont’... Environmental Challenges Declining Soil Fertility Climate Change – Droughts, Floods etc Market Liberalisation Removal of agricultural subsidies Unstructured/disintegrated marketing structures

10. National Smallholder Farmers’ Association of Malawi Inadequate National Budget Allocation to Agriculture

11. National Smallholder Farmers’ Association of Malawi Fostering an Enabling Environment for Small Scale Agriculture in Africa 1.Congruency between agricultural growth, poverty reduction and food security 2.Improving the effectiveness of public investment in agriculture - transparency 3.Targeted funding to investment expenditures like irrigation development 4.Improved implementation and targeting of policies 5.Inclusion of smallholders in the policy development cycle 6.Streng thening the capacity of producer organizations

12. National Smallholder Farmers’ Association of Malawi Thank You Zikomo!