SPEECH BY MALAWI’S DEPUTY MINISTER OF AGRICULTURE, THE HON. FRANK MWENIFUMBO, M.P. ON THE OCCASION OF THE FANRPAN STAKEHOLDER’S DIALOGUE, LILONGWE, MALAWI, 3 SEPTEMBER 2008, 1100 HOURS. [Delivered by the Principal Secretary, Dr. Andrew Daudi] PROTOCOL MAIN SPEECH: LADIES AND GENTLEMEN, MINE IS BUT A SIMPLE TWO-PRONGED TASK. AS THE DEPUTY MINISTER OF AGRICULTURE IN MALAWI, I AM PLEASED TO SHARE WITH YOU A CHRONOLOGY OF THE AGRICULTURAL INPUT SUBSIDY PROGRAMME IN THE CONTEXT OF FOOD SECURITY, A KEY DISCUSSION POINT FOR THIS STAKEHOLDERS’ DIALOGUE. MALAWI HAS WITNESSED A TRANSFORMATION IN THE DEVELOPMENT AND IMPLEMENTATION OF ITS AGRICULTURAL POLICIES SINCE INDEPENDENCE IN 1964. OUR EPIC JOURNEY FROM DAYS OF UNIVERSAL SUBSIDIES TO THE AGRICULTURE INPUT SUBSIDY PROGRAMME (AISP) INTRODUCED IN 2005 IN THE FACE OF WIDESPREAD CRITICISMS HAS BEEN A LESSON IN HOW TO ATTAIN INDEPENDENCE AS A FOOD PRODUCER. BETWEEN 1987 AND 2005 MALAWI EXPERIENCED A CRISIS WITH MORE THAN 5 MILLION PEOPLE NEEDING FOOD AID. SINCE 2005 MALAWI MOVED FROM BEING A FOOD DEFICIT NATION TO A NET FOOD EXPORTER IN SOUTHERN AFRICA, WITH A MAIZE HARVEST OF 2.6 MILLION METRIC TONNES – THE HIGHEST ON RECORD. TODAY, THIS PROGRAMME IS BEING HAILED AS A SUCCESS. SUBSIDIES ARE NOTHING NEW TO MALAWI’S AGRICULTURE SINCE THEY WERE FIRST INTRODUCED BETWEEN THE 1960 AND 1980 SOLELY FOR FERTILIZER AND HYBRID MAIZE SEED. WITH THE ECONOMIC WINDS OF CHANGE IN SOUTHERN AFRICA, MALAWI EMBRACED THE WORLD BANK Speech for the Deputy Minister of Agriculture 1
ECONOMIC STRUCTURAL ADJUSTMENT PROGRAMME. THIS HOWEVER, LED TO THE SCRAPPING OF SUBSIDIES WHICH WERE DEEMED OUT OF LINE WITH ECONOMIC REFORMS. BUT THE GOVERNMENT OF PRESIDENT OF HASTINGS KAMUZU BANDA, CONVINCED OF THE WISDOM OF HELPING POOR FARMERS, UNCONDITIONALLY REINSTATED THEM IN 1987. THE SUBSIDIES WERE AT 22% HIGHER THAN PRIOR TO THE ECONOMIC REFORMS AND THERE WAS A PROVISION FOR SAFETY NETS THROUGH THE AGRICULTURAL DEVELOPMENT AND MARKETING CORPORATION (ADMARC). THE FOLLOWING YEAR THE WORLD BANK SUSPENDED ITS PLANNED FORTH STRUCTURAL ADJUSTMENT LOAN TO MALAWI, EVIDENTLY AS A RESULT OF THE COUNTRY’S SUBSIDY POLICY ACTION. THE BANK WAS TO ADOPT A NEW APPROACH IN 1990 TO SUPPORT MALAWI’S AGRICULTURE THROUGH THE AGRICULTURAL SECTOR ADJUSTMENT PROGRAMME (ASAC). IN THE NEXT TWO YEARS, MALAWI EXPERIENCED A FOOD CRISIS WHICH COINCIDED WITH THE SUSPENSION OF ALL HUMANITARIAN AID AS A RESULT OF THE POLITICAL SITUATION AT THE TIME. A NEW POLITICAL ORDER IN MALAWI IN 1994 – ANOTHER FOOD CRISIS YEAR - SAW THE REMOVAL OF FERTILIZER AND HYBRID SEED SUBSIDIES YET AGAIN. THE LIBERALISATION OF AGRICULTURAL SECTOR STARTED IN 1994, CULMINATED IN THE INTRODUCTION OF STARTER PACK PROGRAMME WHICH INVOLED DISTRIBUTING INPUT PACKAGES COMPRISING A 2KG OF HYBRID MAIZE, A 10KG OF FERTILIZER AND A KG EITHER OF GROUNDNUTS OR SOYA BEAN. IN 2002 GOVERNMENT WAS FORCED TO SCALED DOWN THE STARTER PACK PROGRAMME INTO THE TARGETTED INPUT PROGRAMME (TIP) FOR THE MOST VULNERABLE. TIP WAS EXTENDED TO THE 2004/5 AGRICULTURE SEASON WHERE TWO MILLION HOUSEHOLDS RECEIVED THE INPUTS PACKAGE. BETWEEN 2005- 2007 THE GOVERNMENT INTRODUCED THE AGRICULTURAL INPUT SUBSIDY PROGRAMME (AISP). THIS WAS THE BASIS FOR THE SUCCESS IN Speech for the Deputy Minister of Agriculture 2
MALAWI’S MAIZE HARVEST. OUR GOVERNMENT IS COMMITTED TO REPLICATING THIS WINNING FORMULA FOR GENERATIONS TO COME. DR. WA MUTHARIKA’S VISIONARY LEADERSHIP HAS HELPED SUPPORT MALAWI’S TURN AROUND OF FORTUNES IN FOOD PRODUCTION. I AM PROUD TO HAVE BEEN PART OF THE TEAM THAT HAS PROMOTED A SOUND POLICY FRAMEWORK THAT HAS TRANSLATED INTO INCREASED MAIZE YIELDS AND SUSTAINED GRAIN STOCKS IN OUR NATIONAL RESERVES FOR THREE YEARS IN A ROW. • INSERT DETAILS ON GMO BILL AND DRAFT POLICY TO GUIDE THE AISP. MORE IMPORTANTLY, I AM PRIVILEGED TO INTRODUCE TO YOU AN EMMINENT POLICY MAKER AND THE MINISTER OF AGRICULTURE IN MALAWI. HIS COMMITMENT AND PASSION FOR FOOD SECURITY IN MALAWI IS AN OPEN SECRET. LADIES AND GENTLEMEN, IT IS MY SINGULAR HONOUR, LADIES AND GENTLEMEN TO PRESENT TO YOU ONE OF AFRICA’S EMMINENT SONS AND POLICY MAKER, THE PRESIDENT OF THE REPUBLIC OF MALAWI, HIS EXCELLENCY, DR. BINGU WA MUTHARIKA. Speech for the Deputy Minister of Agriculture 3
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