OPEC Fund enters USD20M agreement with Malawi to support agricultural productivity
Date
12/29/2024 2:23:47 AM
(MENAFN) The OPEC Fund for International Development has entered into a USD20 million loan agreement with the Republic of Malawi to support the Agricultural Productivity and Food Security Enhancement Programme in Southern Malawi. This initiative, as reported by the Emirates News Agency (WAM), aims to bolster agricultural development and address food security challenges in one of Malawi's key farming regions.
According to a statement issued from the Fund’s headquarters in Vienna, Austria, the loan will finance the second phase of the Shire Valley Transformation Programme. This phase focuses on improving agricultural productivity and crop resilience by developing essential irrigation infrastructure, managing a sustainable irrigation system, and enhancing the management of natural resources. These efforts are part of a broader strategy to support sustainable agricultural practices in Malawi.
The Shire Valley Transformation Programme is expected to significantly contribute to food security, poverty reduction, and improved livelihoods for approximately 130,000 residents in Southern Malawi, the country's most vital agricultural region. The project involves the construction of a 50-kilometre main irrigation canal and an additional 126 kilometres of secondary canals. The total cost of the programme is estimated at USD285 million, with funding contributions from other financial partners alongside the OPEC Fund.
Earlier this December, the OPEC Fund’s Board of Directors approved a substantial development financing package worth USD1 billion to be allocated by the end of 2024. This funding demonstrates the Fund’s commitment to addressing development needs across various regions, including initiatives like the Shire Valley programme, which aims to promote agricultural sustainability and resilience in Southern Malawi.
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