programme for rural irrigation development · 2015-11-24 · pm&e planning, monitoring and...

Document Date: 30-Oct 2015

Project No. 1100001670

East and Southern Africa Division

Programme Management Department

Republic of Malawi

Programme for Rural Irrigation Development

Design completion report

Main report and appendices

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Contents

Currency equivalents iii

Weights and measures iii

Abbreviations and acronyms iv

Map of the programme area vii

Executive Summary viii

Summary tables of the Economic and Financial Analysis xv

Logical Framework xvii

I. Strategic context and rationale 1

A. Country and rural development context 1

B. Rationale 4

II. Programme description 6

A. Programme area and target group 6

B. Development objective and impact indicators 11

C. Outcomes/Components 12

D. Lessons learned and adherence to IFAD policies 24

III. Programme implementation 25

A. Approach 25

B. Organizational framework 29

C. Planning, M&E, learning and knowledge management 33

D. Financial management, procurement and governance 35

E. Supervision 36

F. Risk identification and mitigation 37

IV. Programme costs, financing, benefits and sustainability 40

A. Programme costs 40

B. Programme financing 41

C. Summary benefits and economic analysis 41

D. Sustainability 43

List of Figures

Figure 1: Schematic of PRIDE’s targeting of scheme cluster areas 9

Figure 2: the community planning and investment agreements (CPIA) process 13

Figure 3: Phasing of irrigation scheme development 16

Figure 4: Environmental and social safeguards framework and procedures 28

Figure 5: Structure of the Programme Coordination Office 30

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List of Tables

Table 1: Irrigation schemes short-listed for PRIDE 7

Table 2: Irrigation scheme reserve list 8

Table 3: Total and estimated beneficiary population in PRIDE pre-selected scheme cluster areas

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Table 4: Target group typology 9

Table 5: Lessons learned 24

Table 6: Entities and activities during preparation 26

Table 7: Entities and activities during implementation 26

Table 8: Entities and activities during joint review 27

Table 9: PCO staff roles and duties (generic) 31

Table 10: Programme costs summary by year and by component (thousand US$) 40

Table 11: Programme financing plan (000 USD) 41

Table 12: Start-up financing facility 41

Table 13: Direct Programme Beneficiaries 42

Table 14: Sensitivity analysis 43

Appendices

Appendix 1: Country and rural context background 47

Appendix 2: Poverty, targeting and gender 51

Appendix 3: Country performance and lessons learned 57

Appendix 4: Detailed programme description 59

Appendix 5: Institutional aspects and implementation arrangements 75

Appendix 6: Planning, M&E and learning and knowledge management 85

Appendix 7: Financial management and disbursement arrangements 91

Appendix 8: Procurement 97

Appendix 9: Programme cost and financing 101

Appendix 10: Economic and Financial Analysis 129

Appendix 11: Draft programme implementation manual 155

Appendix 12: Compliance with IFAD policies 157

Appendix 13: Contents of the Programme Life File 161

Appendix 14: Climate change adaptation and climate-smart agriculture 163

Appendix 15: Mainstreaming nutrition 175

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Currency equivalents

Currency Unit = Malawi Kwacha (MK)

US$1.0 = MK 440

Weights and measures

1 kilogram = 1000 g

1 000 kg = 2.204 lb.

1 kilometre (km) = 0.62 mile

1 metre = 1.09 yards

1 square metre = 10.76 square feet

1 acre = 0.405 hectare

1 hectare = 2.47 acres

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Abbreviations and acronyms

AAF African Agricultural Fund ACIAR Australian Centre for International Agriculture Research ADC Area Development Committee ADD Agricultural Development Division ADMARC Agricultural Development and Marketing Corporation ADDs Agricultural Development Divisions AEDC Agricultural Extension Development Coordinator AEDO Agricultural Extension Development Officer AfDB African Development Bank AM Adaptive Management ASAP Adaptation for Smallholder Agricultural Programme ASARECA Association for Strengthening Agricultural Research in Eastern and Central Africa ASWAp Agriculture Sector Wide Approach AWPB Annual Work Plan and Budget BBTV Banana Bunchy Top Virus B/C Benefit cost ratio BMI Body Mass Index CA Conservation Agriculture CAADP Comprehensive Africa Agriculture Development Programme CARDESA Centre for Agricultural Research and Development for Southern Africa CBNRM Community-based Natural Resource Management CCA Credit Ceiling Authority CGIAR Consultative Group on International Agricultural Research COSOP Country Strategic Opportunity Programme CPIA Community Planning and Investment Agreement CPR Completion Programme Report CRIDF Climate-Resilient Infrastructure Development Fund CQC C-Quest Capital CSA Climate Smart Agriculture CSM Community Sensitisation and Mobilisation DADO District Agriculture Development Officer DAES Department of Agricultural Extension Services DC District Councils DCCMS Department of Climate Change and Metrological Services DFID Department for International Development DIO District Irrigation Officer DOI Department of Irrigation DPIST District Planning and Implementation Support Team DPD Director of Planning and Development EAD Environmental Affairs Department EIA Environmental Impact Assessment EIB European Investment Bank EIRR Economic Internal Rate of Return EMA Environment Management Act EMC Executive Management Committee EPA Extension Planning Area EPIC Economic and Policy Innovation for Climate Smart Agriculture ERP Economic Recovery Plan ERR Economic Rate of Return ESIA Environmental Social Impact Assessment ESMP Environmental Social Management Plans EU European Union FAO Food and Agriculture Organisation FBS Farmer Business School FFS Farmer Field School FISP Farm Input Subsidy Programme FMA Financial Management Assessment FMAQ Financial Management Assessment Questionnaire FOREX Foreign Exchange

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FUM Farmers Union Malawi FY Financial Year G8NA G8 New Alliance for Food Security and Nutrition GALS Gender Action Learning System GAPs Good Agricultural Practices GBI Green Belt Initiative GBV Gender-Based Violence GCM General Circulation Model GDP Gross Domestic Product GEF Global Environment Facility GII Gender Inequality Index GIS Geographical Information System GLTN Global Land Tools Network GOM Government of Malawi HACCP Hazard Analysis and Critical Control Points HH Households HIV/AIDs Human immunodeficiency Virus/Acquired Immune Deficiency Syndrome HVC High Value Crop ICB International Competitive Bidding ICT Information and Communications Technologies IFAD International Fund for Agricultural Development IFC International Finance Corporation IFMS Integrated Financial Management Information System IHFP Integrated Homestead Food Production IHS3 Third Integrated Household Survey IMPIF Irrigation Master Plan and Investment Framework IPC Internal Procurement Committee IPM Integrated Pest Management IRLADP Irrigation, Rural Livelihoods and Agricultural Development Project ISD Irrigation Service Division JICA Japan international Cooperation Agency KM Knowledge Management LCS Least Cost Selection LUANAR Lilongwe University of Agriculture and Natural Resources MASAF Malawi Social Action Fund MCCCI Malawi Confederation of Chambers of Commerce and Industry MDD-W Minimum Dietary Diversity for Women MDG Millennium Development Goal MDHS Malawi Demographic Health Survey M&E Monitoring and Evaluation MDTF Multi-Donor Trust Fund MGDS Malawi Growth and Development Strategy MICF Malawi Innovation Challenge Fund MITC Malawi Investment Trade Centre MK Malawian Kwacha MLHUD Ministry of Lands and Housing and Urban Development MM Malawi Mangoes MMF Malawi Mangoes Foundation MOAIWD Ministry of Agriculture Irrigation and Water Development MOFEPD Ministry of Finance Economic Planning and Development MLGRD Ministry of Local Government and Rural Development MONREM Ministry of Natural Resources, Energy and Mining MTR Mid-Term Review NAPA National Adaptation Programme of Action NASFAM National Smallholder Farmers Association of Malawi NCB National Competitive Bidding NCCIP National Climate Change Investment Plan NEAP National Environmental Action Plan NECS Nutrition Education and Communication Strategy NES National Export Strategy NFC Not From Concentrate NGO Non- Governmental Organisation NIDF National Irrigation Development Fund NIPDS National Irrigation Policy and Development Strategy NPV Net Present Value

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NRM Natural Resource Management NSO National Statistics Office OBM Opportunity Bank of Malawi ODPP Office of Directorate of Public Procurement O&M Operation and Maintenance PBAS Performance-based Allocation System PCN Project Concept Notes PCO Programme Coordination Office PCR Programme Completion Report PDG Programme Design Group PDO Programme Development Objective PFM Public Finance Management PIU Programme Implementation Unit PM&E Planning, Monitoring and Evaluation PPF Project Preparation Facility PPPP Public Private Producer Partnership PRA Participatory Rapid Appraisal PRIDE Programme for Rural Irrigation Development PS Principal Secretary PSC Programme Steering Committee QBS Quality-Based Selection QCBS Quality and Cost-Based Selection RAP Resettlement Action Plan RBA River Basin Authority RFQ Request For Quotation RLEEP Rural Livelihoods and Economic Enhancement Programme RIDP Rural Infrastructure Development Programme RIMS Results and Impact Management System SAPP Sustainable Agricultural Production Programme SBD Standard Bidding Documents SCPMP Smallholder Crop Production and Marketing Project SH Smallholder SHF Smallholder Farmer SHFS Smallholder Food Security SLTMP Smallholder Farmer Linkage To Market Platform SME Small and Medium Enterprises SOE Statement of Expenditure SSCF Small Scale Commercial Farmers STD Sexually Transmitted Diseases SUN Scaling Up Nutrition TA Technical Assistance TAF Technical Assistance Facility TAG Technical Advisory Group TLC Total Land Care TSLI Tenure Security Learning Initiative UNDP United Nations Development Programme USD United States Dollar VAT Value Added Tax VDC Village Development Committee WaSWAp Water Sector Wide Approach (not formed as yet) WB World Bank WEAI Women’s Empowerment in Agriculture Index WFP World Food Programme WUA Water User’s Association WUG Water User’s Group

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Map of the programme area

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Executive Summary1

Strategic context and rationale

1. Malawi has a predominantly agricultural economy, with 80% of the population depending on

subsistence farming. Approximately 76% of the population live below the income poverty line of

USD 1.25/day and 90% below the USD 2.0/day threshold. The proportion of poor and ultra-poor is

highest in rural areas of the southern and northern regions. More than 80% of the rural population is

smallholder farmer (SHF) under customary land tenure. They cultivate small and fragmented

landholdings over approximately 2.4 million hectares, with low yields, and are subsistence-oriented.

Average landholding size has fallen from 1.5 ha in 1968 to around 0.9 ha today.

2. Rural livelihoods in Malawi are in a state that is both precarious and stagnant. Low productivity

of agricultural fields combines with a high rural population density into endemic hunger and

malnutrition. Insecure access to land, poor management of natural resources and poor market

linkages combine to keep the Malawian smallholder where she or he is: At the brink of hunger. Food

distribution during deficit periods is a recurring phenomenon in rural Malawi. Livelihoods are

vulnerable to economic or other shocks. In early 2015 high rainfall – exceptional, but consistent with

predictions in the climate change scenarios – caused massive floods and crop failure; and

necessitated yet another food distribution campaign.

3. Rural Malawians are strapped for cash, and a smallholder’s goal to carry over a balance

income from one crop cycle to invest in the next competes with the need to feed her or his household.

The surplus from the sale of agricultural produce is marginal, as farmers are often forced to sell at a

low price due to their incapacity to store, their lack of knowledge on quality determinants (e.g. grading)

and the many small traders that stand between the farmer and the market demand. A fall in prices for

agricultural produce is as much a ‘shock’ to rural livelihoods, as are weather extremes.

4. Smallholder agriculture stagnates due to uncertain land access, low land productivity and poor

market access:

Access to ‘customary’ land is often contested between relatives, whereas sub-letting is largely

confined to seasonal leases; and biased to those who pay in advance;

Existing land is over-farmed due to high population pressure and low input use; while new lands

are located on increasingly marginal soils. Most land is rain-fed and produces at best two crops,

with a high risk of failure due to prolonged dry spells;

Input and product markets place smallholders at a disadvantage. Though unmet demands exist

at national level, lack of knowledge and a need for cash compels farmers to sell at low prices;

which in turn leaves little surplus, if any, for investment.

5. The Government of Malawi (GOM) is committed to address rural poverty through agricultural

growth. The Malawi Growth and Development Strategy (MGDS II) defines water development as a

key strategic area and emphasises infrastructure development. The 2012 Economic Recovery Plan

(ERP) further enhanced the emphasis on investment in irrigated agriculture. Recently, the Irrigation

Master Plan & Investment Portfolio (IMPIF) has been drafted, which provides a pipeline of feasible

investments in smallholder irrigation. Viable approaches for irrigation management and for land

consolidation for irrigation development have been developed and tested through the Irrigation, Rural

Livelihoods and Agricultural Development Project (IRLADP), which was IFAD co-funded. Projects,

programmes and activities aimed at agricultural growth coordinate their inputs and approaches

1 Composition of the 2

nd final design mission, March/April 2015: Mr Kees Blok, Mission Team Leader and Rural

Development Expert; Mr Jelle Tas, Rural Development Economist; Mr Guido Rutten, Irrigation Development Expert; Ms

Sophieke Kappers, Market Development Expert. Mr Thomas Rath, Country Programme Manager, IFAD-ESA briefed

and supervised the Mission from IFAD headquarters in Rome.

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through the Agriculture Sector Wide Approach (ASWAp), which is set-up by the Ministry of Agriculture,

Irrigation and Water Development (MOAIWD).

6. In 2013 the Government of Malawi (GOM) requested IFAD – during the mid-term review of

IFAD’s Country Strategic Opportunities Programme (COSOP 2010 - 2015) – to prioritise and assist in

the design of a water management programme aimed at smallholder agriculture. With the support of a

national Project Design Group, IFAD undertook a series of design missions during 2014 and 2015,

which resulted in the formulation of the Programme for Rural Irrigation Development (PRIDE).

7. Given IFAD’s track in irrigation development, climate-smart agriculture and value chain

development; and its comparative advantage in funding climate-resilient investment in soil and water

management and climate smart agriculture, IFAD is well placed to support the Programme for Rural

Irrigation Development. PRIDE builds on lessons learned in the Irrigation, Rural Livelihoods and

Agricultural Development Project (IRLADP) and incorporates lessons learned and experiences of the

Rural Livelihoods Economic Enhancement Programme (RLEEP – market linkages) and the

Sustainable Agricultural Production Programme (SAPP – good agricultural practices), which are both

part of the IFAD country portfolio.

Programme Description

8. PRIDE intends to contribute to the resilience of smallholder communities. Its goal is to reduce

vulnerability to food insecurity, to climate change effects and to the vagaries of the market. The

Programme Development Objectives is to enable smallholder farmers to sustainably enhance their

production levels to such a degree that they can provide for their household nutritional demands and

deliver produce to viable markets. PRIDE does so by providing smallholder farm households a

combination of (i) irrigation and soil- and water conservation infrastructure; (ii) promotion of good

agricultural practices; and (iii) linkage to improved value chains.

9. PRIDE’s will engage in approximately 15 scheme cluster areas, each comprising a to-be-

developed irrigation command and the rain-fed lands of concerned villages. By selecting viable

irrigation investment opportunities from Malawi’s irrigation investment portfolio (IMPIF, see above), the

Programme’s start-up time is significantly reduced. The pre-selected scheme cluster areas are

concentrated in two regional hubs, in respectively the north and the south of the country. In order to

address rain-fed and irrigated elements of the farming system PRIDE will engage with the villages

clustered around the irrigation schemes earmarked for the Programme. The selected areas would

include some 5,200 hectares of irrigated land, and 12,300 hectares of rain-fed land. An estimated

19,500 smallholder households live in the Programme area, of which a total of 17,500 households

representing 87,500 persons are assumed to directly benefit form PRIDE’s interventions. PRIDE will

focus on targeting poor households, women and female-headed households and youth.

10. PRIDE comprises two components: one aiming for irrigation development and catchment

management; and a second one developing agriculture and market linkages. Establishment of

infrastructure and farming systems that enhance resilience of scheme cluster areas to climate shocks

and -risks will be supported by the dedicated IFAD Adaptation for Smallholder Agriculture Programme

(ASAP), and builds on lessons gained through this programme in sub-Saharan Africa.

11. Component 1 – Irrigation Development & Catchment Management. This component aims

to develop resilient land and water management systems for smallholder households on both rain-fed

and irrigated lands.

12. The Programme starts from a pre-selection of viable irrigation schemes. A preparatory phase

will be used to update the information in the available studies; to conduct complementary work,

especially related to social and environmental due diligence; and to step-up the interaction between

the Programme and the beneficiary communities. At entry, the Programme will engage with existing

leadership (chiefs and village development committees) and their help will be sought to give shape to

direct interaction with the intended beneficiaries. A process of formation of a Water Users’ Association

will be initiated and supported. In parallel, agreements on scheme construction and hand-over; and on

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equitable access to land resources will be developed. The WUA will have long-term access to the

irrigated land, and will be charged with sub-letting land to their membership. Investments to combat or

prevent land degradation will be developed with and subsequently managed by conservation groups.

During this stage, the communities will also be asked to identify lead farmers and form the Farmer

Field Schools and Farmer Business Schools that will be supported through component 2.

13. PRIDE will cooperate with the Global Land Tools Network through their partnership with IFAD

under the regional ‘Tenure security learning initiative’ to help monitor the Land and Water Agreements

drawn up under PRIDE and to help monitor how land access develops over the years and how – if at

all – it affects agricultural practices, such as conservation agriculture and use of fertiliser.

14. The unit costs of irrigation development in Malawi are usually relatively high. In order to

stimulate market partners in scheme development to establish cost-effective user-managed medium-

sized irrigation systems; PRIDE will include a trial on one larger scheme with an integrated Design –

Build – Transfer contract. PRIDE’s procurement specialist and technical experts will develop, with

inputs from the concerned department and market partners – contract incentives which promote

efficient use of water resources and capable irrigation management.

15. The Programme will invest in measures to address urgent environmental degradation risks in

the scheme cluster areas. Investments could cover measures such as gully plugging, reforestation

and/or ground cover, fencing-off of vulnerable lands, delineation of buffer zones and construction of

bunds. The management of such infrastructure should generate local benefits (i.e. plantation of dual-

purpose trees, re-greening with grasses suited for cut-and-carry systems). Investments in

infrastructure to reduce environmental degradation helps smallholder agriculture adapt to climate

change impacts; and contributes – together with good agricultural practices promoted under

component 2 – to sustainable land management practices.

16. Component 2 – Agriculture and Market Linkages. This component aims to develop

environmentally and economically sustainable agricultural production systems managed by

smallholder households on both rain-fed and irrigated lands. Attention will be paid to both production

for nutrition and to linking production to market demands. Introduction of good agricultural practices

for rain-fed maize, legumes and irrigated vegetable production will help bolster local nutrition levels,

whereas production and marketing support for potatoes, legumes, rice and green maize would enable

farm households to generate significant higher incomes. PRIDE support will reflect regional variation

in the choice of crops and value chains.

17. The Programme will disseminate climate-smart Good Agricultural Practices (GAPs), including

a/o the use of weather and climate information services, conservation agriculture in rainfed land,

sustainable water and soil management, optimised irrigation scheduling and post-harvest

management. Emphasis will be given to off-the-shelf technology and resources will be earmarked for

adaptive research and on-farm demonstration. Extension of GAPs will take place through combining

the Farmer Field School and lead farmer approaches, currently being implemented under SAPP in

Malawi. Lead farmers will benefit from the provision of demonstration packages and from training to

build their knowledge of different GAPS and their skill in extension and communication. In return, the

lead farmers will be asked to form Farmer Field Schools (FFS) comprising representatives from

twenty households each. Through the FFSs, selected graduating farmers with technical capacities,

trusted by their peers and leadership characteristics will form the new lead farmers (facilitators) and

establish their new FFS farmers group. FFSs should have a clear curricula designed for specific

crops/GAPs that is jointly developed by extension, research and the FFS specialists. FAO – Malawi

has offered to assist PRIDE and also the ongoing SAPP in developing the FFS curricula and

implementation arrangements.

18. The Programme will make use of MOAIWD research and extension services and personnel, but

coverage will be enhanced by engaging additional and specialised service providers. Investments will

be made in information technology to enhance the effectiveness of services; and in facilities to make

best possible use of female agricultural and irrigation extension workers. `

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19. PRIDE will train Farmer Business Schools and will support the formation of producer groups.

The first will build the smallholders’ understanding of potential cash crops, their production costs and

the markets; whereas Producer Groups enable participating farmers to develop economies of scale

for bulking, processing, transport and marketing of their produce. The community focus will be

complemented by rendering support to existing and new commodity platforms. Here representatives

of input suppliers, buyers, wholesalers, processors, NGOs, micro-financiers, government agencies

and producers engage to revise the value chain for a specific agricultural commodity.

20. PRIDE will support the Malawi Innovation Challenge Fund managed by UNDP to open an

irrigation window with private sector engagement. The aim is to attract and promote a consortium of

wholesalers and equipment suppliers to engage in on-farm irrigation technology improvements. This

creates opportunities, such as larger production volumes; improved quality of produce and the

possibility to cultivate specific crops under optimised conditions in an irrigated block.

21. PRIDE will promote mainstreaming nutrition under its activities. Besides, a dedicated sub-

component will offer training to households for awareness on diversified and better nutrition. The aim

is to concretely improve nutritional status in farming families and foremost, reduce levels of child

wasting. In addition, the fuelwood stoves will be introduced widely to reduce workload of women to

free up time for more remunerative or social activities (social benefits), reduce smoke in the house

(health benefit), reduce GHG (environmental and climate benefits).

Programme Implementation

22. Programme Oversight. The Ministry of Finance, Economic Planning and Development will

formally represent the GOM on matters pertaining to the Programme. The Ministry of Agriculture,

Irrigation and Water Development will be the lead Ministry for the Programme. Day-to-day oversight

will be vested in the Department of Irrigation, while a Technical Advisory Team will be established

representing departments concerned with project implementation, including Land Resources,

Extension, Research (under MOAIWD), as well as the Department of Land (Ministry of Lands,

Housing and Urban Development), the Environmental Affairs Department (Ministry of Natural

Resources, Environment and Mining); the Debt and Aid Department of the Ministry of Finance,

Economic Planning and Development; and others as needed. Strategic oversight will be provided by a

Programme Steering Committee (PSC) comprising senior representatives of concerned Ministries,

under the chairmanship of the PS (Irrigation & Water Development) of MOAIWD. IFAD will undertake

half-yearly supervision missions; and a provision is made for implementation support missions.

23. Programme Management. In view of the limited implementation capacity of the Government,

and the positive experience in IRLADP with a dedicated unit for management, the Programme will be

implemented by a stand-alone Programme Coordination Office (PCO) established under the lead

Ministry and staffed by dedicated and highly qualified personnel who are recruited from government or

from the labour market. The PCO will carry out its daily work under a designated authority.

Recruitment of key PCO staff requires prior consent from IFAD. The PCO will include a senior

Programme Director, a Procurement specialist, a Financial Management specialist, a WUA specialist,

an Environmental Coordinator, a Gender and Targeting specialist, an Irrigation Engineer, an

Agronomist, a Value Chain Specialist and a Planning, Monitoring and Evaluation specialist. Given the

spread to the northern and southern regions, there will be two facilitation offices staffed by one

Coordinator and Assistant Coordinator each to support the PCO’s technical staff in Lilongwe.

24. Social and Environmental Safeguards. With respect to potential social and environmental

impacts, the programme is classified in Category A; i.e. the highest risk category. To ensure that the

required social and environmental safeguards are in place, PRIDE’s design has followed the most

recent IFAD Social, Environment, Climate Assessment Procedures (SECAP).

25. An Environmental and Social Management Framework and a Resettlement Action Framework

are developed to guide how the programme addresses negative impacts through inclusion of

mitigation measures. The procedure includes scoping of each sub-scheme, full Environmental and

Social Impact Assessments where needed, and the inclusion of Environmental and Social

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Management Plans (including where needed resettlement) on each sub-scheme. The framework is in

line with both IFAD and GoM standard procedures and includes an annual audit of all environmental

and social safeguard activities.

26. Planning, monitoring and evaluation. A robust management information system needs to be

set-up. Baseline, mid-term and completion surveys will collect data on Programme impact, whereas

Programme records will provide data on implementation progress. Additional data will be collected on

the risks potentially affecting the Programme. The multi-dimensional poverty assessment tool (MPAT)

will be incorporated to assess the Programmes impact, alongside IFAD Results and Impact

Management System (RIMS). Data will be disaggregated for gender, age and wealth class to better

understand the effectiveness of targeting. Several specific studies will be undertaken to collect

focussed information on a/o dynamics of land access, emerging irrigation practices, value chains and

markets.

27. Knowledge management is an important mechanism for the Programme, aimed to engender

continuous improvement in approaches and policies for the development of smallholder agriculture

and irrigated agriculture. PRIDE will develop factsheets and technical reports on lessons learned;

organise regular workshops with stakeholders and disseminate project information and lessons learnt

using websites, publications, focussed meetings and horizontal learning mechanisms. Institutional

learning shall be aimed at farmer groups; district staff and service providers and national agencies.

28. The PCO is responsible for mobilising adequate services to implement the Programme in the

scheme cluster areas. This is done by supporting service delivery by decentralised government

agencies, such as the irrigation and extension services and the land records office. In addition, the

PCO will assign non-government / private agencies to render specialised services (e.g. irrigation

design, construction, improved cooking stoves) or additional services in cases where government

agencies lack sufficient staff.

29. The decentralised agencies involved in the Programme will be assisted to establish an

implementation team to coordinate support to each scheme cluster area. The existing leadership in

the scheme cluster areas will be assisted in forming beneficiary organisations, ranging from Water

Users’ Organisations to Farmer Field Schools, to take part in the Programme.

30. Risks. The Programme design is based on several assumptions, which form risks to the

success of the Programme. The design includes mitigation measures to contain these risks and the

approach to planning, monitoring & evaluation pays due attention to reviewing these risks:

Implementation readiness – The well-known risk of slow start-up is countered by establishing

a stand-alone dedicated PCO, by building on the IMPIF-portfolio and by taking on board

experiences from SAPP and RLEEP. In addition, GOM has indicated that it would like to use

the start-up funds of IFAD to set up the PCO and recruit core staff upon signing the financing

agreement to prepare a PIM, AWPB, procurement documents and the accounting system.

GOM capacities – the inability of GOM to fulfil all vacancies in its extension services

jeopardises the implementation pace. PRIDE therefore mobilises both government services and

additional service providers. Moreover, a dedicated PCO with designated authority will

coordinate the programme activities, under the oversight of the Government. This arrangement

is critical as shown by the performance of SAPP as a negative example, while a positive

example refers to all well running programmes/ project such as IRLADP, RLEEP and RLSP.

Inclusiveness – If PRIDE does not succeed engaging women and youth, the effect (enhanced

production for nutrition and markets) and impact (resilience of rural communities) of the

Programme will be limited. PRIDE involves community leadership in targeting, monitors the

outcomes and takes remedial measures, if needed. Specific attention is given to facilitate the

work of female extension workers. Attention to ICT and mechanisation is expected to attract

young farmers.

Availability of rural financial services – Given present availability of rural finance options, the

risk of smallholder farmers not being able to take part in opportunities offered by PRIDE is

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modest. The risk is further mitigated by farmers not having to contribute cash to irrigation

development; and by the use of demonstration packages for the introduction of GAPs.

Catchment management – upstream processes may affect the long-term sustainability of

investments in the scheme cluster areas. Direct threats to the structural integrity of the irrigation

schemes can be addressed using the funds reserved under component 1; and GOM is setting

up the knowledge base, the policies and the structures for catchment management.

Unit costs for irrigation development – A tendency for high per unit investments is observed

in a number of completed schemes but the present unit costs, based on the irrigation portfolio –

appear reasonable. Strict supervision will help control the use of cost variation orders, and a

pilot for an integrated Build – Design – Transfer (BDT) contract would help provide better

incentives for a prudent per hectare cost for irrigation development.

Delayed registration of farmer organisations – The PRIDE design has brought the

registration of WUAs forward to the initial stages of the programme; thereby ensuring adequate

time for the registration, and for the lead Ministry to pursue this. The experience of IRLADP

provides good reference to speed-up WUA registration.

Extreme events – Extreme weather may seriously undermine the sustainability of land and

water management infrastructure. Designs will be made climate change compliant. Regular

maintenance by the WUAs (and reviewed annually by the Programme) reduces vulnerability of

irrigation systems. Finally, it is assumed that GOM – with help from its development partners –

is able to finance future major rehabilitations of irrigation infrastructure damaged by extreme

events.

Long-term land access – Land access on customary land is intrinsically insecure. At scheme

development, use is made of tested procedures for providing smallholder farmers equitable

access to land. Such land agreements are subject to free, prior and informed consent by

affected parties; and include proper compensation for any loss of land use, shelter or

livelihoods resulting from irrigation development. PRIDE uses procedures to develop land

agreements, which have proven successful in IRLADP. The programme furthermore includes

tracer studies on land access, which will be undertaken with support from the Global Land

Tools Network. In addition, GOM is processing a new Land Bill, which provides conditions for

enhanced security of land access on lands that presently have a customary title.

Local livelihood improvements – indicators for poverty reduction will rapidly improve if

Programme benefits are used locally, but they will stagnate if households opt to invest in long-

term development opportunities associated with higher education and searching employment

elsewhere. The Programme, through its nutrition sub-component, promotes enhancing the

nutritional intake of the household members.

Programme cost, financing, benefits and sustainability

31. Total Programme costs including price and physical contingencies, duties and taxes are

estimated at USD 84 million over the seven years of Programme implementation. Of this, about USD

23 million (27%) represents the foreign exchange component, and USD 13 million (15.9%) are duties

and taxes. Total base costs amount to USD 77.1 million, while physical and price contingencies are

estimated at USD 6.8 million (8.8% of the base costs). Investment costs account for 86% of the base

costs; and recurrent costs for the remaining 14%.

32. Programme investments are organized into three cost components: (i) Irrigation development

and catchment management; (ii) Agriculture and market linkages; and (iii) Programme management.

Programme management and coordination costs are about USD 8.1 million or 9.7% of the total. A

summary breakdown of the Programme costs by component and sub-component is shown in the

table.

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Project Components by Year -- Totals Including Contingencies

(USD '000)

Totals Including Contingencies

2016 2017 2018 2019 2020 2021 2022 Total

A. Irrigation development and catchment management

1. Land and w ater governance 767 316 778 317 689 339 105 3,311

2. Irrigation system development 2,241 9,929 12,463 10,766 6,268 5,471 1,021 48,159

3. Soil and w ater conservation 184 395 345 411 359 427 128 2,248

Subtotal 3,192 10,639 13,586 11,493 7,316 6,237 1,254 53,718

B. Agriculture for irrigation and rain-fed systems

1. Improved agricultural practices 927 1,327 1,292 1,242 1,179 1,089 341 7,397

2. Market linkages 1,431 1,630 1,760 1,083 534 451 268 7,159

3. Community Innovations 514 2,870 2,862 113 1 1 - 6,362

Subtotal 2,872 5,827 5,914 2,438 1,715 1,541 609 20,918

C. Programme management and coordination

1. Know ledge Management, Planning and M&E 193 120 120 223 125 129 278 1,187

2. Programme coordination 1,464 1,087 1,109 1,122 1,551 1,132 663 8,127

Subtotal 1,657 1,206 1,228 1,345 1,676 1,261 941 9,314

Total PROJECT COSTS 7,721 17,673 20,729 15,277 10,706 9,040 2,805 83,950

33. PRIDE is to be financed by GOM, IFAD (loan and grant), ASAP grant through IFAD,

UNDP/DFID, the private sector and beneficiaries. The IFAD loan finances 31.5% (USD 26.5 million) of

the programme costs; of which half (USD 26.5 million) will be a loan at IFAD highly concessional

terms and half (USD 26.5 million) a grant under the Debt Sustainability Framework (DSF). ASAP will

finance 8.4% (USD 7 million). The loan is on highly concessionary terms including a 40-years maturity

period, a 10-years grace period; and a 0.75% annual service charge. The government will finance the

taxes and duties (USD 13.2 million, 15.7%). Beneficiaries will contribute USD 7.2 million (in kind)

representing about 8.7% of the Programme costs.

34. To help GoM ensure a swift programme mobilisation, a start-up financing facility of a total of

USD 520,000 for specified cost categories, is available for the period between entry into force

(signing) and the moment when the conditions for first withdrawal are satisfied.

35. The economic rationale for PRIDE is based on improved agricultural productivity and reduction

of post-harvest losses in both rain-fed and combined rain-fed & irrigated farming systems as a result

of the application of Good Agricultural Practices; increased cropping intensities and high value crop

cultivation on irrigated lands.

36. The economic analysis of the Programme indicates that PRIDE is robust in economic terms.

The overall Economic Internal Rate of Return (EIRR) of the Programme is estimated at 20% (base

case) which is above the opportunity cost of capital in Malawi. The EIRR is estimated based on the

assumption that 80% of target farmers will adopt the GAP technology packages promoted by the

Programme and 90% would be engaged in farming of irrigated land.

37. The Net Present Value (NPV) is USD 29 million over the 20-year period of analysis, with the

benefit stream based on the quantifiable benefits that relate directly to the activities undertaken

following implementation of the components. These figures are considered reasonable given that

benefits of the Irrigation window in the Malawi Innovation Challenge Fund and of the improved

cooking stoves have not been factored in. More detail of the Programme economic and financial

analysis is included in appendix 10.

38. Sustainability. Several mechanisms incorporated into the Programme design aim to help

continue the benefit stream beyond the programme’s 7-year implementation period, and beyond the

economic lifetime of the infrastructure introduced by the Programme. The mechanisms for long-term

sustainability include consultative planning, land consolidation, farmer-managed irrigation, community

natural resource management, farmer-led innovation, linkage to market partners and sector-wide

knowledge management. PRIDE aims to transform smallholder farming within an intervention area

limited to about 15 medium-sized irrigation schemes, including surrounding rain-fed lands. Irrigation

infrastructure, climate-smart agricultural practices and market linkages are the ‘game-changers’ that

help institute this transformation. Sharing of experiences within the smallholder agriculture sector will

contribute to scaling-up the approach to other areas with irrigation potential.

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xv

Summary tables of the Economic and Financial Analysis

Table A

Beans Onions Irish Potato Tomato Cabbage Farm 1 Farm 2

PY125,722- 44,113- 61,561- - - - - 36,770- 55,961-

PY24,487- 15,599- 37,904- 181,105- 707,336- 174,889- 229,685- 66,106- 60,679

PY3 14,678 30,024 23,710- 403,124 152,372- 20,242- 7,503 19,328- 198,257

PY430,249 80,210 37,127 987,353 929,807 132,903 157,427 53,874 391,428

PY540,900 100,740 55,415 1,685,888 1,623,512 403,159 361,117 101,709 549,918

PY640,900 100,740 55,415 2,088,075 2,622,447 538,287 503,803 150,772 698,696

PY7 40,900 100,740 55,415 2,088,075 2,622,447 538,287 503,803 150,772 698,696

PY840,900 100,740 55,415 2,088,075 2,622,447 538,287 503,803 150,772 698,696

PY940,900 100,740 55,415 2,088,075 2,622,447 538,287 503,803 150,772 698,696

PY1040,900 100,740 55,415 2,088,075 2,622,447 538,287 503,803 150,772 698,696

109,995 283,743 66,328 5,997,705 6,568,232 1,260,435 1,157,695 301,060 2,129,467

250 645 151 13,631 14,928 2,865 2,631 684 4,840

60% 71% 24% 323% 105% 88% 77% 49% 227%

NPV (Mk)

NPV (US$)

FIRR (@12%)

F

I

N

A

N

C

I

A

L

A

N

A

L

Y

S

I

S

Crop Models Farm Models

Crop Models Incremental Benefits (Mk)Farm Models

Incremental Benefits

Table C

FINANCIA

L

MAIN ASSUMPTIONS & SHADOW PRICES1

Output Av. Incremental Price (Mk/kg) Input prices Price (Mk)

Seeds (per Kg) 681

Farmyard manure (per ton) 2000

Basal fertilizer (per kg) 320

Top dress fertilizer (per Kg) 300

Herbicides (per Kg) 7000

Insecticides (per litre) 2200

Fungicide (per Kg) 3500

Gypsum (kg) 400

ECONOM

IC

Official Exchange rate (OER) Discount rate (opportunity cost of capital)

Irish Potato 209% 240

Tomato 125% 760FINANCIA

L

Cabbage NO WOP 200

Beans 30% 350

Onions 153% 600

Output Av. Incremental Price (Mk/kg) Input prices

Maize 88% 80

Groundnut 125% 350

440 12%

396 12%

0.9 0.9

0.65 1.06ECONOM

IC


Shadow Exchange rate (SER) Social Discount rate

Standard Conversion Factor Output conversion factor (average)

Shadow Wage Rate Factor (SWRF) Input Conversion factor (average)

Table D

Items Target HH Y 1 Y 2 Y 3 Y 4 Y 5 Y6 Y7 Total

FARM 1 rain-fed only 2000

Adoption rate 80% 5% 20% 20% 20% 10% 5% 5%

No. of HH 1600 80 320 320 320 160 80 80 1,360

Cummulative no. of HH 320 640 960 1280 1440 1520 1600 7760

FARM 2 rain- fed & irrigation 17500

Lot 1 in ha 439 1033 725 2197

Lot 2 in ha 397 1192 397 1986

Lot 3 in ha 191 572 191 954

Total 439 1033 1122 1192 588 572 191 5137

adoption rate 90% 5,137

no. of HH/a 15750 1,362 3,206 3,482 3,699 1,825 1,775 593 15,942

cummulative no. of HH 1,362 4,568 8,050 11,750 13,574 15,350 15,942

Total no. of HH 1,442 3,526 3,802 4,019 1,985 1,855 673 17,302

Total cummulative no. of HH 17350 1,442 4,968 8,770 12,790 14,774 16,630 17,302

Beneficiaries, Adoption Rate, Phasing in

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xvi

Table E

NET

INCREMENT

AL BENEFITS

PY1 -195 4,635 1,186 5,821 -6,016

PY2 -445 11,953 1,320 13,273 -13,717PY3 -54 13,926 1,309 15,235 -15,289PY4 1,443 9,325 1,285 10,610 -9,166

PY5 4,540 6,007 1,246 7,253 -2,713PY6 8,563 4,812 1,192 6,004 2,559

PY7 12,964 1,249 551 1,800 11,164

PY8 16,626 0 551 551 16,075

PY9 19,275 0 551 551 18,724

PY10 20,674 0 551 551 20,123

PY11 21,421 0 551 551 20,870

PY12 21,609 0 551 551 21,058

PY13 21,609 0 551 551 21,058

PY14 21,609 0 551 551 21,058

PY15 21,609 0 551 551 21,058

PY16 21,609 0 551 551 21,058

PY17 21,609 0 551 551 21,058

PY18 21,609 0 551 551 21,058

PY19 21,609 0 551 551 21,058

PY20 21,609 0 551 551 21,058

29,770

NPV@12 % (Mk '000 ) 13,098,790

20.0%

NPV@12% (USD '000)

EIRR

E

C

O

N

O

M

I

C

A

N

A

L

Y

S

I

S

NET INCREMENTAL COSTS

Cash

Flow

(USD

'000)

Total

Incremental

Benefits

(USD'000)

Economic

Investment

Costs

(USD'000)

Economic

Recurrent

Costs

(USD'000)

Total

Increment

al Costs

Table F

?% IRR (%)NPV (USD

M)

20% 29,755

-10% 18%22,484

-20% 16%15,214

-50% 10% 6,599-

10% 22%37,026

Project benefits 20% 23%44,297

Project costs 10% 18%25,460

20% 17% 21,165

50% 14%8,279

17%19,965

15%11,224

1 year lag in ben.

SENSITIVITY ANALYSIS (SA)

Link with the risk matrix

Base scenario

Project benefits

Low implementation readiness and GoM capacity hamper start-up of

Programme; allocation of land resources, registration of WUAs and

extreme events delays implementation progress; achievement of

inclusiveness and local l ivelihood improvements takes longer than

foreseen. 2 years lag in ben.

Availability of rural financial services more costly than foreseen;

Extreme events affecting market prices.

Project benefits

Project benefits

Project benefits

Inadequate funds reserved for catchment management; unit cost for

irrigation development higher than foreseen; cost for climate-proof

(extremen events) infrastructure higher than foreseen.Project costs

Project costs

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xvii

Logical Framework

Indicators marked with by * will be disaggregated according to target group category, gender and age cohort (18 – 35, over 35)

TBD: To be determined by programme studies (i.e. baseline, tracer studies, mid-term and completion surveys)

Results Hierarchy Key Performance Indicators

Means of Verification

Assumptions

Goal Name Baseline End Target Source Frequency Responsibility

Rural communities are

resilient to food

insecurity-, climate

change2 and economic

risks

Reduction in child malnutrition, measured by the incidence of wasting (RIMS level III)

Improvement in household assets ownership index (RIMS Level III)*

Smallholder households supported in coping with the effects of climate change (RIMS 1.8.5) measured by the number of households applying climate-smart agricultural practices*

Tbd 20% reduction

15,000 households with a 20% improvement

17,000 smallholder households

Baseline surveys and RIMS surveys, MPAT surveys

Same

Programme records

Project start, mid-term and completion

same

Semi -annually

PCO/DOI

Project Development Objective:

Smallholder farmer

households enhance

income and nutrition

through sustainable

agricultural production

Smallholder farmer households receiving project services (RIMS 1.8.1), differentiated by gender of the household and wealth class

Smallholder farmers with increased income of 3 fold (rainfed only) and 8 fold (irrigation/rainfed)*

Smallholder households reporting decreased incidence of hunger periods, measured by number of meals per day and by increased dietary diversity *

Nil

tbd

Nil

17,000 smallholder farmer households

11,000 smallholder farmers

17,000 smallholder households

Programme progress reports

Baseline surveys and RIMS surveys, MPAT surveys

same

Semi-annual

Every 2 years

same

PCO/DOI No major impact of climate shocks ; Policies remain conducive to agriculture; Market prices remain favourable or at least stable;

Outcome 1:

Smallholder

households

sustainably operate

climate-resilient land

Effectiveness: farmers with secured access to land and water (RIMS 2.1.2)

Incremental hectares of crops in irrigated land throughout seasons.

Nil

Nil

15,700 farmers

5,200 ha

Tracer studies on land and water access

land use survey

year 3, 5, 7

PCO/DOI Allocation of land and water to smallholder farmers is secured and reliable over longer periods

2 In PRIDE, resilience to effects of climate change will be measured by households having access to irrigated land, cultivate at least 3 different crops (diversification) and apply good

agriculture practise including soil improvement techniques.

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xviii

and water

management systems

on both rain-fed and

irrigated lands (refers

to ASAP outcome #1)

Outputs:

1.1 Communities

effectively

manage their land

and water

management

systems

WUA managing infrastructure formed or strengthened (RIMS 1.1.2)

nil

15 WUA

WUA records / tracer study land tenure

annually

PCO/DOI

Registration of 15 Water Users’ Associations is facilitated by the concerned agency Government is able to assist WUAs affected by extreme events in recovering their system’s functionality

1.2 Medium-sized

irrigation systems

(50-1000 ha)

established

Land under irrigation from rehabilitated or newly constructed schemes (RIMS 1.1.5)

Land consolidation and tenure arrangements completed

Nil

Nil

5,200 ha

5,200 ha

Annual land use survey

WUA records / tracer study land tenure

Upon hand over of complete scheme

PCO/DOI No major delays / implementation bottlenecks Unit costs are kept within USD 7,800 per hectare

1.3 Erosion-affected

and vulnerable

rain-fed land

recovered

Extent of land with rehabilitated or restored ecosystem services (RIMS 1.1.17)

Nil 1,000 ha Annual land use survey

Upon hand over of complete scheme

PCO/DOI GOM policies re catchment natural resources benefit the scheme cluster areas

Outcome 2:

Environmentally and

economically

sustainable

agricultural production

systems adopted by

smallholder

households on both

rain-fed and irrigated

lands

Farmers report yield increase (> 20% above baseline) from improved rainfed agricultural production (RIMS 2.2.2)*

Farmers report adoption of recommended climate smart Good Agricultural Practices

Baseline

Baseline

17,000 farmers

17,000 farmers

HH sample surveys

Every 2 years

PCO/DOI

Access to financial services and revenues from / services of markets enable intensification of smallholder agriculture

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xix

Outputs:

2.1 Smallholder

farmers trained on

good agricultural

practices on rain-

fed and irrigated

land

People trained in crop production practices and technologies (RIMS 1.2.2) specified for lead farmers and FSS attendants*

Nil

780 lead farmers and 15,000 FFS members

Programme reports

Semi-annually

PCO/MOAIWD

GOM capacity can be complemented by mobilisation of private sector service providers

2.2 Smallholder

farmers linked to

improved markets

Smallholder farmers trained in production, post –production, processing and marketing (RIMS 1.4.1) *

Nil 17,500 farmers Programme reports

MICF reports

Semi-annually PCO/DOI PRIDE successfully engages all target group segments in programme activities

2.3 Smallholder

households

improve nutritional

intake

Women trained in preparation of

nutritious meals in 2 seasons*

Nil 15,000 women Programme reports

Semi-annually PCIO/DOI PRIDE successfully includes women and youth in leading roles in WUAs , FFS etc

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1

I. Strategic context and rationale

A. Country and rural development context

1. Malawi is a densely populated landlocked country of about 15 million people in an area of

118,484 km2, of which 24,000 km

2 is fresh water. Population growth is almost 3% per annum and the

country has one of the lowest per capita GDPs in the world. With a human development index of

0.414, Malawi is ranked 174th out of 187 countries (2014), while for its gender development index it

ranked 116th out of 208 countries (2013). The third Integrated Household Survey (IHS3, 2011)

estimates that 51% of the population lives below poverty line with 25% being ultra-poor.

2. The socio-economic challenges remain formidable. The ability to maintain a level of economic

growth to ensure poverty reduction remains limited by: (i) the narrow economic base; (ii) the small and

low value domestic market; (iii) poor infrastructure and high transport costs; (iv) erratic power supply

and heavy reliance on fuel imports; (v) poorly developed business sector; (vi) Government

intervention in key market sectors; and (vii) weak institutional management capacity in the public and

private sectors. Education levels and productivity are low. Because of the predominance of rain-fed

agriculture the country is extremely vulnerable to climate shocks, particularly drought. Present climate

change scenarios predict more erratic rain- and drought patterns. Inflation and high interest rates

remain a disincentive to investors. Chronic food insecurity and malnutrition, combined with HIV/AIDS

prevalence of 11.9% add to the challenges.

3. Malawi has a predominantly agricultural economy, with 80% of the population depending on

subsistence farming and exports reliant on the key cash crops – tobacco, tea, sugar and cotton. Real

GDP growth rates averaged less than 4% during the 1990s, and ranged from 2% to nearly 7% since

2002. The current account deficit of nearly 13% of GDP is financed by donor grants and development

credits. Malawi has limited access to alternative modes of external financing and has attracted little

foreign direct investment.

4. Rural Poverty. Approximately 76% of the population live below the income poverty line of USD

1.25/day and 90% below the USD 2.0/day threshold. The proportion of poor and ultra-poor is highest

in rural areas of the southern and northern regions. Over 85% of the poor live in rural areas (NSO

2008). Rural areas have a higher proportion of both stunted and underweight children, 36% and 18%

respectively compared to urban areas with 31% and 12% respectively. The latest MDG Progress

Report on Malawi indicates mixed results in the country’s progress. Substantial reduction of hunger

and extreme poverty is expected, but achievement of universal primary education goal is unlikely.

5. The rural poor further incur high levels of malnutrition due to: (i) inadequate dietary intake;

(ii) low access to food in terms of quantity, quality and diversity due to inadequate food production or

low income; (iii) poor child feeding and care practices; (iv) low education and lack of knowledge in

food processing and utilisation; (v) poor access to quality health care services and sanitary amenities;

(vi) diseases; (vii) cultural beliefs which deny women and children consumption of high nutritive value

foods; and (viii) poor coordination by GOM of nutritional programmes within and between institutions.

About 38% of households (HH) earn their livelihood only from farming or fishing. Around 25% combine

work on their farm with other jobs, largely in agriculture. The recurrence of both economic and climatic

shocks frustrates attempts to escape rural poverty.

6. Rural poverty is characterised by:

Gender of Household Head. Women head about 25% of the households in Malawi and 63% are

poor, whereas only 49% of male-headed households are poor;

Household Composition. Average household size is 5.4 for the poor and 3.8 for the non-poor;

Education. Poverty is severe among people who live in households whose heads have no

formal education; and those with more than a junior certificate are less likely to live in poverty;

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2

Land Holding Size. Average per HH is 0.7ha. Some 75% of the farmers cultivate less than

1.0ha, with 33% of male heads cultivating less than 0.5ha as compared to 50% of female HH

heads;

Access to Markets and Services. The poor live in remote areas with few roads and little means

of transport, which limits their economic opportunities and access to financial services;

Illness and Disability. Families affected by chronic debilitating diseases such as HIV/AIDS and

tuberculosis, both of which are accentuated by poor nutrition are poor or ultra- poor.

7. Women and Youth. In Malawi, women are more disadvantaged than men in many aspects of

life. The Gender Inequality index is 0.591 (2013); an indication that disparities exist between males

and females. Although women provide 70% of the labour force and produce 80% of food for home

consumption, they have little control over the produce and benefit less from the income earned.

Women also have limited access to agricultural markets due to lack of affordable transport,

appropriate marketing technologies and price negotiation skills. Men dominate in the commercial sub-

sector which gives them an economic advantage over women. Considering the role women play in

food production, there is scope to match their role with appropriate resources, decision-making space

and skills.

8. Youth faces considerable challenges mainly linked to lack of basic opportunities. There are few

employment opportunities outside agriculture in the rural areas while the ongoing fragmentation of

landholdings provides a bleak future in farming. Farming is associated with low cash income

generation, hard labour and low status. Many young people aspire regular employment, partaking in

urban life and working with mechanical or digital tools. The National Youth Policy, 2013 aims “to create

an enabling environment for all young people to develop to their full potential in order to contribute

significantly to personal and sustainable national development”.

9. Constraints and opportunities for agricultural and rural development. The agricultural

sector is important to economic growth and human welfare because it employs about 80% of the total

workforce (NSO, 2012) and accounts for 29% of GDP (GOM, 2013). The sector contributes

significantly to national and household food security (GOM, 2011). The sector is dualistic, comprising

smallholder and estate subsectors. More than 80% of the rural population are smallholder farmers

(SHF) with customary land tenure. They cultivate small and fragmented landholdings over

approximately 2.4 million hectares, with low yields, and are subsistence-oriented. Average landholding

size has fallen from 1.5 ha in 1968 to around 0.7 ha today.

10. The two main cropping systems are: maize mixed (covering 75% of cropland) and cereal-root

crop mixed in the south (15% of cropland). The original niche of smallholders was in the provision of

maize to feed estate and urban workers. In good rainfall years with favourable prices and access to

inputs, Malawi is able to produce around 3.0 million tonnes of maize, which is above the self-

sufficiency level. In poor seasons, many households are food insecure and malnutrition particularly in

the food deficit southern region.

11. Fishing employs around 250,000 people and accounts for 60-70% of the animal protein intake.

Livestock ownership is low with an average of 0.53 tropical livestock units per HH. Performance of the

livestock sector is affected by low productivity of the cropping sector. As cropping extends into grazing

areas, the number of ruminant livestock has decreased. Per capita meat consumption and animal

protein intake is low, contributing to poor nutrition among children. The fisheries and livestock sub-

sectors are opportunities for diversification of livelihoods and can enhance resilience to climate

change.

12. Despite availability of better technologies, the productivity of most crops has only shown

modest improvement because of: a) declining soil fertility and limited use of fertilisers prior to

introduction of the Farm Input Subsidy Programme (FISP); b) poor access to financial services and

markets; c) unfavourable weather; and d) small landholdings. Post-harvest losses are estimated at

30% of production for maize and higher for perishable commodities.

Republic of Malawi



3

13. Over the last 20 years, droughts and prolonged dry spells have become more frequent resulting

in poor crop yields and, in some cases, total failure. Climate models predict a wetter regime for the

northern regions while the south will be drier with shorter and more intense rainfall periods. Intense

rains, as experienced in January 2015, lead to floods and accentuate land degradation. Based on

outcomes of studies in various catchments, soil loss is estimated to average a staggering 20

tonnes/ha/annum (see appendix 143). This contributes to a reduction in crop yields of 4% or more per

year. Appendix 2 on climate change adaptation and natural resource management provides further

analysis.

14. Less than 4% of cultivated land is under irrigation, and only half (47,531ha) of that is managed

by smallholder farmers. Major problems revolve around distribution of water and access to irrigated

land, canal repairs, mobilisation of labour for maintenance, and rules for resolving disputes. These

issues need to be addressed to expand the irrigation sub-sector.

15. The land access that smallholders enjoy is a granted right to a lineage, transferred through

either patrilineal or matrilineal systems depending on location. The right allows its holder to use

customary land. In addition smallholders may access land through sub-lease of the land of other right

holders. Land access ranges between these two, but generally a smallholder’s long-term access is

uncertain. The right to customary land is rarely taken back, but it has to be shared between relatives –

and is at times a source of conflict; while the practice of land leases is largely confined to seasonal

leases; and gives preference to those who can afford to pay in advance. Women face disadvantages

both in conflicts over land rights as well as in access to lease options. Land access under the

customary title is nowadays less certain; and it does not create favourable conditions for investment in

soil fertility, irrigation infrastructure and land levelling.

16. The private sector remains under-developed in rural areas and smallholder farmers are poorly

integrated in the marketing system. This is compounded by limited market infrastructure, poor quality

feeder roads, inadequate market information, a lack of skills and facilities in post-harvest storage and

agro-processing. Adverse climate accentuates the already poor transport infrastructure; heavy rains

and floods wash damage dirt and paved roads and bridges, rendering access to services in including

health, education and marketing services difficult for the rural population and services providers

(sellers/buyers). There is an urgent need to improve climate resilience of village and district roads.

17. Rural livelihoods in Malawi are in a state that is both precarious and stagnant. Low productivity

of agricultural fields combines with a high rural population density into endemic hunger and

malnutrition. Insecure access to land, poor management of natural resources and poor market

linkages combine to keep the Malawian smallholder where she or he is: At the brink of hunger, food

distribution during deficit periods is a recurring phenomenon in rural Malawi. To alleviate the risks of

failure of the staple crop, the government feels compelled to distribute subsidised packages of maize

seed and fertiliser, despite the big strain this puts on government resources.

18. Legislative and policy framework. Malawi currently faces a number of land governance

challenges (see para 15, above). The customary land tenure system is under pressure as some with

an allotment now live in cities; while the growing population compels others to compete for scarce

land resources. Access to land has become more insecure and this forms an obstacle to productive

land use and to investment in agriculture. Insecurity over rights, absence of low-cost mechanisms for

registration, and a non-functioning land administration system block private sector development and

the development of financial services. Although 25% of households are female headed, less than 15%

of land is registered in the name of women, either individually or jointly. Land use planning is mostly

absent. Many land tenure issues related to irrigation schemes require further attention. A Land Bill has

been prepared which addresses some of these issues but has not yet been legislated.

19. Irrigation development has been guided by the 2001 National Irrigation Policy (NIP). The NIP

was revised in 2014 and is based on the irrigation sector overall goal of contributing to sustainable

economic growth and development by enhancing irrigated agricultural production. Specifically, the NIP

3 Yaron, G. et al, Economic Valuation of Sustainable Natural Resource Use in Malawi, January 2011.

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4

emphasises increasing the area under sustainable irrigation, extending cropping opportunities,

facilitating crop diversification, creating an enabling environment for irrigated agriculture, enhancing

capacity for irrigated agriculture and promoting a business culture in the small-scale irrigated sub-

sector. The GOM recently finalised the Irrigation Master Plan and Investment Framework (IMPIF),

which builds on these policies and strategies and is the main guiding strategy for PRIDE. The IMPIF

represents a move away from a fragmented approach to irrigation development towards a joint

approach, including a pipeline of investment options. The IMPIF has been developed in extensive

consultation with government stakeholders and development partners, including IFAD.

20. The National Adaptation Programme of Action (NAPA) includes as priorities: (i) sustaining

livelihoods; (ii) enhancing food security; and (iii) increasing the resilience of food production systems

under conditions of erratic rainfall. The Adaptation window of the National Climate Change Investment

Plan (NCCIP) aims amongst others at: (i) strengthening catchment area and soil and water

conservation management; and (ii) improving community resilience through agricultural production.

Although seventeen River Basin Authorities have been proposed to address soil and water resources

management, they are as yet not a reality on-the-ground. While this makes basin-wide resource

management for the moment a challenge, existing local institutions (including the irrigation Water

Users’ Associations that have been established in recent years) are able to help resolve issues related

to land and water use in sub-catchments.

21. The national agenda for agricultural development is reflected in the Compact between GOM

and its partners for the Comprehensive African Agricultural Development Programme (CAADP), and

further specified in the Malawi Growth and Development Strategy (MGDS I and II). The philosophy of

MGDS II is poverty reduction through sustainable economic growth and infrastructure development.

Water development is defined as a key strategic area. The economic shocks experienced in 2012, led

to a refocussing of national economic policies through the Economic Recovery Plan (ERP, 2012). This

placed more emphasis on investment in irrigated agriculture; as evidenced by the formulation of a

Green Belt Initiative (GBI). Central coordination of the many projects, programmes and activities

aimed at agricultural growth is provided by the Agriculture Sector Wide Approach (ASWAp).

B. Rationale

22. Vulnerability. The precarious state of subsistence that affects smallholder farmers in Malawi

may easily worsen due to ‘shocks’. The January 2015 floods in southern Malawi took away most of

the region’s maize harvests, whereas on higher grounds elsewhere in the country the 2015 maize

production is negatively affected by a prolonged dry spell in what normally would be considered the

rainy season. The 2015 weather may be a one-off combination of extremes, but it offers a pre-view of

the future effect of climate change on weather patterns in the country. It is expected that weather

extremes occur more frequently, with soils not able to absorb fast enough the run-off water and roads

not designed to cope with floods.

23. Rural Malawians are strapped for cash, and a smallholder’s wish to carry over a balance

income from one crop cycle to invest in the next competes with the need to feed the often already

malnourished household. The surplus from the sale of agricultural produce is marginal, as farmers are

often forced to sell for a low price, due to their incapacity to store, their lack of knowledge on quality

determinants (grading) and the many small traders that stand between the farmer and the market

demand. A fall in prices for agricultural produce is as much a ‘shock’ to rural livelihoods as are

weather extremes.

24. Smallholder agriculture is stuck in this vulnerable state by a combination of factors: Land

access, land productivity, resilience to adverse weather and market access. The low resilience of

smallholder farming to adverse weather renders any effort difficult to produce the crop so urgently

needed to feed the family.

25. Land access. The access that smallholders have to land is generally a usufruct right under the

‘customary’ title, but due to the high demand for arable land the practice to sub-let such land on a

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seasonal basis to other smallholders willing to cultivate is widespread. Household access may range

from well-respected longstanding birth rights shared (and sometimes contested) between close

relatives; to an informal seasonal lease arrangement, which hardly ever extends for more than one

season, and is on preference given to those who pay in advance. This makes a smallholder’s long-

term access to land uncertain and gives little incentive to improve land productivity by investment in

soil properties and irrigation.

26. Declining land productivity. Because of high pressures and existing agricultural practices,

land resources face severe degradation resulting in a steady decline in yields (see appendix 14).

While existing lands are farmed with little investment in soil properties, new lands are located on

increasingly marginal soils. As a consequence, both soil fertility and soil moisture retention are under

pressure. Most land is farmed under rain-fed conditions and produces usually one crop in the rainy

season, with risks of failure due to extreme rains and prolonged dry spells; a second short cycle crop

follow on residual soil moisture available in the marshlands dimba. Forecasted climate change effects

(longer dry spells, more intense bouts of rainfall) will worsen the situation as topsoil is increasingly

prone to erosion.

27. Several programmes aim to reverse the trend of soil loss and declining yields. The government

invests in a Farm Input Subsidy Programme (FISP) to counter the effects of declining soil fertility on

maize production. Moreover, an Irrigation Master Plan and Investment Framework (IMPIF) has been

formulated to help expand smallholder irrigation (building a/o on the models demonstrated by the

Irrigation Rural Livelihoods and Agricultural Development Project (IRLADP)). The Sustainable

Agricultural Production Programme, through the agricultural extension services, promotes good

agricultural practices on smallholder land. While approaches and programmes exist, their impact is

limited due to the low coverage of extension services, limited regional roll-out and low adoption by

farmers.

28. Limited access to markets. A third reason why smallholders remain in their precarious

position – and remain hesitant to adopt new practices – is their limited access to input and product

markets. Inputs can be purchased from dealers, who generally have limited stock of seeds and

fertilisers, with little ability to provide advice on their optimum usage. Sale of produce takes place on

an individual basis at the end of the season (i.e. a standing crop is seldom sold), when smallholders

are most pressed for additional income. Bulking and grading takes place by the traders. There is a

limited use of calibrated units, either in terms of volume or weight. At the same time, large commodity

traders, such as ETC and Universal, indicate that although they have unmet demands, farm gate

prices remain low. The consequence of this is that farmers gain too little from the sale of their

products to invest in their farm enterprise. Moreover, a minor fall in output prices will have a relatively

large impact on smallholders’ capacity to maintain even their present subsistence level.

29. The Programme for Rural Irrigation Development (PRIDE) addresses the above mentioned

challenges and intends to render smallholder farming systems profitable and sustainable. PRIDE will

reduce vulnerability to food insecurity, to the effects of climate change and to the vagaries of the

markets by enabling farmers to sustainably enhance their production levels to surpass the household

nutrition requirements and to obtain profitable margins from their markets. PRIDE aims to achieve this

through a combination of investments in (i) expansion of irrigation and soil- and water conservation

infrastructure; (ii) organise secure land allocations for irrigated land; (iii) promotion of good agricultural

practices; and (iv) linking smallholders to improved value chains.

30. The inclusion of major investment in (re-)construction of medium-sized irrigation schemes,

ranging between 40 and 850 hectares, would substantially enhance agricultural productivity and

opens opportunities for intensified cash crop production and for more reliable market linkages. In

order to address both the rain-fed and irrigated elements of the farming system, the Programme will

address scheme cluster areas: i.e. the irrigation scheme and the rain-fed land belonging to the

villages involved in irrigation scheme development. Addressing scheme cluster areas allows the

Programme to take on a farming system perspective and to capitalise on synergies therein. It allows

to broaden the perspective on enhancing productivity and commercialisation to one where local

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resources are used optimally to better nourish the beneficiary households throughout the annual

cycle.

31. By optimising the smallholder farm enterprise – through enhanced climate resilience, increased

cropping intensities, sustainable and enhanced agricultural practices and a focus on market prices

and demands – PRIDE enhances the value of land resources. This allows for the subdivision of

present rain-fed holdings into multiple irrigated holdings; and for compensation of land loss due to

infrastructure, as all people affected by the development of an irrigation scheme can improve their

livelihood. It is this value addition that makes it possible to broker new land deals at the local level,

with better guarantees to the smallholder concerning long-term access to land. Improved agricultural

practices and stronger market linkages further increase the potential value of land and the returns to

smallholder farmers.

32. National and IFAD country portfolio objectives help define the scope of the PRIDE concept.

Investment in irrigation, crop production and market opportunities for smallholder farmers is well

aligned to Malawi’s Growth and Development Strategy (MGDS) and fits into the agenda set for

agricultural development by the Agriculture Sector Wide Approach (ASWAp).

33. The PRIDE concept – invest in soil- and water management; promote good (i.e. climate smart)

agricultural practices and improve value chains; all aimed at the smallholder farmer – follows logically

from IFAD’s Country Strategic Opportunities Programme (COSOP 2010 - 2015). The goal of the

COSOP is to “reduce poverty and expand economic opportunities among the rural population”.

COSOP objectives include: (i) increased sustainable productivity through improved natural resource

management; and (ii) the creation of sustainable agricultural input and produce markets. The COSOP

mid- term review concluded that the COSOP is well-aligned to the country framework (MGDS II, 2012

to 2016, and ERP). It also recommended prioritisation and immediate assistance to design of the

proposed Smallholder Water Management Programme, now renamed Programme for Rural Irrigation

Development (PRIDE).

34. PRIDE complements and expands the services provided by the existing IFAD portfolio, and

builds on lessons learned in the Irrigation, Rural Livelihoods and Agricultural Development Project

(IRLADP). During start-up and implementation, synergies will be developed with both the Rural

Livelihoods and Economic Enhancement Programme (RLEEP – market linkages) and the Sustainable

Agricultural Production Programme (SAPP – good agricultural practices). PRIDE will build on their

presence in some areas; and will support these programmes to expand into others.

35. The establishment of infrastructure and farming systems that enhance resilience of scheme

cluster areas to climatic shocks and -risks will be supported by the dedicated IFAD Adaptation for

Smallholder Agriculture Programme (ASAP), and will build on lessons gained through this programme

in sub-Saharan Africa.

36. Given its track record in irrigation development, its portfolio of complementary programmes and

its comparative advantage in funding climate-resilient investment in soil and water management and

climate smart agriculture, IFAD is well placed to support the Programme for Rural Irrigation

Development.

II. Programme description

A. Programme area and target group

37. PRIDE is a national programme that supports smallholder farmer communities in and around

medium-scale irrigation systems.

38. Twenty-four schemes have been pre-selected – of which 15 are prioritised – in two regional

clusters in the Northern and Southern Malawi. The selection of irrigation schemes has been guided by

the Irrigation Master Plan and Investment Framework (IMPIF). The IMPIF, finalised in January 2015,

is GOM’s sector strategy and has been developed in consultation with development partners including

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IFAD. The Master Plan builds on the lessons learned in the sector, notably from the IFAD and World

Bank-funded IRLADP, to determine major strategic directions for investment. In addition, the IMPIF

Investment Framework prioritises potential schemes using a multi-criteria analysis covering technical

feasibility, stakeholder support, market potential, economic viability and environmental factors.

39. From the IMPIF priority list PRIDE applies two additional criteria for scheme selection:

(i) minimum size 40 ha, to secure sufficient scale for marketing, and maximum 850 ha, to secure

manageability by WUAs; and (ii) not located in a district where substantial irrigation investment is

planned under other projects, to avoid competition for implementation capacity. Priority has been

given to schemes generating EIRRs of above 10%. Finally, schemes have been clustered to realise

efficiencies during implementation; with preference given to three schemes within one area to be

developed in series. Sequencing scheme development in one area allows for efficiencies in staff,

contracts and cross-learning. To reduce the risk of delays over the total Programme period, the larger

– and often more complex – schemes would generally be the first to be developed; allowing possible

delays to be recovered over the subsequent years. The selection of prioritised schemes has been

reviewed and confirmed by the Department of Irrigation.

Table 1: Irrigation schemes short-listed for PRIDE

Lot Scheme District Irrigation Service Department (ISD)

Command Area (ha)

EIRR (%)

Study level

1

Marko Chitipa Karonga 727 15 Pre-feasibility

Matoponi Zomba Machinga 73 16 Feasibility

Mlooka Zomba Machinga 138 13 Feasibility

Mpamba Nkhata bay Mzuzu 788 18 Pre-feasibility

Nkhulambe / Wowo Phalombe Blantyre 310 21 Feasibility

Kasimba Karonga Karonga 162 10 Pre-feasibility

2

Mwenilondo Karonga Karonga 524 23 Pre-feasibility

Nazombe Chiradzulu Blantyre 470 11 Pre-feasibility

Mafinga Hill Chitipa Karonga 43 15 Pre-feasibility

Chanyungu Mposa Machinga Machinga 114 14 Feasibility

Msenga Nkhata bay Mzuzu 836 23 Pre-feasibility

3

Chipofya Rumphi Mzuzu 369 20 Pre-feasibility

Lingoni Machinga Machinga 189 18 Feasibility

Kadewere Chiradzulu Blantyre 300 10 Pre-feasibility

Kasano Karonga Karonga 95 20 Pre-feasibility

Totals 7 districts 4 ISDs 5,138 ha

40. The data show indicative scheme costs, EIRRs and benefitted areas vary between IMPIF

estimates and available studies; and some schemes are studied at pre-feasibility level only, while

others have advanced to detailed design. In all cases, additional interaction with intended scheme

beneficiaries is needed to confirm planning and design choices. Consultative planning with intended

beneficiaries is still required to address the consolidation of rain-fed land into irrigated land; and

environmental and social studies and reviews may need to be undertaken as required under the

relevant Malawian and IFAD policies and regulations. Henceforth, a 9 scheme reserve list has been

added to the priority list of 15. In selecting the reserve schemes a minor concession has been made

with respect to the EIRRs.

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Table 2: Irrigation scheme reserve list

Scheme District Irrigation Service Department

Command Area (ha)

EIRR (%)

Study level

Dowa Dambo Dowa Kasungu 375 22 Pre-feasibility

Nkawinda/Bakasala Blantyre Blantyre 121 28 Feasibility

Likabula/Kholiwe Mulanje Blantyre 629 16 Feasibility

Faiti Mwanza Blantyre 505 8 Pre-feasibility

Mdenga Balaka Machinga 204 10 Pre-feasibility

Lupenga Mzimba Mzuzu 313 8 Pre-feasibility

Perete Phiri Mzimba Mzuzu 564 8 Pre-feasibility

Bwanamudoko Mzimba Mzuzu 784 8 Pre-feasibility

Msindwa Nkhotakota Salima 337 8 Pre-feasibility

Totals 6 additional districts

1 additional ISD 3,833 ha

41. PRIDE’s priority is to develop approximately 15 irrigation schemes, resulting in about 5,200

hectares newly under irrigation. Given an average irrigation scheme size of approximately 350 ha;

each irrigation scheme will be associated with one or more villages, whose inhabitants cultivate the

land to be brought under the scheme. An estimated 90% of the smallholder households in these

villages will take part in the irrigated agriculture while retaining lands for rain-fed farming, whereas the

remainder 10% will continue to work only on their rain-fed land outside the irrigated area. Farmers in

the latter category are not willing to make the transition into irrigated agriculture but will benefit from

PRIDE support to good agricultural practices and market linkages for rain-fed crops. PRIDE supports

both types of smallholder farms. The figures in the table are estimates only and will be further

specified by the Programme’s baseline survey.

Table 3: Total and estimated beneficiary population in PRIDE pre-selected scheme cluster areas

Population segment Total Population Irrigated land Rain-fed land

Estimated

beneficiary

population

# HH ha ha # HH

# smallholder

households targeted

for irrigated and rain-

fed agriculture 17,500 5,250 10,500 15,750

# smallholder

households targeted

for rain-fed

agriculture only 2,000 0 1,800 1,800

19,500 5,250 12,300 17,550

42. PRIDE will invest in irrigated and rain-fed agriculture on lands belonging to villages involved in

the irrigation scheme development: the scheme cluster areas (see figure 1). Thus, the entire farming

system, including its rain-fed and irrigated sub-system, is taken into consideration.

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Figure 1: Schematic of PRIDE’s targeting of scheme cluster areas

43. The target group is defined as smallholder farmers in the selected scheme cluster areas.

Within this group, a primary target group comprises the households that are currently food insecure

and produce mainly for subsistence.

44. Poverty. Based on the data reported in appendix 2 and in the underlying working paper, the

target group can be further analysed in terms of poverty and a typology can be applied as follows:

Ninety per cent of rural dwellers are reportedly engaged in farming. In the scheme cluster areas

this percentage can be assumed to be virtually hundred as the small commercial centres –

where shops, services and schools are located – are generally located on the roadside rather

than in the scheme cluster areas. This would especially hold true if we consider the household:

while some individuals may be engaged outside agriculture, the household living in the area still

would be engaged in agriculture;

Rural poverty in the northern and southern regions is 60 and 63% respectively. Assuming that

non-farming households are generally better-off, and that these households are generally

absent in the scheme cluster areas, it seems reasonable to estimate prevalence of poverty in

the scheme cluster areas at 70%. Households that are poor but not ultra-poor (see next) are

food insecure in at least some years, while non-poor smallholder households are food secure in

all years and are able bounce back after extreme events;

Extreme poverty, coinciding with food deficiency, is reported at 29 and 33% for the rural north

and south respectively. Here it is estimated at 35%, reflecting the absence of well-off non-

farming households in the total sample. This category includes landless and near landless

households who largely depend on agricultural labour.

Table 4: Target group typology

Categories Households (#) Households (%) Support by PRIDE

Total 19,500 100 --

Non-farming households 0 Negligible --

Food secure smallholders 5,850 30 all

Food insecure smallholders

6,825 35 all, but 2.2 (marketing) with

limits Food deficit smallholders 6,825 35 All but 2.2

(marketing)

45. Gender. Poverty and food security are – like elsewhere – not gender neutral. Close to 30% of

rural households are female-headed; while the incidence of poverty among these households is some

15% higher than average. Female-headed households earn only 60% of the annual income of male-

headed households. Some 60% of the expenditure of female-headed households is on food whereas

for male-headed households it is 54%. Roughly 70% of full-time farmers are women, but women

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hardly ever have full control over agricultural land and their access to credit is lower than for their

male counterparts.

46. Youth. Little data are available on the position of youth in the rural areas. At an aggregate level,

it is known that the technical and vocational training sector is unable to absorb all qualified applicants,

while the formal employment sector only creates 30,000 jobs per year against 300,000 educated and

semi-educated new entrants. This would leave the rural youth with very poor prospects for

employment outside the agricultural sector, while agriculture itself does not create many new

opportunities in either services or processing. A recent small but significant household category

comprises child-headed households, which came into existence as an effect of the HIV pandemic.

47. PRIDE supports smallholder farmers in the scheme cluster areas (i) to gain – through

membership of irrigation Water Users’ Association (WUAs) – secure access to irrigated land; and

(ii) to pursue climate-smart good agricultural practices and viable links to input and produce markets

on both irrigated and rain-fed lands. Whereas all smallholder farmers in the scheme cluster areas can

benefit, PRIDE will include mechanisms to prioritise food-deficit and food-insecure households to

partake in the programme benefits, while mechanisms will also be included to secure participation in

programme benefits by women and youth. Adequate targeting and a focus on the priority target group

is further safeguarded by the inclusion of a gender and targeting specialist in the Programme

Coordination Office.

48. Irrigated lands. When reallocating the land resources that fall in the irrigation command area,

priority will be given (i) to provide smallholders who contributed rain-fed land in the command area

with irrigated plots of an at least equal value; and (ii) to provide project affected people with an at least

equal livelihood opportunity. Remaining irrigated land resources would be redistributed by the WUA

and the community leadership, through a consultative process with adequate government oversight,

whereby allotments are on preference given to food-deficit and food-insecure households that are

willing to transit into irrigated agriculture. Programme baseline surveys and subsequent monitoring will

help to confirm that food-deficit, food-insecure and female-headed households have, at least,

equitable access, and that this access is not compromised over time.

49. Soil and water conservation. The prioritisation of areas for soil and water conservation

investments should employ socio-economically neutral criteria: erosion vulnerability, environmental

risks and community priority. As the infrastructure to protect or restore degraded lands will need to be

maintained and cared for, benefits of this land should accrue to conservation groups charged with

maintenance and daily care. Participation in these groups, and the distribution of benefits within these

groups, should give at least equitable opportunities to food-deficit, food-insecure and female-headed

households. This will be implemented by community institutions (see III.B and appendix 5) and will be

confirmed through programme monitoring.

50. Good Agricultural Practices. Smallholder farmers and Lead farmers – initially assigned by

community institutions – will jointly prepare a curriculum for the farmer field schools, the predominant

extension approach in PRIDE and SAPP. Lead farmers will share new knowledge and skills within

farmer field schools. Lead farmers will be both female and male and their position will after an initial

season rotate amongst the members of the farmer field school. Monitoring will confirm that around

30% of the lead and “normal” farmers at any given point in time is female. To enhance adoption of

good agricultural practices by poor smallholder households, including female-headed households –

PRIDE, through the service agencies, promotes a household mentoring approach whereby the entire

farmer field school helps the deprived households to reap the benefits of the opportunities offered.

This means that the FFSs should all reflect a fair cross-section of society. Examples for GAPs in

irrigated land include Integrated Pest Management, prudent use of fertilisers, System of Rice

Intensification (SRI)’and last but not least improved post-harvesting.

51. Mainstreaming nutrition. To ensure that higher production and better marketing do contribute

to an integral improvement of livelihoods, targeted mainly at both, food deficit and insecure

households, PRIDE will align to the GoM’s thrust on improving nutrition through nutrition extension

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and training. This will be guided by an aim to substantially reduce child stunting and tracked through

the monitoring system. In addition, an investment in improved cooking stoves with training on food

preparation will be made.

52. Improved cooking stoves. Whereas for all other programme benefits, the degree in which a

household benefits reflects the land resources that the household has access to, this is not true for

the promotion of improved cooking stoves. The programme will therefore employ criteria that ensure

that the cooking stoves are on priority installed in female-headed households, child-headed

households and in food-deficit households. Since women (and children) are charged with the

collection of fuelwood, the improved cooking stove can have an especially significant labour-saving

impact in female and child -headed households. The associated training on nutrition is especially

relevant for the food-deficit households, helping them to make best use of the limited food resources

they have. Main effects of saving fuelwood will be reducing Green House Gas emissions and savings

households cash on wood purchases.

53. Market linkages. Farmer business schools shall, like the farmer field schools, reflect cross-

sections of society, whereas producer groups – which are groupings of farmers willing to pursue a

market opportunity – will be promoted to remain inclusive for food-deficit and food-insecure

households. However, the more pressed for food, the less one can expect these households to

engage in commercial cropping. Their benefits may also be indirect through the provision of

agricultural labour. Activities like bulking and grading of crops, use of information technology for

farming and marketing and introduction of mechanisation will with priority involve youth.

54. PRIDE will engage smallholder households (identified with emphasis on poorer households,

women and female-headed households and rural youth) in crop production and marketing for food

and income on both irrigated and rain-fed land. PRIDE’s targeting mechanism draw on IRLADP

lessons (see section II.D) and aim for equitable participation, including the allocation of irrigated land

and in provision of other services, such as training. For many activities – especially during

consultative planning at scheme cluster area – interactions will take place with existing entities (e.g.

local leadership, village and agriculture development committees). PRIDE will deliver its services to

groups of beneficiaries, including Water Users’ Associations, farmer field schools and farmer business

schools. Given the need to secure the leasehold right of irrigated land, water users will be helped to

form and register Water Users’ Associations. If the WUA is in a position to engage in large-scale

contract farming, registration as an Agricultural Cooperative should be considered. Other beneficiary

groups – especially those engaged with markets – may need help to register as a legal entity, but only

if doing so improves their prospects.

55. PRIDE aims to specifically reinforce the position of female smallholder farmers in both in

access to irrigated lands, in agricultural innovation and in participation in cash crop value chains.

Women’s access to land in village societies that can be either matrilineal or patrilineal needs to be

taken into account when assessing land agreements. Women’s right to revenues needs to be

considered when selecting which cash crops to promote. Extension workers need to be given gender

training, and those female extension workers that are employed need to be enabled to reach female

smallholder farmers. New practices that increase women’s workload need to be set-off by introduction

of labour-saving practices, such as the introduction of improved cooking stoves.

56. The Programme Coordination Office will include a gender and targeting specialist to advice the

programme – and the agencies mobilised for its implementation – on measures to ensure adequate

targeting.

B. Development objective and impact indicators

57. PRIDE’s goal is to help enhance the resilience of rural communities to food insecurity, climate

change effects and economic shocks. Its development objective is that smallholder farmer households

increase income and nutritional intake from sustainable agricultural production. Success of PRIDE

can be assessed by comparing the following impact indicators at the Programme’s start and close.

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Surveys during the first and final years of the Programme will help gauge the impact. Each indicator

will be differentiated according to gender, age and wealth class:

The number of smallholder households reporting enhanced cash income;

The number of smallholder households reporting decreased incidence and duration of hunger

periods measured by the number of meals per day and by dietary diversity;

Number of smallholder households s applying climate-smart agricultural practices;

The number of smallholder households with an 20% improvement in the household assets

ownership index;

The occurrence of child malnutrition, as shown by inter alia a 20% reduction in occurrence of

under-five child wasting.

C. Outcomes/Components

Component 1: Irrigation Development and Catchment Management

Sub-component 1.1 Land and Water Governance

Sub-component 1.2 Irrigation System Development

Sub-component 1.3 Soil and Water Conservation

Component 2: Agriculture and Market Linkages

Sub-component 2.1 Improved Agricultural Practices

Sub-component 2.2 Market Linkages

Sub-component 2.3 Mainstreaming Nutrition

Outcomes

58. PRIDE aims for two complementary outcomes:

Outcome 1: Climate-resilient 4land and water management systems for smallholder households

on both rain-fed and irrigated lands;

Outcome 2: Environmentally and economically sustainable agricultural production systems

adopted by smallholder households on both rain-fed and irrigated lands.

59. The above programme outcome are supported by two components, divided into six sub-

components: Component 1 pursues irrigation development and catchment management; and

Component 2 develops climate smart agriculture and viable market linkages. Both components are

designed anticipating the exit of Programme support and therefore address questions of long-term

access to and management of resources and of viability of farming systems beyond the Programme

support period.

60. Project management – and the knowledge management that forms part of that – is neither an

outcome nor a programme component. Project management is discussed in section III.


Outcome Outputs

a) Climate-resilient land and water management systems for

smallholder households on both rain-fed and irrigated

lands

1.1 Communities effectively manage their

medium-sized irrigation systems

1.2 Medium-sized irrigation systems (50-1,000

ha) established

1.3 Erosion-affected and vulnerable land rain-fed

land recovered

61. This component aims to develop climate-resilient land and water management systems for

smallholder households on both rain-fed and irrigated lands. Sub-component 1.1, Land and Water

4 In PRIDE, resilience to effects of climate change will be measured by households having access to irrigated land,

cultivate at least 3 different crops (diversification)and apply good agriculture practise including soil improvement

techniques.

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Governance, concerns the preparation for and management of irrigation infrastructure. Irrigation

investments (sub-component 1.2) aim at enhancing agricultural productivity. Sub-component 1.3

focuses on the soil and water conservation measures in the wider scheme cluster areas.

Sub-component 1.1: Land and Water Governance

62. This sub-component targets the preparation stage for all investments (including component 2)

in the scheme cluster areas. This includes the management, operation and maintenance of irrigation

schemes by WUAs, building on the approach used by IRLADP. The diagram provides an overview of

the process and the entities involved.

Figure 2: the community planning and investment agreements (CPIA) process

63. Preparation activities and investment agreements. A Community Planning and Investment

Agreement (CPIA) process will be initiated in scheme cluster areas, which includes free prior and

informed consent (FPIC) procedures and precedes any investment decision. PRIDE will set up a

multi-disciplinary CPIA team in each district to guide the preparation activities, comprising of

concerned government agencies at District level and specialized service providers where required.

The communities will during initial consultations be represented by their leadership and their existing

village development committees, who will be asked to convene a Combined Village Committee for the

scheme cluster area. Following an appraisal process, increased knowledge on the proposed

investments will enable the farmers to elect a WUA formation committee for the Water Users’

Association. The formation committee will take a lead role in the establishment of land and water

agreements, overseen by the Combined Village Committee. The other activities to be undertaken in

the scheme cluster areas, such as soil & water conservation, good agricultural practices and market

linkages, will be handed over to beneficiary groups and lead farmers who will liaise directly with

agencies implementing the PRIDE programme. Facilitators from within the community will be trained

to enhance participation of women and youth in the meetings, and as such improve equality in the

membership of committees.

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64. The CPIA process comprises the following key elements:

Scheme area appraisal – Participatory Rural Appraisals (PRAs) will be conducted by the CPIA

team together with the combined village committee, including the appraisal of areas to be

protected, consultations on irrigation scheme planning, and identification of crops and markets

to work on. The appraisal of irrigation scheme areas will capture the current land tenure

situation in terms of land use and land ownership. In this stage, the WUA formation committee

will be assigned.

Social and environmental scoping – in order to define the follow-up steps to mitigate

potential negative social and environmental impacts, a scoping note will be prepared at this

stage, with due involvement of the community representatives, and with consultation of

potentially affected people (see also section III.A).

Land and Water Agreements – Consultations will be held to establish Land and Water

Agreements between the WUA, landowners and, where applicable, Traditional Authorities. At

this stage, the WUA formation acts on behalf of the interests of the to-be-formed WUA; but the

agreement itself can only be concluded once the WUA is formally established. The

consultations will address (i) access to land for farmers with less access at present;

(ii) compensation for those affected by scheme construction activities; (iii) grievance

mechanisms; and (iv) confirmation of free, prior and informed consent. The Land and Water

Agreements will include (i) the amount of land each WUA member will have access to,

including procedures on land and water allocation in times of limited water availability; (ii) rules

for changes in access to land in case of non-payment, non-performance or death;

(iii) stipulations on sub-leasing; and (iv) procedures for conflict resolution.

Scheme Investment Agreements – In parallel to the Land and Water Agreement and WUA

establishment, the WUA formation committee will – in preparation to a WUA decision –

negotiate the irrigation scheme lay-out and the beneficiary contribution to scheme development

with the design consultant mobilised by PRIDE. In general, the WUA takes responsibility for

land levelling, construction of tertiary and field canals, and for collection of local construction

material. PRIDE aims to keep the beneficiary contribution within 20% of the total scheme value.

This will be carefully monitored during planning, design and construction. The WUA will form a

construction supervision committee of which the responsibilities need to be discussed; and

which’ role needs to be reflected in the construction contract. The conclusions of these

negotiations will be documented in a Scheme Implementation Agreement, to which the WUA

and the services mobilised by PRIDE will be held accountable.

WUA establishment – This activity is further detailed below.

Soil & Water Conservation Planning – Concurrent with the planning of the irrigation scheme,

the communities will also plan investments in the wider scheme cluster area. This planning will

be done through conservation groups, which are initiated by the combined village committee for

each prioritised eroded or erosion-prone area. These activities will be carried out under sub-

component 1.3.

Good Agricultural Practices and Market Linkages – Crucial to the success of PRIDE’s

investments, farmers will be assisted in their farming practices and value chain linkages. The

combined village committee will help enlist lead farmers for these activities, who will in turn form

groups to take part in the activities carried out under component 2.

65. All plans developed in the CPIA process will be submitted through the Area Development

Committee (ADC) to the District Executive Committee for approval and will provide the basis for

preparing the annual work plan and budget.

66. WUA establishment and strengthening. As part of the actions identified during scheme

appraisal, a WUA will be formed for each scheme as the legal entity holding lease of the irrigation

command area and responsible for land and water management in this area. WUAs are private, non-

profit, self-supporting, independent entities with four main functions: (i) management of WUA

members’ access to irrigated lands; (ii) operation and maintenance of the irrigation and drainage

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systems; (iii) collection of water charges and membership fees; and (iv) provision of law and order

among the irrigators (including resolution of irrigation water related conflicts).

67. PRIDE will support the establishment and strengthening of WUAs with the following activities:

Cross-learning – future WUA members will visit nearby functioning WUAs to get acquainted

with irrigation farming, scheme management and to learn from their successes and failures;

WUA constitution – election of executive committee members, interactive development of by-

laws and registration as a legal entity;

Formation of subcommittees – including technical training on management, finance and land

and water management;

Land access – Establishment of WUA parcel registers and the registration of user land rights;

Water abstraction rights – support to the formal registration of the WUAs water right;

Recurrent leadership training (every 2 years) for WUA Executive Committee members and

subcommittee leaders;

Recurrent scheme operation and maintenance training (every 6 months) for WUA members

involved in irrigation operation and maintenance.

68. As part of the WUA start-up phase, PRIDE will provide limited funding to WUAs that submit

well-justified plans. Using the experience from cross-learning visits and initial training, the WUAs will

prepare investment proposals against the predefined maximum budget. Proposals will be assessed

on their merits by a committee formed by PRIDE. This modest facility will allow WUAs to pursue minor

improvements of infrastructure, purchase of office equipment or communication aids, all with the

ultimate aim of improving scheme management.

69. Joint review, on-demand training and studies. PRIDE will monitor the implementation and

impacts of land and water agreements through regular joint reviews, the results of which will be

reported both to the WUA as well as community representatives. A specific tracer study will be

conduct over the full length of the programme on a limited number of schemes, to get an in-depth

understanding of the land access dynamics and how these affect agricultural practices, and to

propose improvements to the CPIA process. To do so, PRIDE will link up with the Global Land Tools

Network through their partnership with IFAD under the regional “Tenure security learning initiative”

grant programme.

70. Recurrent WUA inspection visits will serve to assess the state of the irrigation system, advice

the WUA on required O&M and to optimise the scheme’s functioning. The inspections will also identify

capacity building needs, which will be addressed through needs-based and on-demand training. This

inspection and needs-based training will be done during the first three years of WUA functioning. Both

the land and water agreements reviews as well as the WUA inspection visits will at programme start

include recently finished IRLADP schemes to guarantee their continuity.

71. To capitalise on the sizeable investments made under PRIDE, the programme will include

comparative studies on emerging irrigation practices. The topics for these studies will be defined as

practices emerge, and could range from O&M modalities, land and water distribution practices and

agricultural strategies to financial management and conflict resolution.

Sub-component 1.2: Irrigation System Development

72. The main focus of this sub-component is the development of 15 irrigation schemes, covering

about 5,200 ha. Investments in this sub-component are guided by the Irrigation Master Plan and

Investment Framework (IMPIF). One of the key strategies that emerged is to invest in water storage.

With increasingly erratic rainfall patterns as a result of climate change and utilisation of dry season

river flows reaching its maximum, water storage has become a necessity for further agricultural

development in Malawi. Water storage will have a positive effect on the regulation of water flows and

as such, combined with improved catchment management, reduce the chance of river floods.

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73. The shortlisted schemes (table 1) are located in seven districts concentrated in four Irrigation

Service Divisions (ISDs). With an average design-to-commissioning time of 3 years, irrigation

investments will be phased in three lots (see figure 2) with 1 or 2 schemes per ISD in each lot. The

ISD and district staff as well as contractors can as such optimise their work on consecutive schemes.

The more complex schemes will be constructed first, to avoid late-programme delays. Household land

allotments, estimated at an average 0.3 ha per household, will vary from scheme to scheme and will

be determined in the Land and Water agreements (sub-component 1.1).

Figure 3: Phasing of irrigation scheme development

74. Environmental and social due diligence. Four of the schemes in the shortlist include water

storage by medium-sized earthen dams, between 8.5 and 18.5 meters in height and with storage

capacities between 4.5 and 9 million m3. Two schemes use pumps for water supply, others are

gravity-fed. Each scheme will have its own social and environmental risk profile, which will be

established during scoping (see above). Especially for the schemes where construction works and

reservoirs impact on present land use and settlement, will need to undergo a thorough environmental

and social impacts assessment (ESIA), including the drafting of environmental and social

management plans (ESMP) and – where need be – resettlement plans per scheme area. These

assessments and plans are required by IFAD’s Social, Environmental and Climate Assessment

Procedures. The SECAP is required to be adopted by the Government of Malawi prior to presentation

of the programme to the IFAD executive board.

75. Environmental Potential negative impacts and proposed mitigation measures will be discussed

with the community representatives and with affected people, conform the applicable regulatory

framework. In all cases where an ESIA is needed, the community leadership will be asked to

participate in the set-up of a mechanism to address grievances. Compensations for resettlement and

loss of access to rain-fed land will be included in the land- and water agreements.

76. Implementation readiness is a major focus for PRIDE, as irrigation projects are known to be

prone to start-up delays. The availability of feasibility studies (5) and pre-feasibility studies (10)

reduces the risk of start-up delays, while a start-up financing facility can be used between signing and

first withdrawal to launch further consultancies for feasibility and detailed design studies. Final

commitment to invest in schemes will be based on feasibility studies and on community commitment;

and flexibility will be practiced in case unforeseen complications arise, in which case schemes from

the reserve list (see table 2) will be selected.

77. Unit costs and economic/ financial feasibility per scheme. Based on the available studies

and IRLADP’s experience, the average unit (hardware) costs are estimated at 7,862 USD/ha,

including an estimated 20% farmer contribution. These unit costs are significantly lower than the

average unit costs for new irrigation construction in Sub-Saharan Africa of 13,802 USD/ha (Inocencio

et al., 2007; in 2014 USD values), yet higher than the average unit costs for projects having an EIRR

larger than 10% (4,681 USD/ha). The high unit costs can partly be explained by high costs of

transport and imported materials, yet there is scope for PRIDE to push for more cost-effective

designs.

78. Integrated Contract pilot. In an attempt to find new methods to contain the high unit cost for

irrigation development – and thereby to enhance the feasibility of investing in smallholder irrigation –

the Programme will pilot an innovative procurement arrangement, that has been successfully applied

by other sectors. In an effort to reduce unit costs, PRIDE will pilot the use of integrated contracts; one

combined contract for design, build and transfer (DBT) of schemes which will be tendered to consortia

of engineering firms, civil works contractors and organisational development specialists. The DBT

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contract value will be based on a unit cost per hectare, instead of on a bill of quantities. This would

give the consortium the incentive to minimise costs and maximise land under irrigation through water

efficiency gains, and to achieve this by working more closely with the community. Payment of the

contractor would be based on actual area irrigated after an initial period of operation (say 3 years);

and on evidence of a successful transfer of scheme management. Such contracts will require higher

contract management capabilities on the side of PRIDE, and substantial working capital on the side of

the consortium, and would place new demands on quality control as a part of contract supervision.

PRIDE will carry out market consultations to address these issues and pilot a DBT contract for one

scheme.

Component 1.3: Soil and Water Conservation

79. This sub-component addresses urgent environmental degradation risks in scheme cluster

areas by funding soil and water conservation measures. This is part of PRIDE’s sustainable land

management strategy which also includes the promotion of good agricultural practices in sub-

component 2.1. All activities in this sub-component are financed through ASAP.

80. The overall approach for soil- and water conservation in the scheme cluster areas is to invest in

measures that address land degradation, on the proviso that management of the lands thus protected

or restored is placed with conservation groups. In return for ensuring the upkeep of the infrastructure,

these groups can reap benefits from the land. This will be achieved through for instance the planting

of dual-purpose trees or restoration of soil cover on degraded lands by grasses suitable for cut-and-

carry practice.

81. Planning. In the CPIA process (sub-component 1.1); priority areas for soil- and water

conservation measures will be identified in conjunction with the combined village committee. For each

prioritised area, the smallholders directly associated with the area will be promoted to form a

conservation group (see appendix 5 for an overview of organisations). Local knowledge on specific

environmental degradation risks will be the primary guide to the selection of interventions, supported

by geographical information from the CPIA process, including land degradation vulnerability

assessments. The planned interventions in natural resources management will be drawn up alongside

the agreements for the irrigated command area, and two yearly follow-up meetings will be held

between agency staff and combined village committee to review the management of the investments.

82. Investments in this sub-category specifically aim at:

Restoration of soil cover, targeting vulnerable grounds;

Protection of river buffer zones through demarcation and possible fencing off;

Erosion control investments such as vegetated contour bunds and gabions for tackling rill

erosion and plugging of gullies, respectively;

Reforestation of slopes through the provision of seedlings. Especially communities where

improved cooking stoves (sub-component 2.4) are introduced will be supported in community

forestry and agro-forestry using for instance fast-growing nitrogen-fixing species like pigeon

pea, Tephrosia, Senna, and Gliricidia; along with species that can be used as fuel wood.

83. Implementation and joint reviews. Implementation will be done through conservation groups.

The planning of the natural resources management investments will need to ensure these generate

benefits for the conservation groups and at the same time upgrade the local natural resources base.

Representatives of the conservation groups will participate in the planning meetings and will receive

technical assistance through extension services as required.

84. Scaling-up. The approach used in PRIDE follows national strategies for catchment

management, yet is applied to a smaller area so that a notable local impact can be created within the

available resources. The investments in the scheme cluster areas will provide a model for

comprehensive catchment management, and could be scaled-up through mobilisation of additional

resources by Government and/or donor agencies (see section IV.D).

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85. The objectives and outputs of this component are as follows:

Objective Outputs

b) Environmentally and economically sustainable agricultural

production systems adopted by smallholder households

on both rain-fed and irrigated lands

2.1 Smallholder farmers trained in good

agricultural practices on rain-fed and

irrigated land

2.2 Smallholder farmers linked to markets

2.3 Mainstreaming nutrition

86. PRIDE focusses on the complementarity of irrigation schemes, good agricultural practices

(GAPs) and market linkages. To achieve the latter two, PRIDE supports transfer of knowledge to

smallholder farmers through trials and demonstrations. Demonstration fields in the scheme cluster

areas show good agricultural practices and their potential benefits; while better information from the

private sector on market potential and opportunities should increasingly inform smallholders’ crop

choices. During the preparation stage, PRIDE will define in consultation with the existing

organisational structures and existing markets which crops to disseminate good agricultural practices

for, and which potential cash crop value chains to pursue. During this stage, the beneficiaries form

farmer field schools and farmer business schools.

Component 2.1: Good Agricultural Practices

87. The introduction of good agricultural practices by PRIDE builds on the experience gained in

SAPP. PRIDE will focus on adaptation and dissemination of existing climate-smart Good Agricultural

Practices. GAPs to promote include: utilisation of climate information services, conservation

agriculture (CA), irrigation optimisation, use of improved inputs, application of integrated pest

management and reduction of post-harvest losses.

88. Climate-smart agriculture/good agricultural practices: The UN Food and Agriculture

Organisation describes climate-smart agriculture, forestry and fisheries (CSA), as a contribution to the

achievement of sustainable development goals. CSA integrates the three dimensions of sustainable

development (economic, social and environmental) by jointly addressing food security and climate

challenges. CSA is composed of three pillars: (i) sustainably increasing agricultural productivity and

incomes; (ii) adapting and building resilience to climate change; and (iii) reducing and/or removing

greenhouse gas emissions, where possible. PRIDE will focus its extension efforts on the

dissemination of good agricultural practices, which fall within the definition of climate-smart

agriculture. For the moment, the following categories of climate-smart good agricultural practices have

been identified:

Use of climate information services – Farm decision should increasingly be informed by

accurate and localised information on weather and weather patterns. PRIDE will invest in an

assessment of the existing agro-meteorological network and will help upgrade the same based

on the needs of smallholder farmers, and especially in reflection of the need to optimise

irrigation releases. PRIDE will purchase portable weather forecasters, which can be distributed

to well-performing WUAs and to the extension field offices. Training will be given in the

interpretation and the use of weather and climate information. Communication channels such

as community radio programmes, internet and mobile phones will be utilised to disseminate the

information.

Optimisation of irrigated agriculture – Precise and timely application of irrigation water can

produce crops in predictable quantity, quality and time. Good preparation of, and care for,

irrigated soils help maximise the storage and use of soil moisture. Optimisation of water

deliveries helps bring the maximum possible command area under irrigation. Irrigation is

relatively new to Malawi, and government extension services are mainly focussed on rain-fed

farming. PRIDE will invest in research trials, technical assistance and extension services to

provide guidance to smallholder farmers turning to irrigation.

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Conservation agriculture – Conservation agriculture (CA), as defined by FAO, is a concept for

resource-saving agricultural crop production that strives to achieve acceptable profits together

with high and sustained production levels while conserving the environment. Conservation

agriculture has three principles: minimum mechanical soil disturbance; creation of a permanent

organic soil cover protecting the top soil; and crop rotation with more than two species. PRIDE

uses the experience of SAPP, which promoted demonstration sites to show the impact of CA,

including zero tillage, residue retention, basin planting, crop rotation, mulching, composting and

intercropping with leguminous species. CA in agricultural plots complements the soil- and water

conservation measures implemented in the scheme cluster areas under component 1.

Access to and use of improved inputs – This GAP aims to boost productivity through

introduction of high-yielding, short-maturing, drought-tolerant varieties. In addition, availability

and correct use of inputs such as seeds (e.g. inoculated legumes), fertilisers, natural

herbicides/pesticides and agro-chemicals will be promoted. PRIDE will help engage smallholder

farmers as contract farmers for seed multiplication, in cooperation with a qualified seed

company. PRIDE will train agro-dealers on the correct use (quantity, handling and timing) of

inputs. Other topics might be micro-packaging of inputs and timely procurement and delivery.

Training of agro-dealers would enable these to train smallholder farmers, as and when inputs

are purchased.

Integrated pest management – is defined as ‘the careful consideration of all available pest

control techniques and subsequent integration of appropriate measures that discourage the

development of pest populations and keep pesticides and other interventions to levels that are

economically justified and reduce or minimise risks to human health and the environment’

(FAO). IPM emphasises the growth of a healthy crop with the least possible disruption to agro-

ecosystems and encourages natural pest control mechanisms. Attention to pest management is

needed, as irrigated agriculture enables larger tracts to be grown in a single crop. PRIDE

provides funds for an inventory of existing IPM practices relevant to the crops grown in the

Programme area; and for adaptive research on IPM practices. Based on this, IPM Good

Agricultural Practices will be formulated and disseminated.

Post-harvest management – Post-harvest losses are high at about 30% on average, while

figures differ per crop. Rather than increasing pressures on soils, investment in post-harvest

management contributes to enhancing the marketable yields. Existing practices, such as

wetting peanuts to increase weight, may be detrimental as – in the case of this example –

growth of fungi is promoted, which in turn produce unacceptably high concentrations of

aflatoxin. PRIDE will transfer existing knowledge – tailor-made for each crop – to improve

timing of harvest, grading of produce, good storage practices and timing of collection, in order

to help reduce losses. Low cost improved storage facilities for smallholders will be

demonstrated and promoted.

89. Documentation of GAPs. PRIDE aims to define standardised documentation on the GAPs that

it promotes. The aim is to make available well-developed material – primarily to the extension cadre

and lead farmers – for a limited number of GAPs. The GAP fact sheets contain highly visualised

information on the proposed practice and on its relevance and anticipated impact. For each GAP,

information on productivity and profit will be complemented by information on the nutrition impact and

on the importance of diversified sources of nutrition (see also component 2.3). PRIDE will partner with

SAPP and the CGIAR centres present in Malawi to strengthen the knowledge base on GAPs.

90. Farmer to farmer extension work: The use of lead farmers has already been proven under

IRLADP and SAPP, and by NASFAM. The lead farmers concept shall be integrated in Farmer Field

Schools, and financial support of the project provided to the group as a whole for their common

activities. Lead farmers – female and male – will initially be identified in consultation with the

leadership and community representatives in the scheme cluster areas. Lead farmers will benefit from

the provision of demonstration packages and from training to build their knowledge of different GAPS

and their skill in extension and communication. In return, the lead farmers will be asked to form

Farmer Field Schools (FFS) comprising representatives from twenty households each. Through the

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FFSs, selected graduating farmers with technical capacities, trusted by their peers and leadership

characteristics will form the new lead farmers (facilitators) and establish their new FFS farmers group.

FFSs should have a clear curricula designed for specific crops/GAPs that is jointly developed by

extension, research and the FFS specialists. FAO – Malawi has been already approached and has

offered to assist PRIDE and also the ongoing SAPP in developing the FFS curricula and


91. The approach is expected to create better adaptation of the issues discussed/addressed and

may enable FFS members to rotate in the role of lead farmer, so that different smallholder can

specialise in different practices. Demonstration fields will enable lead farmers to show and discuss the

results of newly introduced GAPs with smallholder farmers in the Farmer Field Schools. In addition to

farmer-to-farmer learning in the Farmer Field Schools, exchange visits will be arranged (see also

component 1.1); especially to show farmers the potential of irrigated agriculture.

92. Agricultural Extension: The performance of the FFS will be guided by extension agents, who

advise on the GAPs and monitor the group’s composition and functioning. PRIDE will on preference

make use of the MOAIWD, so that Agricultural Extension Development Officers (AEDOs), with

support from Agriculture Extension Development Coordinators and District Officers, will train the lead

farmers. PRIDE will invest in order to enable the performance of the extension services: training on

agricultural practices and gender aspects thereof, provision of equipment, including ICT, field gear,

transportation costs and motorcycles (especially for female extension workers). Where the agricultural

extension service is not sufficiently staffed5 to provide full coverage; or where specialised knowledge

(e.g. irrigated agriculture, cooking stoves) is lacking in the service, PRIDE will complement the

extension services by engaging other service providers (NGOs, private sector).

93. Training and extension materials and use of ICT. PRIDE will finance the development and

distribution of high quality training and extension materials including brochures, posters, and leaflets

and the development and broadcasting of extension services by radio. Each GAP will be well-

documented. PRIDE also invests in the use of ICT in extension services enabling quick and cheaper

dissemination of information and giving agriculture a modern image, especially for youth.

94. Inventory and adaptive research – PRIDE relies on existing technology and does not invest

in basic research but in research on innovative Good Agricultural Practices. Transforming existing

GAPs into practices with demonstrable benefits would in some cases still require two actions: the

inventory of potential GAPs, based on experiences elsewhere in the region; and adaptive trials on

farmer fields to confirm the potential of the new practice. PRIDE will outsource inventories and trials,

in order to develop a sizeable portfolio of Good Agricultural Practices. Special areas of attention, in

which to define GAPs, are integrated pest management and optimisation of planting times and

irrigation turns in irrigated commands.

95. Mechanisation. The rental of agricultural machinery on a professional basis is new to Malawi.

Mechanised traction would contribute to storage and availability of soil moisture. Traction helps break

the hard soil layer that has developed just below the root zone by years of superficial soil tillage.

Breaking this layer increases infiltration of rainfall runoff and enhances the depth of the root zone.

PRIDE will purchase two tractors equipped with rippers, to primarily help develop the irrigated

commands in the two regions where PRIDE is active. Alternatively, single axle tractors with multiple

attachments could be purchased to trigger a larger scale of services. PRIDE will outsource the

operation and maintenance of this equipment to one or more experienced commercial companies that

are able to manage a rental service with experienced operators and assured maintenance. Binding

agreements will be made to ensure that smallholders in the scheme cluster areas are the primary

beneficiaries of the service, which may – on a pilot basis – be partially subsidised. Smallholder

farmers, WUAs and producer groups and others may hire the service to improve their soil

characteristics.

5 Roughly one-third of the positions in the extension services are vacant, due to GOM’s inability to fund all positions.

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Component 2.2: Market Linkages

96. Promotion of market linkages builds on the work undertaken by RLEEP. Presently, it is

estimated by NASFAM that smallholder farmers produce roughly 60% for their own nutritional needs

and 40% for sale. When part of the holding gets irrigated, these figures will change as irrigation allows

for an intensified production under near optimal circumstances.

97. PRIDE aims to link smallholder farmers to existing markets or market opportunities in order to

increase the returns from irrigated crop land and render these large investments profitable. Prior

information from the markets/dealers enables farmers to understand which products are in demand

and how to produce these according to the desired quality and at the preferred time. Doing so enables

them to get better prices and return to land and labour. Optimisation of the value chains for key

products enable a better match between production and demand, which would benefit producers,

markets and consumers. As MOAIWD has only few staff engaged in marketing, PRIDE will mobilise

service providers for the implementation of this sub-component. Selection criteria include market

experience and intelligence; staff capabilities; inclusiveness of the proposed approach (women and

youth); and adequacy of the proposed work plan.

98. A review of existing Value Chain Analyses and an assessment of market potential led to the

following preliminary selection of crops for which value chains and market linkages would be

strengthened by PRIDE:

High-value cash crops – legumes (pigeon peas, soy beans and peanuts); sunflower for the

internal market and for export; and potatoes for the internal market. These crops are processed

in Malawi; the internal demand is not fully met as yet; and for legumes there is a potential for

export. Export of peanuts can be promoted, especially when the present high levels of aflatoxin

in the product are addressed. Production of sunflower can be optimised if seed of improved

varieties is imported;

Cereals like rice and wheat – these are grown for the internal market and substitute imports.

Both crops have some potential under irrigation, but their financial feasibility throughout the

year needs to be investigated;

Fruits and vegetables – these can be cash crops but revenues depend heavily on the season

and on distance to markets as these products are perishable and the market is periodically

oversupplied;

Cassava – Starch is presently imported, while cassava is already established as a staple crop

and it can be grow on rather poor soil.

It should be noted that the above list is indicative only and will depend on the participatory planning

exercise under component 1 namely the community planning and investment agreement (CPIA), and

additional value chain analysis under component 2.

99. Farmer Business Schools. The Programme focuses on training groups of smallholder

farmers, known as Farmer Business Schools (FBS, an approach established by RLEEP), on the

basics of commercial crop production (farm budgets, cost price calculations, use of weights and

measures, quality control, grading, storage and packaging, market intelligence). Where possible,

FBSs will coincide with existing organisations (i.e. created by other programmes) but PRIDE will insist

that youth and female smallholder farmers are represented in crucial positions. The Farmer Business

Schools start by inviting private sector companies to the scheme cluster areas to gather market

information, select crops on the basis of market information, and to identify preferred trade channels.

100. Producer Groups. FBSs promote cooperation among smallholder farmers to increase their

negotiating power towards input suppliers, traders and processors. Farmers that have received the

basic training will be stimulated to form producer groups, to jointly market their produce and to benefit

from a stronger negotiating position vis-à-vis traders and processors. Producer groups are in principle

loosely organised, as doing business with traders and processors does not require the group to have

a legal entity. Before focusing on formalising their organisational status; groups need to show they

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meet their obligations: i.e. delivery of minimum volumes of stipulated quality at agreed times. Only

when it would create better market opportunities, will PRIDE support groups to obtain a legal persona,

such as Agricultural Cooperative.

101. Commodity platforms. A commodity platform represents all actors in a value chain. In a

commodity platform, the value chain actors can collaborate to assess and carry through potential

interventions in the value chain. Options to be reviewed by the platform include market access,

product development, improving productivity, and efficient transactions along the value chain. Along

the proven approach under RLEEP, a service provider will facilitate commodity platforms for products

or product groups that are relevant to smallholder farmers in the Programme. Value chain actors to be

represented in a commodity platform include smallholder farmers, producer groups, traders,

processors, banks and micro finance institutes, Ministries and specialised Government Agencies (e.g.

National Bureau of Standards), NGOs, commodity research entities, National Business Women’s

Association, Chamber of Commerce, etc. Commodity platforms already exist for roots and tubers,

legumes, dairy and rice. PRIDE supports existing platforms and to-be-created platforms with studies,

training, development of materials, and a value chain start-up facility; but require the parties

represented in the platforms to invest as well, both in the financial autonomy of their platform and in

interventions in the value chain. The sustainability of platforms depends on their members and their

pro-activeness to keep the platform alive. PRIDE support aims to help achieve full financial autonomy

for the platform in a matter of years.

102. Value Chain Analyses and Market Studies. PRIDE will commission studies to help enhance

the market access and market benefits for smallholder farmers. Market studies are undertaken to

determine the market needs, market size and the competition for a specific commodity, and thereby

confirm the choice – during the initial stages of engagement in a scheme cluster area – of which

commodities to focus on. Value Chain Analyses (VCAs) describe the production chain from field to

table, and the network of actors involved in it. VCAs map processes and structures, identify actors,

constraints (including climate risks) and analyse how benefits are distributed. Moreover, a VCA

identifies potential interventions in the value chain, which help generate benefits for all actors in the

value chain, including primary producers.

103. Value Chain Start-up facility. PRIDE includes a Value Chain start-up facility which can be

accessed by the Commodity Platforms for specific investments that help improve the value chain and

enhances especially the benefits it generates for smallholder farmers. Investments could include

development of tracking and tracing systems; definition of new product standards, training on quality

systems, etcetera. The Value Chain Start-up facility cannot be used to share in commercial risks; the

investments are aimed at enhancing the efficiency of and value creation along the value chain.

104. Irrigation technology window. Finally, PRIDE will help pilot the introduction of in-field

irrigation equipment, such as drip irrigation and sprinklers, by the private sector in Malawi. To this end,

IFAD will fund an ‘irrigation window’, under the Malawi Innovation Challenge Fund (MICF). This is a

UNDP and DFID-funded matching grant mechanism, set-up and managed by UNDP. IFAD’s co-

funding will enable the expansion of an irrigation window, whereby eligible private sector companies –

preferably a consortium of commodity wholesalers and irrigation equipment suppliers – can compete

for funding on the basis of submitted business cases. The idea would be for wholesalers to pre-invest

in modernisation of smallholder irrigation in one or more blocks of an irrigation scheme, while the

equipment supplier installs and helps operate precision irrigation equipment. Such equipment enables

smallholder production to more reliably deliver sizeable quantities of high quality and quantities at a

pre-defined time. An allocation of up to USD 2.5 million has been earmarked from PRIDE to support a

specific Irrigation Window for linking private sector commodity wholesalers to irrigation equipment

suppliers, to enhance the former’s sourcing from smallholder farmers. The Irrigation Window has

already received catalytic funding from DFID of USD 0.5 million to be launched during 2015.

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Component 2.3: Mainstreaming Nutrition

105. Child stunting and anaemia are endemic in Malawi and their reduction has so far – despite

macro-economic progress – been slow. PRIDE intends to contribute to scaling-up nutrition (SUN) by a

combination of actions. The aim of these efforts is to reduce child wasting by 20% at the end of the

Programme period.

106. Dietary diversity survey. Stunting is the most relevant nutrition indicator for the Programme,

but other relevant indicators will be tracked as well, e.g.: body mass index (BMI) of women of

reproductive age (15-49); Women Dietary Diversity Score (WDDS) and time spent on accessing food,

fuel. WDDS is a proxy indicator for micronutrient adequacy and also a means of measuring impact on

dietary diversity. PRIDE will collaborate with FAO to conduct the dietary diversity survey utilizing the

FAO guidelines on dietary diversity scores. Secondary data on nutrition will be derived from a/o as the

Malawi Demographic Health Survey (MDHS), Multi-cluster Indicator Survey and National

Micronutrient Survey.

107. Scaling Up Nutrition (SUN).The PRIDE approach to nutrition is aligned to the approach that is

embraced by the GOM and by other development partners. GOM has established multi-sectoral

coordination of nutrition programme implementation at national, district, village levels and is planning

to deploy nutritionists in the local councils to improve coordination, monitoring and reporting. The

national Nutrition Education and Communication Strategy (NECS) aims to strengthen and harmonize

nutrition messages and practices from national to grassroots level. In the scheme cluster areas,

PRIDE will engage Food and Nutrition Officers of the Department of Agricultural Extension Services.

At national level, PRIDE will associate with the UN Malawi Nutrition Network and other key partners.

108. Extension services. In principle, extension and training on nutrition will be carried out by the

agricultural extension system, though PRIDE may engage other service providers to complement the

capacity of the government system. Services will be provided to the target group through lead farmers

through established farmer groups, care groups and village associations. Lead farmers are trained by

AEDOs who in turn are trained and supervised by agricultural extension development coordinators

(AEDCs) at EPA level. These AEDCs are coached by Food and Nutrition officers and other relevant

specialists at district level. The nutrition focus of agricultural extension will be made tangible in three

ways:

By integrating a nutrition perspective in all GAPs promoted and documented by the Programme

(see component 2.1);

By promoting diversified and improved nutritional production and consumption (integrated

homestead food production);

By supporting the introduction of improved cooking stoves, combined with nutrition education.

109. Integrated homestead food production (IHFP) is to facilitate adequate food consumption at

household level. IHFP is an approach to improve diverse food access (primarily proteins, vitamins and

minerals) and to share nutrition information. Nutrition education will encourage adequate

consumption. Capacity will be developed by supporting training of trainers who can roll-out the toolkit

on IHFP to the villages. PRIDE will collaborate with FAO on this activity.

110. Improved cooking stoves. Rural communities cook over open fire, using locally available

firewood. This practice is detrimental to the already scant forest cover; has bad effects on health due

to smoke combined with lack of ventilation; and requires mainly women and children to spend scarce

time on fuelwood collection. Improved cooking stoves form a climate-smart answer to these problems.

Improved cooking stoves increase the efficiency of fuel wood use by up to 60% compared to open

fires, and thereby reduce the need for women and girls to gather and carry heavy loads of firewood

over long distances. Cleaner, more efficient cooking stoves reduce exposure to smoke. The promotion

of improved cooking stoves forms a generic measure for sustainable land management.

111. From a nutrition perspective, time saved in fuel collection and cooking provides an opportunity

to invest time in the process of cooking itself. During the session that promote the improved cooking

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stoves and during subsequent sessions on maintenance; training will be imparted on nutrition and

food preparation. Women form the target group so female extension workers are required.

112. PRIDE’s promotion of improved cooking stoves aims to ensure that a private sector able to

produce and market the materials and support services for improved cooking stoves emerges.

Service providers involved in the promotion of improved cooking stoves need to demonstrate how

they intend to establish improved cooking stoves as a regular product in the market. The possible

availability of carbon credits for improved cooking stoves – reflecting their impact on the reduced use

of fuel wood – may be considered to improve the business case for local production and supply.

D. Lessons learned and adherence to IFAD policies

113. Overall, the performance of the country programme has been moderately satisfactory, but

plagued by slow implementation related to capacity shortfalls in government institutions. Other donor

programmes add to the pressure on capacity of all ministries. As the size of the IFAD portfolio grows,

these limitations will become more important and necessitate flexibility in terms of outsourcing

activities and a high level of implementation support. The experience in IRLADP with a stand-alone

unit coordinating the project on behalf of the Department of Irrigation offers an interesting alternative

for programme management.

114. Within the IFAD portfolio, a number of lessons have been learned and their design implications

are summarised. The most relevant lessons for PRIDE have been summarized below, while appendix

3 presents a full overview of the learning from previous IFAD interventions.

Table 5: Lessons learned

Lesson Learned Design Implications

A dedicated full-time coordination

team is required immediately on

start-up for efficient and timely

implementation of activities.

The Programme will be implemented by a stand-alone Programme

Coordination Office (PCO) established under the lead Ministry and

staffed by dedicated and highly qualified personnel with designated

authority. PCO staff are either seconded from government or

recruited from the labour market. Secondment and recruitment of

key PCO staff requires prior consent from IFAD.

Land tenure for all smallholder

farmers selected to take part in

irrigation is to be secured prior to

implementing the works.

Prior to investment GoM / NGO, documented land tenure and plot

allocation agreements will be prepared.

Land access should be secured

throughout the year for all

beneficiaries (male, women and

youth) of a scheme to enable up to

three irrigated crops per year.

Establish a WUA, whose members are all intended scheme

beneficiaries, and confirm that it has documented long-term land

leases or customary land rights, which are subsequently assigned

transparently and equitably to its members.

Water rights need to be allocated to

each WUA and enforced up and

downstream.

Support WUAs to obtain legal water rights from regulatory

authorities prior to implementation.

Water available at the end of the dry

season may not be enough for the

whole command area.

Obtain data on dry season river flows and ensure that the WUA

adopts internal rules to give equitable access to land and water

resources in the dry season.

Many pumped irrigation systems

have been abandoned by

smallholder farmers.

Give priority to gravity-fed schemes. Introduce advanced (and

water-efficient technologies) only where recurrent costs are easily

recovered from ascertained incremental income generated by

scheme and the market.

GOM is not in a position to

contribute substantially to scheme

O&M.

The irrigation scheme needs to be technically, economically and

environmentally sound, and are to be operated and maintained by a

WUA which is able to generate funds for O&M from their

membership. Linkage to markets is essential to allow the WUA to

collect sufficient fees.

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Lesson Learned Design Implications

Smallholder farmers require support

to enable them to respond to market

demands and to select high value

crops that give optimum returns.

Make use of RLEEP experience and capacities to support

smallholder farmers on value chains, market linkages and

commodity selection.

Unit costs to develop and construct

irrigation schemes are medium in

the range of USD 8,000 – 10,000/ha.

A return on investment is only possible if the irrigated command

areas are used for the production of cash crops with a viable

market.

Design schemes in response to

demands of the beneficiaries and

bearing in mind a realistic

beneficiary contribution in both cash

and kind, during construction and for

O&M.

Involve WUAs in planning, design and construction of schemes –

including the GOM/NGO decision – and build their capacity with

respect to scheme operation, including cost recovery; and

development of a business plan.

Soil and water conservation

measures in the upstream

catchment areas help sustain

irrigation infrastructure.

Address critical upstream concerns during planning and design; and

produce ESMPs with budgets for implementation.

115. PRIDE will be implemented in compliance with IFAD’s Policy on Improving Access to Land and

Tenure Security, the Voluntary Guidelines on the Responsible Governance of Tenure of Land,

Fisheries and Forests and the Framework and Guidelines for Land Policy in Africa. Before supporting

any intervention that might affect the land access and use rights of communities, PRIDE will ensure

that their free, prior and informed consent has been solicited through inclusive consultations based on

full disclosure of the intent and scope of the activities planned and their implications. PRIDE is

compliant with IFAD’s Natural Resources Management Policy and Climate Change Strategy. Climate

change adaptation measures are integrated into Programme activities to address climate risks and

the potential multiplication of effects, such as damage to landscapes and infrastructure. See the

safeguard documents listed in appendix 12 for a detailed discussion on compliance.

III. Programme implementation

A. Approach

116. PRIDE aims to enhance resilience of rural communities to climate-, food security and economic

shocks. PRIDE does so by mobilising partners and resources for communities in scheme cluster

areas; so that these communities – with the support of the partners mobilised by PRIDE – can

harness natural resources for agriculture; build competence in production and profit from better

market linkages. The approach applied in PRIDE comprises a phased development process –

identification, preparation, implementation and review – which is kept on track by project management

and by and mechanisms to safeguard positive environmental and social outcomes.

117. GoM has limited capacity to manage programmes of the size and magnitude of PRIDE. The

progress of Programme implementation by the Department of Irrigation (DoI) would be hampered by

its limited implementation readiness. To redress this fact, a stand-alone unit will be set-up and

mandated under the management purview of DoI, to coordinate project implementation. In this way,

mobilisation of partners and resources can take place swiftly and under a full-time dedicated

oversight. In doing so, PRIDE follows the model used in IRLADP.

Development process

118. Identification. The engagement of PRIDE with the communities goes through several stages,

with results and responsibilities evolving at each stage. Scheme cluster area identification has been

part of the design of PRIDE and reflects the priority setting in the Government’s Irrigation Master Plan

and Investment Framework (IMPIF, see section II.A). During the development of the IMPIF portfolio,

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interactions with scheme beneficiaries and concerned communities have – in order to not raise

expectations – been kept at a minimum. PRIDE will have to significantly invest in interactions with

communities in order to increase the commitment to the proposed developments.

119. Preparation. The first interaction between PRIDE and the communities will take place during

the preparation stage. This stage aims to define PRIDE interventions in the scheme cluster area. The

interventions combine service providers, community representatives and agreed actions. The

interventions are documented in investment agreements. Each agreement specifies which resources

and actors are mobilised (or assisted to mobilise) by PRIDE, and which groups or organisations will

contribute on behalf of the community. PRIDE will help mobilise concerned government agencies at

District level, and will outsource services that presently cannot be supplied by the government

agencies. The communities will initially be represented by their leadership and their existing structures

at village level in a ‘combined village committee’. This committee will be asked to select beneficiaries

for planned activities and to assist these to form groups or organisations that are responsible (in case

of complex activities such as irrigation scheme development) to contribute to the further preparation of

an activity; and (for well-prepared activities) to contribute to the subsequent implementation. The table

gives an overview of the activities that are to be prepared.

Table 6: Entities and activities during preparation

Service agencies Community

representatives

Activities

District Executive

Committee

Multi-disciplinary

CPIA teams

Traditional

Authorities

Village

Development

Councils

Combined Village

Committee

Confirmation by traditional authorities and village development

committees to support development of irrigation, soil & water

conservation, good agricultural practices and market linkages

Selection of community representatives who help implement

the activity (WUA formation committee, conservation groups,

lead farmers)

Keeping general oversight of progress

Irrigation staff (ISD

and District)

Design

Consultants

Social organisers

District Land Office

WUA Formation

committee

Traditional

authorities

Land right holders

Land and Water Use agreement (draft) formulation

Irrigation staff (ISD

and District)

Design

Consultants

Social organisers

WUA Formation

committee

WUA beneficiaries

Water Users’ Association Constitution and Bye Laws (draft)

formulation

Scheme Implementation Agreement (draft) formulation

120. Implementation. Once preparations are completed and agreements signed; implementation

will follow. PRIDE will help mobilise concerned agencies and outsource specialised tasks to others.

The communities will form groups for each activity under implementation. The table gives an overview

of the different entities that interact in the course of the programme, and of the activities that they will

implement.

Table 7: Entities and activities during implementation


representatives

Activities

Irrigation staff (ISD and District)

Design and supervision consultants

Social organisers

Contractors

WUA including sub-

committees

Construction, hand-over

and management of

irrigation scheme

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representatives

Activities

MOAIWD extension staff

Specialised service providers

Other agencies locally represented

Lead farmers and farmer

field schools

Introduction and replication

of good agricultural

practices on irrigated and

rain-fed lands

MOAIWD extension staff

Specialised service providers

Other agencies locally represented

Traders and wholesalers

Commodity platforms

Lead farmers and farmer

business schools

Producer groups

Establishment and

improvement of market

linkages

Irrigation staff (ISD and District)

Design and supervision consultants

Social organisers

Contractors

Conservation groups Establishment and

exploitation of erosion

protection areas

121. Joint Review is a recurrent ‘stage’. For each major activity, there will be an annual review. This

could comprise an inspection for infrastructure, or a participatory assessment for other activities.

Results will be reported not only to the group or organisation directly concerned but also to the

community representatives involved during the preparation phase. In this manner, the achievements

and performance of groups and organisations will continue to be reviewed by the community from

which they were formed.

Table 8: Entities and activities during joint review

Service agencies Community representatives Activities

District Executive Committee

Review teams

Traditional Authorities

Village Development Councils,

Combined Village Committee,

Activity-related groups

Periodic review and

adjustment of agreed

actions

Environmental and Social Safeguard Mechanisms

122. Environmental and social management framework. Based on IFAD’s 2015 Social,

Environmental and Climate Assessment Procedures (SECAP), PRIDE has been classified in

environmental assessment category A, with a ‘moderate’ classification for its climate risks. Category A

is reserved for programmes that may have significant adverse environmental and/or social

implications that: (i) are sensitive, irreversible or unprecedented; (ii) affect an area broader than the

sites or facilities subject to physical interventions; and (iii) are not readily remedied by preventive

actions or mitigation measures.

PRIDE’s category A classification is based on the notion that it promotes irreversible land use

changes by development of irrigated areas, including land levelling and new agricultural land;

and that it will alter the immediate hydrology of the intervention areas. Resettlement may be

required, especially for those scheme cluster areas where construction of a dam and reservoir

is part of the design.

The Programme faces a moderate climate change risk, as the interventions are expected to be

vulnerable to floods and droughts that are likely to increase in frequency and which may impact

agriculture production, irrigation infrastructures, and ultimately the farmer communities’

livelihoods. Information available on climate risk for Malawi informed the design of PRIDE and

adaptation measures have been incorporated to be financed mainly by the Adaptation for

Smallholder Agriculture Programme (ASAP).

123. The Programme’s Life File (see appendix 13) includes the Social, Environmental and Climate

Change Assessment Review Note (SECAP-RN), the Programmes Environmental and Social

Management Framework and the Resettlement Framework. This section reflects the guidance

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provided by those documents. The figure overleaf shows the interrelatedness of the generic policies,

the safeguards framework for the overall PRIDE programme and the procedures in force for the

individual schemes and scheme cluster areas.

Figure 4: Environmental and social safeguards framework and procedures

124. The exact intervention in the 15 scheme cluster areas will only be known during Programme

implementation; but for most – if not all – scheme cluster areas it may be required to develop a full

Economic and Social Impact Assessment (ESIA) and subsequent management plans in line with

IFAD’s social, environmental and climate assessment procedures as well as with the national

regulations in Malawi. To determine the need for a full ESIA and related management plans, such as a

Resettlement Action Plan, screening and scoping will be carried-out during the preparation stage. The

screening note will provide guidance on the likely environmental and social risks and will enable the

Environmental Affairs Department to confirm whether an ESIA is required, and whether and what

Environmental and Social Management Plans are needed (e.g. pest management, resettlement, dam

safety, etc.). For schemes not having category A social and environmental impacts, the screening may

be directly followed by the formulation of an Environmental and Social Management Plan. Detailed

guidance on screening, ESIA, ESMP and the recurrent annual audit of the environmental

management is included in the ESMF and RAF included in the Programme Life File (appendix 13).

The costs for screening, ESIA, ESMPs (including RAP) and annual audits are factored into the

programme budget.

125. Environmental and Social Impacts Assessments and related management plans will be

prepared for those schemes where the screening exercise indicated this need. The outcomes will be

reviewed by the scheme cluster area communities, and be submitted for review and approval to the

Environmental Affairs Department. The management plans will be publically disclosed and subject for

consultation with the communities. Measures from the management plans will be fully integrated in

the schemes. The exact measures will depend on the location-specific situation, but the following

impacts and mitigations are likely to be associated with some of the larger schemes, including those

involving dams:

The risk of excess withdrawal of water from a river would impact on downstream water users

and on maintaining an adequate habitat for aquatic species. The recent water resources

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assessment6 analyses present pressures on Malawi’s catchments and enables the MOAIWD

wing responsible for licensing water withdrawals to curb excess water use;

Construction of canals and head works – and the impoundment of water in reservoirs – will

affect existing rain-fed land resources and possibly homesteads. Following the IRLADP

experience with land and water agreements, loss of homestead and land access will be

compensated by giving project affected people a preferential share in the irrigated command

area. A governance structure is needed to ensure compensation is addressed and grievances

will be heard (see III.A);

New physical infrastructure may be vulnerable if not well-sited or not designed bearing in mind

present and future climate impacts. New infrastructure may be damaged and the benefit flow

may stop. This requires good engineering as well as climate proofing infrastructure. Lessons

need to be learned from the EU-funded project on infrastructure designs that started recently;

Construction works itself may form a start for land degradation processes. Contract stipulations

will be drafted that enforce due diligence in site development and use of borrow-pits. Some

training will be available to orient contractors on sound environmental management.

126. The development of measures to mitigate social and environmental impacts and the

implementation thereof, will be reported upon annually, by a dedicated officer in the PCO; and the

report – as well as on-the-ground reality – will be subject to an independent annual audit. Both the

PCO report and the audit will be submitted to IFAD and to the Programme Steering Committee.

127. Resettlement and compensation. Where resettlement or economic displacement is

envisaged, SECAP requires that the principles of ’do no harm’ and ‘free, prior and informed consent’

(FPIC) are adhered to at all times and for all beneficiaries for any intervention that might affect the

land access and user rights of communities. As per the practice introduced by IRLADP, the

detrimental impacts on project affected people will be compensated through the degree of individual

beneficiary contribution to scheme construction and through the allocation of rights to cultivate

irrigated land. Thus, right-holders on the original land will receive a larger allocation, as will people

who have lost land or property due to canal alignments, headwork’s, dams or reservoirs. Crop loss

during construction would be compensated by a reduced beneficiary labour contribution to scheme

construction. The Land and Water Agreement is prepared between the Water Users’ Association and

the communities leadership, with due involvement from the department of land, and support in terms

of survey works and mapping by the Programme.

128. People who feel that they are negatively affected while their claim is not (adequately)

addressed should have resort to a grievance mechanism. A grievance mechanism is included in the

management plan for each scheme, and involves a three-month period during which grievances can

be submitted to a 3-member grievance board set-up by the combined village committee (1 member),

the Water Users’ Association (1 member) and the District (1 member). The Land and Water

Agreement can only be finalised after the grievance board confirms settlement of all grievances.

129. Disclosure of scheme information. In compliance with IFAD’s environmental procedures and

Malawi's ESIA regulations, before a scheme is approved, the applicable documents (ESIA, ESMP

and/or RAP and associated management plans) must be made available for public review at a place

accessible to local people (e.g. at a local government office), and in a form, manner, and language

they can understand. It is recommended that the ESMPs and RAPs be disclosed in the same location

that the community development plans are made public to ensure that there is wide access to the

documents at least one month before the expected date of starting the works.

B. Organizational framework

130. PRIDE will mobilise and outsource services that work with the communities and their

representatives. The PRIDE Project Coordination Office (PCO) therefore is not directly involved in

6 Government of the Republic of Malawi, Ministry of Irrigation and Water Development, Second National Water

Development Project (NWDP II), Water Resources Investment Strategy, Component 1 – Water Resources Assessment; draft report, 2015.

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implementation; but plays its role at a higher level: It ensures that adequate services are mobilised;

either by enabling government agencies, such as the District irrigation, agriculture and land resources

staff to intensify service delivery to the communities in the scheme cluster areas; or by engaging

(specialised) services, such as design and supervision engineers, contractors, crop extension

services and market partners. This arrangements reflects the positive lessons learned from IRLADP

and enables the Programme to set a brisk pace of implementation.

131. Programme Management. The Programme will be implemented by a stand-alone Programme

Coordination Office (PCO) established under the lead Ministry and staffed by dedicated and highly

qualified personnel who are from government or recruited from the labour market. Recruitment of key

PCO staff requires prior consent from IFAD. The PCO will include inter alia a senior Programme

Director, a Procurement specialist, a Financial Management specialist, a Water Users’ Associations

specialist, an Environmental Coordinator, a Gender and Targeting Specialist, an Irrigation Engineer,

an Agriculture and Value Chain Specialist and a Planning, Monitoring and Evaluation specialist. The

latter will be charged with Knowledge Management as well. Given the spread to the northern and

southern regions, there will be two Programme facilitation offices, staffed by a Coordinator for two

ISDs. Appendix 5 presents the full staff list. Figure 5 shows that the PCO functions under a single

command, with the regional offices tasked to facilitate the functioning of the technical coordinators of

the PCO.

Figure 5: Structure of the Programme Coordination Office

132. The PCO will mobilise agencies – either by enabling existing services or outsourcing required

services – to work with the communities in the scheme cluster areas. The work of the local agencies

of MOAIWD (irrigation, extension) and the Department of Land will be facilitated by investments in

transport, communication and service delivery. Where these agencies lack adequate numbers of staff

or miss the prerequisite competence, the PCO will engage other service providers, such as NGOs

working on agricultural development and specialised engineering services.

133. The PCO is the management team for the PRIDE programme. Good interplay is prerequisite for

the success of PRIDE, as all PRIDE primary outputs and processes cut across the functional

specialisation of the PCO members. For the development of the irrigation schemes, for example, the

WUA Specialist is responsible for defining and adhering to the requisite community decision-making

procedures and for WUA capacity building, whereas the Environment Coordinator helps shape

consultation and prior consent on land consolidation, environmental assessment and mitigation. Both

are informed by the technical specialist (in this example the irrigation engineer) on the steps in the

engineering process, from detailed design to hand-over and prepares a planning per scheme cluster

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area based on all these procedures. The irrigation engineer is responsible to define all technical

targets (irrigated area, benefitted farmers, irrigator capacities, beneficiary contributions, agency and

programme contributions, etc.) and to define the responsibilities of agencies, service providers and

water users. The Procurement Officer prepares, based on the inputs given, terms and conditions for

outsourcing and for agency involvement; and translates this into legally binding agreements. The

procedural planning by the WUA specialist, the targets defined by the technical specialist and the

conditions set by the procurement officer, along with associated costs are recorded and reviewed by

the Planning, Monitoring and Evaluation Officer. He/she keeps abreast of progress and issues

warnings within the PCO if progress is behind or below target. He/she also keeps an active eye on the

risks associated with the programme. The Programme Director has the overall overview, is

responsible for all decisions (though at times delegated to his/her staff) and maintains liaison with the

steering committee, parent ministries and representatives of IFAD. Similar descriptions can be given

for the construction of soil- and water conservation infrastructure, for the establishment of good

agricultural practices and for the development of market linkages.

134. The following table gives a general description of the roles of the PCO professional staff and

how their duties combine for each process and for each outcome of PRIDE.

Table 9: PCO staff roles and duties (generic)

Process steps /

Outputs

Procedural

specialists

(WUA specialist.

Environment

Coordinator)

Technical

specialists

(irrigation,

crops and

value chains)

Procurement

Officer

PME

specialist

Programme

Director

Process 1:

Preparation

Define and

maintain process

steps,

stakeholders

involvement and

time frame

Define and

supervise

outputs required

from service

providers

(outsourced and

agencies)

Define contract

conditions for

outsourced

services and select

the required

procurement

method;

Define modalities

and terms of

agreement for

enabling of agency

services

Review planned

progress in

terms of time,

funds and

outputs; Signal

delays and

monitor

programme risks

Ensure

coherency in

management;

Take and

communicate

key decisions

Process 2:

Implementation

Process 3: Review

Outcome 1:

Infrastructure

Outcome 2: Good

Agricultural

Practices

Outcome 3: Market

linkages

135. The WUA specialist will be assisted by a Gender and Targeting specialist, who is to secure that

mobilised agencies deliver their services effectively to the intended target group, with preference for

the prioritised categories of food-deficit poor, women and youth. An Environmental Coordinator is

added to the PCO team to ensure environmental and social due diligence through-out all stages of

programme implementation.

136. Coordination (scheme cluster areas). PRIDE will coordinate its entry in an area with existing

leadership (chiefs) and with existing structures at village level. The latter are organised in Village

Development Committees. For ease of organisation PRIDE’s contribution across a scheme cluster

area, the chiefs and VDCs will be asked to convene a combined village committee, that will provide

oversight for the activities that PRIDE and the communities engage in. The combined village

committee plays a key role at the initiation stage and in reviewing programme progress. Detailed

preparations (notably for land consolidation and irrigation scheme preparation) will be delegated to a

formation committee for the Water Users’ Association. Implementation of more straightforward

activities (soil- and water conservation, good agricultural practices and market linkages) will be

handed over to beneficiary groups and lead farmers. The specialised services mobilised by the

PRIDE PCO will engage directly with these beneficiary groups.

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137. There is a possible imbalance between the combined village committee and the WUA formation

committee – and later on the executive committee – of the Water Users’ Association. The former is

attributed a governing role, whereas the latter can – due to its large membership and the investments

associated with it – practically overrule or ignore the combined village committee. At the same time,

dependencies exist as well: the combined village committee is better placed to coordinate land issues

with the chiefs, and it is more closely associated with the normal port of call for government services.

The WUA, in its turn, is a vessel for making use of the new opportunities associated with the

development of irrigated agriculture. If given sufficient leeway, the WUA – and the irrigation system it

manages – can be a game changer in local development.

138. The interplay between the local groups, the WUA and the combined village committee is an

important factor for the success of the PRIDE interventions. The Programme Implementation Manual

(PIM) will elaborate the procedures and routines to be established for a constructive interplay.

139. Coordination (regional). For reasons of efficiency, PRIDE scheme cluster areas are

concentrated in a northern and a southern hub. PRIDE will rely on – and where need be – facilitate

the services of agencies represented here; and may engage additional service providers if gaps are

observed. This requires a close coordination with the services already on the ground: notably the

regional levels of MOAIWD, the Ministry of Land Resources and District coordination structures.

140. PRIDE will associate with the District Executive Committee and their Area Development

Committees. PRIDE regional coordinators will be charged with the responsibility for the exchange of

information at this level; and for noting issues emerging. The bringing in of additional service providers

will be discussed at this level, in order to define well their scope of intervention. The involvement of

PRIDE in the existing coordination structures at regional level will be elaborated in the PIM.

141. Coordination (national). National coordination will be ensured through the Agriculture Sector

Wide Approach (ASWAp) that is coordinated by MOAIWD. This mechanism precludes overlaps in

programme preparation, implementation and funding, and aims for a regional balance in the activities

of the Ministry. The PCO of PRIDE will endeavour to inform the ASWAP about programme activities to

ensure full alignment with government policies and to report efficiently on results and lessons learnt.

However, PCO shall be accountable to the Programme Steering Committee only, which will provide

the oversight of PRIDE (see next paragraph). In addition; close coordination will take place with the

other programmes in IFAD’s portfolio. Both SAPP and RLEEP have tested approaches for good

agricultural practices and market linkages respectively, and PRIDE will fall back on their experience

and contacts as and when possible. As the overlap between PRIDE, RLEEP and ASAP is limited in

time and regional coverage, no cross-funding is foreseen at design, but good coordination will always

ensure an efficient use of resources. Specifically, PRIDE will use tested GAPS and will work with

commodity platforms already established.

142. Programme Oversight. The Ministry of Finance, Economic Planning and Development will

formally represent the GOM on matters pertaining to the Programme. The Ministry of Agriculture,

Irrigation and Water Development will be the lead Ministry for the Programme. Day-to-day oversight

will be vested in the Department of Irrigation, while a Technical Advisory Team will be established

representing departments concerned with the project implementation, including Land Resources,

Extension, Research (under MOAIWD), as well as the Department of Land (Ministry of Lands,

Housing and Urban Development), the Environmental Affairs Department (Ministry of Natural

Resources, Environment and Mining); the Debt and Aid Department of the Ministry of Finance,

Economic Planning and Development; and others as needed. Strategic oversight will be provided by a

Programme Steering Committee (PSC) comprising senior representatives of concerned Ministries,

under the chairmanship of the PS (Irrigation & Water Development) of the Ministry of Agriculture,

Irrigation and Water Development. From IFAD-side half-yearly supervision missions will take place;

and a provision will be made for a limited number of implementation support missions.

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C. Planning, M&E, learning and knowledge management

143. This section describes the primary scope of the PCO’s Planning, Monitoring and Evaluation

Officer. He/she will have to document the agreements and plans that are formulated in the course of

PRIDE implementation; and will have to keep the PCO team informed of progress at the level of

actions, effects and impacts. He/she will have to ensure that lessons are drawn from implementation;

and applied in the subsequent period as well as in the smallholder agriculture sector as a whole.

Planning

144. The overall budget combined with the Logical Framework (see table at end of Executive

Summary) form the basic tools for planning. Recurrent updating of both – based on information

obtained from monitoring and planning – is required to confirm that progress is on target and to

ensure that means meet ends. This means that the PCO finance officer and the PME specialist will

work closely together to keep the PCO’s plans up to date.

145. In addition, per scheme cluster area, the work processes will be charted; both in terms of

required activities, as well as in terms of time. These timelines form a starting point for annual

planning, as they indicate more realistically what can be achieved in a year.

146. Plans need to be translated into resource allocations and to this end, annual work plans and

budgets (AWPB) are prepared. The AWPB allows the GOM to include adequate resources in its

budget and enable IFAD – together with good financial management – to release budgets in a timely

manner. PCO staff will be trained in the preparation of AWPBs.

Monitoring and evaluation

147. The act of monitoring and evaluating by the PCO comprises the collection, interpretation and

combination of information and data into clear-cut conclusions on the progress and likely success of

the programme. The following paragraphs will discuss the various information carriers that are

employed by the PCO.

148. Management information system. The Logical Framework and the Annual Work Plans and

Budgets define activities, results, targets and progress indicators; as well as risks. The management

information system (MIS) collects key data on the status of Logical Framework and AWPB indicators

throughout the duration of the Programme, and processes this into tabular and visual information. The

MIS answers the questions (i) whether PRIDE activities progress as targeted; and (ii) whether the

PRIDE outputs can be attained within the available time and resources. The MIS uses standard

spreadsheet programming or dedicated software to collect and process data from various information

sources in PRIDE. It integrates financial data in order to gauge critical unit costs, and in order to

predict resource depletion and the likely liquidity requirements.

149. Monitoring of risks is an integrated part of the MIS. To this end, indicators will be developed that

gauge whether the assumptions on which the programme is based, hold. The risks are discussed in

section III.F and derive from the Programme’s Logical Framework.

150. Results and Impact Management System. The most dynamic part of the MIS relates to

activities and outputs; but secondary data on impacts, effects and outcomes will be collected using

IFAD’s Results and Impact Management System (RIMS). The PCO will compile a RIMS report

annually and submit this to IFAD (normally scheduled for the end of March). The RIMS employs three

levels of indicators: Outputs, outcomes and impacts. Relevant indicators have been included in the

Programme’s Logical Framework. First-level RIMS indicators (outputs) would derive from the MIS and

are produced at least annually. When second-level results (outcomes) become available, these will be

reported with the first-level RIMS results. Third-level RIMS results (impact) will be reported twice; once

at midterm and once at completion.

151. Benchmarks, mid-term and completion surveys. In order to capture information on PRIDE

effects and impacts, separate studies are undertaken to gauge how successful PRIDE is vis-à-vis its

overall ambitions. To this end, studies are undertaken to assess the situation of the target group at

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begin, midway (year 3) and end of the programme period. Outcomes of these studies will inform the

RIMS. The baseline studies and follow-up surveys combine collection of basic demographic and

socio-economic data with application of the Multidimensional Poverty Assessment Tool (MPAT), in

order to understand and gauge impacts on poverty reduction. The Women Empowerment in

Agriculture Index (WEAI) will also form part of the baseline and follow-up surveys in each scheme

cluster area. The WEAI helps track changes in women’s empowerment levels as a direct or indirect

result of an intervention.

152. Annual Audit (social and environmental safeguards). As part of the procedures for

environmental and social due diligence, an annual audit will be conducted of the progress,

achievements and issues with respect to safeguards. The audit procedures are included in the

relevant guidance documents (see appendix 13).

153. Studies. Good monitoring and evaluation requires understanding how an intervention

translates into an impact on poverty, nutrition and resilience. To this end, PRIDE has funds to

undertake in-depth studies into the mechanisms that are expected to yield impact on the target group.

These studies include – but are not limited to:

Tracer studies on land tenure – as explained in appendix 3 the access that smallholder farmers

have to land resources is in essence insecure. The PRIDE intervention aims to enhance the

reliability of and participation in tenure arrangements for irrigated lands. In this, use is made of

the experience of IRLADP. As the access to land is of prime importance to how benefits of the

Programme are distributed, recurrent studies into tenancy arrangements their dynamism and

their influence on crop husbandry will be carried out on all PRIDE schemes; as well as on

selected completed schemes from IRLADP. The studies will be designed and reviewed in close

cooperation with the Global Land Tools Network through their partnership with IFAD under the

regional ‘Tenure security learning initiative’. This will help monitor the Land and Water

Agreements drawn up under PRIDE and help monitor how land access develops over the years

and how – if at all – it affects agricultural practices, such as conservation agriculture and use of

fertiliser.

Thematic studies, especially into the dynamics evolving in the irrigated command areas. What

are critical bottlenecks to the irrigated agriculture; what are solutions developed by the WUAs

and irrigating farmers to issues such as seasonal water shortage, rotation, block cultivation,

cost recovery etcetera.

154. Reviews and participatory assessments. There is only so much that can be captured by pre-

defined indicators and standardised data formats. To help make the information for planning,

monitoring and evaluation ‘rich’, reviews and participatory assessments are part of the PRIDE M&E

repertoire. Annual reviews per scheme cluster area will gauge achievements against plans and

agreements. Reviews will cover the status of new infrastructure, the arrangements for operation and

maintenance, the dissemination and utility of newly introduced good agricultural practices and the

development of market linkages. Findings will be presented to the related actors, and their views will

be sought on the outcomes, and on the adequacy of the approaches followed. Participatory

assessments can take place at all levels of programme implementation (i.e. activity, scheme cluster

area, regional and national. Here the floor will be given to beneficiaries, partners, PCO staff or a

combination thereof to review (aspects of) PRIDE implementation. Reviews and participatory

assessments serve a dual purpose: they help collect experiences and views that enrich the

management information (e.g. status of infrastructure after hand-over; beneficiary satisfaction) and

they initiate a learning exercise that aims at re-defining Programme practices.

155. Reporting. Monitoring and evaluation is a void exercise if not reported upon. Monitoring and

evaluation outcomes and revised plans will be reported upon in semi-annual progress reports, which

are produced within a week from the completion of the period under review. In addition to narrative,

tabular and graphic progress information, the progress reports contain a revised planning for the

upcoming six months and a section where the PCO recommends major adjustments in the

programme to address any bottlenecks experienced, or opportunities observed. These

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recommendations will serve to guide the agenda of the Project Steering Committee and will provide a

point of reference for the semi-annual supervision missions.

Learning and knowledge management

156. PRIDE aspires to be relevant for the smallholder agriculture sector as a whole. This determines

that lessons from experience have to be drawn and shared with stakeholders in the sector as a whole.

PRIDE is not aimed at the development of new policies and strategies at the national level, but aims

to inform this level of relevant experiences and good practices. The contribution of PRIDE to the wider

policy debate in the smallholder agriculture sector comes in the form of factsheets, which document

lessons learned.

157. Factsheets find their origin in the monitoring and evaluation system described above, and

especially in the reviews and participatory assessments. Here, important lessons are identified and a

first version of the lessons is described. PCO staff and hired hands where needed, elaborate the

lesson learned in a draft factsheet. This is a concise description, with reference to additional

information and informants. The PCO will develop a standard format for the factsheets.

158. Draft factsheets are reviewed and improved upon through small expert workshops with

concerned stakeholders. The idea is to confirm the relevance of the lesson learned, to improve upon

the description and to contemplate the implications of such a lesson for the policy framework for

smallholder agriculture. Factsheets that do not create a stir, will not be published and disseminated.

159. Once factsheets are finalised, they will be disseminated using the websites of the Programme

and of the MOAIWD and, where possible, websites of relevant institutions, such as research

agencies. Moreover, the factsheets will be presented in national workshop on key programme themes

(climate-smart agriculture, value chains, land tenure, smallholder irrigation).

D. Financial management, procurement and governance

160. A financial management assessment that was carried out as part of design is included in

appendix 7. The inherent financing risk is considered to be at medium level. Transparency

International’s corruption perception index scored Malawi at 34, 37 and back to 33% in 2012, 2013

and 2014 respectively. IFAD’s Rural Sector Performance score regarding accountability matters and

corruption in rural areas scored Malawi at 3.75 (in 2014) which translates into a medium risk. Recent

trends however indicate an increased risk. Entity level financial management was assessed on the

operations of SAPP and IRLADP. Overall, the assessment concludes that the proposed financial

management arrangements for PRIDE to be at medium risk. The two projects analysed provided the

required inputs to suggest measures (see appendix 7 ) including operations of the Government

Integrated Financial Management System (IFMS), use of dedicated project accounting software,

specifically recruited programme finance staff and clear banking arrangements. The set-up of

accounts and their management through an off the shelf accounting software such as TOMPRO is

considered to be minimum standard. Accounting will be linked to the M&E system, requiring that

TORs of the Financial Management Team and the M&E expert be linked on these aspects. The

proposed arrangement will be managed by a dedicated PCO under the oversight and guidance of

MOAIWD. These arrangements satisfy IFAD’s minimum requirements for a robust and sound financial

management with a mitigated risk level subsequently assessed as low. In terms of fund flow, it is

suggested to place the designated account at a commercial acceptable by Government and IFAD, in

view of the problems observed with accounts at the central bank. Detailed arrangements will be

worked out in the draft Programme Implementation Manual (PIM).

161. A procurement assessment was carried out as part of the design on IRLADP operations (see

appendix 8). Malawi has a robust legal and institutional framework for public procurements. The

Public Procurement Act introduced a new legal framework governing public procurement in Malawi.

The framework provided for the establishment of the Office of Directorate of Public Procurement

(ODPP), which, since becoming operational, has taken the lead on reorganising public procurement

reform. Among the changes to the procurement system introduced by ODPP was the complete

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decentralisation of the procurement process to the level of each public entity. The legal and regulatory

framework is sound for efficient public procurement. The Public Procurement Act and Regulations

adequately establish the institutional framework required to support public procurement, the stages of

the procurement process, the main methods of procurement and their conditions for use, and the

conditions for review and auditing.

162. Despite these overall encouraging trends, country procurement assessment by ODPP with

UNDP support found issues that still need to be addressed to ensure that procurement processes in

practice are fully compliant with the legislative and regulatory framework. Mitigations have been

suggested in appendix 8. There will be a Procurement Specialist in the PCO to ensure compliance

with statutory procedures. For PRIDE, it is recommended that the GOM procurement systems will be

used. Thus the procurement planning should be according to the GOM planning calendar. Due to the

medium inherent risk ranking of the GOM procurement systems obtained at various assessments; the

IFAD prior review thresholds for PRIDE would be USD 50,000 for goods and services and USD

100,000 for works to start with.

163. Transparency, governance, anti-corruption. In collaboration with IFAD and GOM, a

Governance and Anti-Corruption Framework will be elaborated during the first year of implementation

to mitigate the risk of corruption and promote effective utilisation of project resources. The Framework

will include: (i) the programme operations and financial manual articulating the type of internal controls

and administrative systems to be established to guarantee transparency and accountability; (ii) the

computerised accounting system that will substantially reduce the scope for human error; (iii) the risk-

based implementation reviews of programme financial management and staff; and (iv) the back-up

procedures kept on the PCO’s computer server to avoid the loss or damage of financial data. PRIDE

will also include a system audits in the TORs of the auditors and in the supervision plan. Internal audit

is considered weak and maybe outsourced to an audit firm.

164. IFAD zero tolerance policy for corruption and fraud urges persons observing concerns of

irregular practices in IFAD funded projects to report to the IFAD Office of Audit and Oversight through

any of the following means:

By telephone: +39 0654592888

By confidential fax: +39 0654597888

By confidential email: [email protected] or by using the online complaint form

In person or by mail to: IFAD - Office of Audit and Oversight (AUO): Investigation Section - Via Paolo Di Dono, 44 - 00142 Rome, Italy

E. Supervision

165. PRIDE will be jointly supervised by GOM and IFAD every six months. Timing of the

supervisions will be coordinated with the production of the six-monthly progress report, so that the

supervision missions can gauge the situation at the same cut-off dates and thereby provide an

additional perspective on progress to the PSC meetings; which hence will have to be planned after

the supervision missions.

166. Supervision missions will have a variable composition, but fiduciary reviews will be a recurring

element in each. The fiduciary specialist will be tasked with both the identification of problems as well

as with finding and/or initiating solutions to problems encountered. The aim will be to resolve all

accumulated issues in finance and procurement during or shortly after each supervision mission.

Terms of reference for the supervision missions will be prepared by the IFAD country portfolio

manager.

167. Nest to supervision, budget is available for a limited number of implementation support

missions. These will be fielded in response to specific problems encountered during implementation

and noted by the supervision missions.

mailto:[email protected]

https://webapps.ifad.org/antifraud/

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168. Towards the end of year three, a Mid-term Review will be fielded with a broad mandate towards

refocussing the Programme. The CPO will prepare a status report ahead of the Mid-term Review,

suggesting and justifying proposed design changes. Moreover, surveys to gauge effects and impacts

will be completed before the fielding of the Mid-term Review.

F. Risk identification and mitigation

169. As shown in the Logical Framework, included at the end of the executive summary, the design

of PRIDE is based on assumptions. These assumptions implicitly signal the programme’s main risks.

If an assumption would not hold, this would negatively affect the integrity of the programme design

and would undermine the degree of success of the intervention. This section describes the magnitude

of the risks and discusses mitigation measures included in the Programme design. The risks are

explicitly recognised, as risk monitoring forms a part of the Programme’s overall monitoring and

evaluation approach. By monitoring risks, the Programme can intensify its mitigation measures, or

review its approaches for better success.

170. Implementation readiness. New programmes in Malawi have historically encountered very

slow start-ups and slow disbursements during the early years of implementation. Substantial delays at

start up postpone programme benefits and generally result in a higher overall cost (as salaries

continue to be paid, even if work does not progress); thereby undermining the investment’s economic

return.

171. The Programme design aims for a swift start: (i) use is made of studies undertaken for IMPIF, to

allow for an early start of construction works; (ii) use will be made of existing capacities in and

experiences of SAPP and RLEEP to initiate good agricultural practices and market linkages; and

(iii) GOM has indicated that it would like to obtain start-up in order to prepare a PIM, AWPB,

procurement documents and set up the accounts; and to start preparatory activities for a first batch of

schemes. The IFAD start-up financing facility supports specific expenditures after entry into force of

the financing agreement (signing of the financing agreement), but before all conditions for first

withdrawal are met.

172. GOM capacities. GOM is hard-pressed to make means meet ends. The weak national

economy combined with the vulnerability to global markets, results in national budgets that are

modest in their lay-out. For years, GOM has not been able to fulfil all vacancies in its government,

including the extension services. Even where staff is present, the level of services is affected by

limited availability of budgets for communication, transport and activities. If PRIDE would rely on the

present capacity in the GOM, implementation would be seriously delayed.

173. The programme includes a dual policy for the mobilisation of services for smallholder

agriculture. Where available, PRIDE enables the performance of GOM staff in critical areas as

irrigation engineering, land consolidation and agricultural extension. Where such services are

unavailable, PRIDE uses its resources to outsource services to the private sector. A dedicated PCO

with designated authority is charged with establishing the terms for supporting government agencies

near the scheme cluster areas; and with defining the terms for outsourcing services. The mix between

mobilisation of government and private sector services will differ per area, and will be carefully

designed and reviewed.

174. Inclusiveness. Women provide 70% of the labour in agriculture and produce 80% of the food

for home consumption. Twenty-five per cent of the households are female-headed, and most of those

live below the poverty line. Like elsewhere in Africa, the youth withdraws from agriculture for lack of

perspective in agricultural growth. If PRIDE does not succeed addressing these two categories, the

effect (enhanced production for nutrition and markets) and impact (resilience of rural communities) of

the Programme will be limited.

175. In recognition of the risk of not adequately addressing important segments of the target

population, the Programme design includes a targeting strategy which aims for inclusive development.

During the preparation phase, targeting will be discussed with the community representatives, and

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their active support is sought. For all major activities, data on participation are disaggregated into

target group segment, and underachievement will prompt remedial measures. Specific attention is

given to female extension workers, with investments being made to ensure especially their mobility.

The introduction of ICT technology and the use of mechanisation is expected to attract especially

attention of young farmers.

176. Availability of rural financial services. PRIDE pursues a gradual intensification of

smallholder agriculture, whereby financial surplus in one season, fuels the introduction and/or

expansion of good agricultural practices in the next. However, especially at the onset of this process,

farmers need to avail external finance to enter into the process. Smallholder farmers are strapped for

cash, and the need to invest in agriculture competes with financial needs for nutrition, medical care,

schooling, household utensils, etc. Informal Rotating Savings and Credit Associations ROSCAs

(known as Chilemba and Chiperegani in Malawi) exist, in which the members pool savings for the

benefit (by rotation) of a single members. Micro-credit is also extended by formal banks. Mix Market

(http://www.mixmarket.org – co-funded by IFAD) lists ten Micro Finance Institutions serving over

375,000 borrowers with a total loan volume of nearly USD 140 million. Interest rates are steep at

about 40% per annum, but loans generally are taken for a single season.

177. Given the availability of rural finance options, the risk of smallholder farmers not being able to

take part in the opportunities offered by PRIDE is modest. The risk is further mitigated by decisions in

the design: (i) irrigation investment is highly subsidised, with farmer not contributing any cash but

unskilled labour - maximised at 20% of the investment cost – only; (ii) farmers’ risk-taking is minimised

by the availability of demonstration packages. Farmers will either experiment with a new technology

using a starter package or will have seen how the new technology works, before investing their own

resources.

178. Catchment management. PRIDE invests in combating land degradation in the communities

immediately around the irrigation systems. Thus, PRIDE addresses community natural resource

management, and this enables PRIDE to build not only the physical interventions, but to also set-up a

model for community natural resource management. The downside is, however, that degradation

concerns in the wider catchment are not addressed and that upstream processes may affect the long-

term sustainability of the investments under PRIDE, especially in the irrigation schemes.

179. The risk of infrastructure failure due to upstream land degradation processes is modest. Direct

threats to the structural integrity of the irrigation schemes can be addressed using the funds reserved

under component 1. Moreover, the Government of Malawi is in the process of setting up the

knowledge base, the policies and the structures for catchment management. A Water Resources

Assessment Study has identified current and future habitat integrity pressures for 69 sub-catchments

in Malawi’s 17 catchment basins; as well as the currently and future fitness-for-use of the related

water bodies. In addition, GOM is in the process of establishing 17 catchment management bodies.

For the moment, the critical issue of wise use of the available water resources is already addressed

by the registration of water withdrawal rights by MOAIWD. While additional external support, such as

under programmes of the Global Environment Fund or the Green Climate Fund would help increase

the pace, it is assumed that current and future efforts of the GOM to protect the natural resource

integrity of the country will safeguard the scheme cluster areas.

180. Unit costs for irrigation development. The estimates for civil works on irrigation schemes

included in the PRIDE budget are based on a variety of sources, ranging from pre-feasibility studies to

detailed design. The final estimate (defined after completion of detailed designs and consultation of

the scheme cluster areas) may deviate, as may the final cost upon completion. A tendency for high

per unit investment costs (over USD 10,000/ha) has been observed in a number of completed

schemes, and modest risk for cost overrun is signalled. Should this risk materialise, PRIDE cannot

achieve its targeted benefited area within the resources available and the EIRR of the Programme will

drop.

http://www.mixmarket.org/

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181. The present unit costs are based on considerable field work in pre-feasibility and feasibility

studies. Allocation of adequate resources for supervision will help control the use of cost variation

orders. In addition, the Programme design includes a pilot for an integrated Build – Design – Transfer

(BDT) contract, which would provide better incentives for a prudent per hectare cost for irrigation

development.

182. Delayed registration of farmer organisations. Within IRLADP and RLEEP substantial delays

are reported in the registration of Water Users’ Associations and Agricultural Cooperatives,

respectively. Organisations that are established as legal entities, may find it difficult to represent the

interests of their members, or to comply with formal administrative procedures. Failure of farmer

organisations implies a lack of socio-organisational sustainability of the programme intervention.

183. Whereas delays in registration are likely to occur, the effects of this are contained. PRIDE is

built on the premise that producer groups do not need formal registration for their members to

conclude business transactions with traders and wholesalers. Whereas the group offers them the

benefits of collective action (storage, grading, transport, negotiation), the individual member (i.e.

smallholder farmers) continues to act as a business entities on her/his own accord. For the Water

Users’ Association the need for registration is, however, compelling: It needs to be registered to be

able to enter into land and water agreements. The PRIDE design has brought this step to the initial

stages of the programme; thereby ensuring adequate time for the registration to take place, and

substantial opportunity for the lead Ministry to pursue the same. The experience of IRLADP, which

could eventually speed-up WUA registration, will provide a good reference.

184. Extreme events. As experienced earlier in 2015, extreme (climatic) events may seriously

undermine the sustainability of land and water management infrastructure. The January 2015 floods

have damaged a number of existing irrigation schemes, thereby rendering the investments either

useless or less effective. Climate change will result in a further intensification of weather extremes.

The long-term viability of irrigation systems is at stake.

185. PRIDE sets up WUAs, which will shoulder regular maintenance and small repairs, including the

built-up of funds for this. While regular maintenance does not preclude damage due to extremes, it is

well-known that regular maintenance reduces the vulnerability of the irrigation systems. Moreover,

designs under PRIDE will be made climate change compliant, amongst others by liaison with the EU-

funded Irrigation and Climate Change Project. Thirdly, it is assumed that GOM – with help from its

development partners – is able to finance future major rehabilitations of irrigation infrastructure

damaged by extreme events.

186. Long-term land access. The establishment of an irrigated command area requires a re-

distribution of land. The larger parcels used for rain-fed agriculture can be split-up in small irrigated

parcels, which can be distributed to several smallholder households. Land access on customary land

is, however, intrinsically insecure and subject to dynamic change. At scheme development, use is

made of tested procedures for providing smallholder farmers equitable access to land. Such land

agreements are subject to free, prior and informed consent by affected parties; and include proper

compensation for any loss of land use, shelter or livelihoods resulting from irrigation development. A

grievance mechanism ensure that all concerned have recourse to a review of decisions of on land and

compensation. It remains to be seen whether the land distribution during scheme construction

remains largely unchanged over a series of years. Differences in social position may translate into a

skewed access to land resources, or a re-emergence of the practice of sub-leasing. Should land

access be increasingly controlled by a few, then the Programme impact on its target group is at stake.

187. The risk of concentrated control over land is limited as PRIDE uses arrangements for access to

land that have proven successful in IRLADP. The programme furthermore includes tracer studies on

land access, which will be undertaken with support from the Global Land Tools Network. These

studies keep tabs on land access, and on farmers´ response to a more secure land access. The

tracer studies also provide an early warning system for land concentration, and allow the Programme

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to take remedial measures. In addition, GOM is processing a new Land Bill which provides conditions

for enhanced security of land access on lands that presently have a customary title.

188. Local livelihood improvements. Indicators for poverty, such as asset ownership and

incidence of wasting, will improve unless the improved productivity of agriculture is used to invest

outside the Programme area. This could be the case when household members migrate out of the

area for attending higher education or in search of gainful employment, while they continue to be

dependent on the household income. Rather than improving their development status directly

following improvement of the farm productivity; households may forego the immediate livelihood

improvement and opt to invest in long-term opportunities towards improvement. The risk is that the

achievement of the Programme goal would be both delayed and more uncertain (due to the risks

associated with the long-term opportunities).

189. The risk of Programme benefits being invested in long-term development opportunities rather

than being used for improved child nutrition and purchase of household assets is only partially

contained through the Programme’s investments in nutrition education and promotion of enhanced

nutritional intake of household members.

IV. Programme costs, financing, benefits and sustainability

A. Programme costs

190. Total Programme Costs. Total Programme costs including price and physical contingencies,

duties and taxes are estimated at USD 84 million over the seven-year Programme implementation. Of

this amount about USD 23 million (27% of total project costs) represents the foreign exchange

component, USD 13 million (15.9%) are duties and taxes. Total base costs amount to USD 77.1

million, while physical and price contingencies are estimated to add another USD 6.8 million (8.8% of

the base costs) to this amount. Investment costs account for 86% of the base costs (and recurrent

costs for remaining 14%).

191. Programme investments are organized into three cost components: (i) Irrigation development

and catchment management; (ii) Agriculture and market linkages; and (iii) Programme management.

The first component consists of three sub-components, being: (i) land and water governance;

(ii) irrigation system development; and (iii) soil and water conservation. The second component also

comprises three sub-components, being (i) improved agricultural practices; (ii) market linkages; and

(iii) mainstreaming nutrition. The third cost component is made of two sub-components, being:

(i) programme coordination; and (ii) knowledge management, planning and monitoring & evaluation.

Funds allocated to Programme management and coordination amount to about USD 6.3 million or 9%

of the total Programme costs. A summary breakdown of the Programme costs by component and sub-

component is shown in table 10. Detailed cost tables are provided in appendix 9.

Table 10: Programme costs summary by year and by component (thousand US$)


2016 2017 2018 2019 2020 2021 2022 Total


1. Land and w ater governance 767 316 778 317 689 339 105 3.311

2. Irrigation system development 2.241 9.929 12.463 10.766 6.268 5.471 1.021 48.159

3. Soil and w ater conservation 184 395 345 411 359 427 128 2.248

Subtotal 3.192 10.639 13.586 11.493 7.316 6.237 1.254 53.718


1. Improved agricultural practices 927 1.327 1.292 1.242 1.179 1.089 341 7.397

2. Market linkages 1.931 4.380 4.510 1.083 534 451 268 13.159

3. Mainstreaming nutrition 14 120 112 113 1 1 - 362

Subtotal 2.872 5.827 5.914 2.438 1.715 1.541 609 20.918


1. Know ledge Management, Planning and M&E 193 120 120 223 125 129 278 1.187

2. Programme coordination 1.464 1.087 1.109 1.122 1.551 1.132 663 8.127

Subtotal 1.657 1.206 1.228 1.345 1.676 1.261 941 9.314

Total PROJECT COSTS 7.721 17.673 20.729 15.277 10.706 9.040 2.805 83.950

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B. Programme financing

192. Financing Plan. PRIDE is to be financed by the GOM, IFAD (loan and grant), ASAP grant

through IFAD, DFID, private sector and beneficiaries. IFAD will finance 31.5% (USD 26.5 million) of

the programme costs of USD 84 million as a loan to the GOM; and 31.6% (USD 26.5 million) will be

an IFAD grant. ASAP will finance 8.4% (USD 7 million). The loan is on highly concessionary terms

including a 40-years maturity period, a 10-years grace period; and a 0.75% annual service charge.

The other 50% of the IFAD funds form a grant under the Debt Sustainability Framework (DSF). The

ASAP grant is provided by IFAD outside the usual funding framework. The government will finance the

taxes and duties (USD 13.2 million, representing 15.7% of total costs). The estimate of taxes and

duties was based on the rates in effect prevailing at the time of the design. In conformity with the

principle that no taxes or duties would be financed out of the proceeds of an IFAD Loan or Grant, any

future changes in the rates and/or structures of taxes and duties would have to be met by GOM.

Beneficiaries will contribute USD 7.2 million (mainly in kind) representing about 8.7% of Programme

costs. The proposed financing plan is summarised in table 11.

Table 11: Programme financing plan (000 USD)

GoM IFAD LOAN IFAD GRANT ASAP DFID Private sector Beneficiaries Total

Amount % Amount % Amount % Amount % Amount % Amount % Amount % Amount %


1. Land and w ater governance 504 15,2 1.035 31,3 1.368 41,3 232 7,0 - - - - 172 5,2 3.311 3,9

2. Irrigation system development 9.597 19,9 15.241 31,6 16.368 34,0 - - - - - - 6.953 14,4 48.159 57,4

3. Soil and w ater conservation 426 18,9 19 0,8 - - 1.646 73,2 - - - - 157 7,0 2.248 2,7

Subtotal 10.527 19,6 16.294 30,3 17.736 33,0 1.878 3,5 - - - - 7.283 13,6 53.718 64,0


1. Improved agricultural practices 806 10,9 1.280 17,3 600 8,1 4.711 63,7 - - - - - - 7.397 8,8

2. Market linkages 1.081 8,2 1.699 12,9 6.881 52,3 - - 498 3,8 3.000 22,8 - - 13.159 15,7

3. Mainstreaming nutrition 53 14,8 - - 35 9,7 273 75,5 - - - - - - 362 0,4

Subtotal 1.940 9,3 2.979 14,2 7.516 35,9 4.984 23,8 498 2,4 3.000 14,3 - - 20.918 24,9


1. Know ledge Management, Planning and M&E 152 12,8 - - 1.036 87,2 - - - - - - - - 1.187 1,4

2. Programme coordination 464 5,7 7.210 88,7 252 3,1 201 2,5 - - - - - - 8.127 9,7

Subtotal 616 6,6 7.210 77,4 1.288 13,8 201 2,2 - - - - - - 9.314 11,1

Total PROJECT COSTS 13.083 15,6 26.483 31,5 26.540 31,6 7.063 8,4 498 0,6 3.000 3,6 7.283 8,7 83.950 100,0

193. Start-up funds. To support a swift start of programme a start-up financing facility is foreseen to

a total of USD 560,000, to cover specified expenditures during the period between entry into force of

the Project Agreement and the moment conditions for first withdrawal are satisfied. In Table 12table

12, the eligible expenditure items and advance estimates are detailed.

Table 12: Start-up financing facility

Item USD

Office set-up 167,000

Salaries professional team 211,000

support team 81,700

Preparation

WUA training 14,800

Scheme appraisal 18,500

Land & water consultations 27,000 Purchase and installation of accounting software 20,000

Setting up M&E 20,000

Total 560,000

C. Summary benefits and economic analysis

194. PRIDE will generate financial and social benefits by promoting investments and activities aimed

at introducing good agricultural practices including post-harvest management in rain-fed and irrigated

crop production. Financial benefits will be in the form of increased financial returns (net incomes) to

about 17,500 smallholder households as direct beneficiaries of the Programme (see table 13).

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Table 13: Direct Programme Beneficiaries

195. Social benefits will include a reduction in poverty rates in the areas targeted by the Programme.

This will be the effect of the increased financial returns for smallholder households consequent to

Programme intervention and of improved employment opportunities in the agriculture sector. Other

social benefits include improved nutrition and increased food security through diversification of crop

production or increased incomes which could be used to improve diets. Irrigation brings the possibility

for farmers to diversify in vegetable crops, having a positive effect on the diet composition. A

household is expected to expand its cultivated products with at least 4 new crops, resulting in a 20%

increase in diet diversification.

196. With regard to the climate change adaptation the expected benefits are as follows:

Improved water security in the irrigation schemes as well as protection of the investments in the

infrastructure in regions where risk of flooding exists;

Improved agricultural productivity in the rain-fed areas with potential of yields increasing by 50 –

100% when using climate-smart good agricultural practices, such as conservation agriculture

and the soil fertility measures integrated therein; which can translate into improved household

incomes and food security;

Strengthened community-based natural resources management to enable informed decision-

making, which also enhances community relationships and cohesiveness;

Enhanced resilience to climate risks such as droughts, dry spells and floods through measures

adopted and improved climate and weather information.

197. The economic rationale for PRIDE is based on: (i) improved agricultural productivity and

reduction of post-harvest losses in both the rain-fed only and the combined rain-fed & irrigated

farming systems as a result of the application of Good Agricultural Practices; and (ii) increased

cropping intensities and high value crop cultivation on irrigated lands.

198. The economic analysis of the Programme indicates that PRIDE is robust in economic terms.

The overall Economic Internal Rate of Return (EIRR) of the Programme is estimated at 20% (base

case) which is above the opportunity cost of capital in Malawi, which is estimated at 12%7. The EIRR

is estimated based on the assumption that 80% of target farmers will adopt the GAP technology

packages promoted by the Programme and 90% would be engaged in farming of irrigated land.

199. The Net Present Value (NPV) is USD 29 million over the 20-year period of analysis, with the

benefit stream based on the quantifiable benefits that relate directly to the activities undertaken

following implementation of the components. These figures are considered reasonable given that

benefits of the Irrigation window in the Malawi Innovation Challenge Fund and the introduction of

7 World Bank: Average deposit interest rate paid by commercial or similar banks in Malawi.

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43

improved cooking stoves) have not been quantified, nor considered in the analyses, while their costs

are. More detail of the Programme economic and financial analysis is included in appendix 10.

200. Sensitivity Analysis. The EIRR has been subjected to sensitivity analysis in order to measure

variations due to unforeseen factors and account for risks. Criteria adopted in the sensitivity analysis

are: 10, 20 and 50% cost over-run, 10 and 20% increase in benefits, 10 to 50% benefits decrease and

1 to 2 year implementation delay. The Programme appears robust as the EIRR remains on or above

the opportunity cost of capital, when faced with variations in costs and benefits of 20%.

Table 14: Sensitivity analysis

Year ERR NPV /a

base scenario 20.0% 29,755

Costs+10% 18.4% 25,460

Costs+20% 17.1% 21,165

Costs+50% 13.7% 8,279

Benefits +10% 21.5% 37,026

Benefits +20% 23.0% 44,297

Benefits -10% 18.3% 22,484

Benefits -20% 16.4% 15,214

Benefits -50% 9.7% -6,599

I year lag in benefit 17.1% 19,965

2 years lag in benefit 14.8% 11,224

a/ Net Present Value (NPV), @12%.

D. Sustainability

201. This section examines the sustainability of the outcomes, benefits and impacts of the

Programme, beyond the Programme implementation period. It will identify key assumptions

underpinning the long-term benefits and highlight measures built-in into programme design that

contribute to a long-term benefit stream.

202. The section on strategic context and rational (Section I) explained that smallholder farming is

stuck at a level of (near-) subsistence, rendering it very vulnerable to climate and economic shocks.

This situation is caused by uncertain land access, low land productivity and weak market linkages.

PRIDE is set-up to break through this deadlock and to establish alternative mechanisms that enable

smallholders to carry-over a surplus from one season to invest in another, while meeting the

household’s nutritional requirements.

203. The programme design assumes that its target group of smallholder farmer households, with

special considerations for the position of women and youth, will continue to benefit from the

Programme intervention beyond the programme period, and beyond the economic lifetime of the

infrastructure introduced by the Programme. The mechanisms built into the project design that

promote this long-term sustainability are:

Scaling Up – PRIDE is scaling up previous experiences in smallholder irrigation, such as

IRLADP, and moreover, it aims to serve as a model to be scaled up in Malawi and elsewhere.

The potential for scaling-up seems good, as the pathways are in place such as the policy

engagement , e.g. an integrated natural resources management policy framework is in place

NAPA and NCCIP, the government policy on Water User Group is conducive for participatory

planning, implementation and O&M of irrigation infrastructure.

Key drivers for scaling – up include the financial and fiscal space. Poor O&M is mitigated by the

funding commitment of the Government of Malawi for larger rehabilitation works, and the

responsibility of the WUA to carry out regular maintenance.

Institutional space is ensured by effective WUA and other grassroots organisations, an

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approach that has been successful in IRALDP and other previous projects. Irrigation will only

succeed if farmers can tap into remunerative markets with new and better quality products.

PRIDE is linked to RLEEP and private sector such as through the MICF to make that critical

step. M&E is critical not only to monitor implementation, but to capture results and lessons

learnt. PRIDE will be equipped with a strong M&E and KM system to deliver information needed

for successful scaling-up of its approach and rendering it to a sustainable investment.

Knowledge management – a key function of the programme management is to draw and

share with key stakeholders in the smallholder agriculture sector lessons from programme

implementation. While the Programme does not assume responsibility for development of

legislation and policies, it is set to optimally inform the smallholder agriculture sector and to

thereby inspire the development of an enabling framework for smallholder agriculture. Much

depends however on the commitment of GOM to continue to pursue growth through more

effective smallholder agriculture.

Market linkages – The Programme fosters a culture of entrepreneurship among smallholder

farmers on the one hand, and commodity-wise cooperation along the value chain on the other.

This mechanism should result in a continuing orientation of smallholder producer groups and

individual producers on market opportunities, and a lasting commitment among the value chain

partners to enhance the value creation for key commodities produced by smallholder farmers.

Continuity may however be affected by major shifts in global land national markets.

Innovative capacity – PRIDE encourages farmers to jointly review and replicate the Good

Agricultural Practices shared with them by the national extension services, and by private

sector agencies involved in agricultural extension. PRIDE enable the government extension

services to offer, with the help of private partners, up-to-date knowledge on climate-smart

agricultural practices. The sustainability of this innovative capacity depends on continuity in

inventory and adaption of good agricultural practices.

Community natural resource management – PRIDE invests in prevention and remediation of

land degradation in the areas immediately surrounding the irrigation schemes. It involves the

concerned communities in prioritisation of such investments and develops a management

system in which local conservation groups can benefit from wood, fruit and fodder production

on the restored lands, in return for the upkeep of the land degradation measure. This would

constitute an innovation in natural resource management in Malawi. This will sustain if

incorporated in Malawi’s emerging policies and approaches for natural resource and catchment

management. Additional donor funding may enhance the pace with which these approaches

are established.

Farmer-managed irrigation systems – PRIDE invests in irrigation development. Malawi’s

irrigation policy pursues the capture and storage of water resources for irrigated crop

production. PRIDE builds on existing experiences in irrigation scheme development, whereby

responsibilities for the management of land and water are vested with Water Users’

Associations. These associations will recover costs for operation and maintenance; and may

pursue business cases for irrigated crop production. Malawi has identified a portfolio of

irrigation investment options for which it actively searches external funding. Given this context,

farmer-managed irrigation is set to be a sustainable addition to the smallholder agricultural

sector. PRIDE will contribute lessons learned to the actors involved in further development of

farmer-managed irrigation.

Land consolidation – PRIDE builds on existing procedures for the consolidation of land under

customary title in irrigation systems. The approach parcels out irrigated land to smallholders;

compensates affected smallholders through land access; and vests overall management of the

land resources in a WUA. The aim is to ensure equitable access to irrigated land throughout the

seasons and without the practice of sub-letting. The dynamics of this system will be closely

followed through annual tracer studies, allowing PRIDE to pursue adjustments, if required. The

sustainability of WUA-managed land access depends on the GOM’s capacity to register,

regulate and review the performance of the WUAs.

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Consultative planning – PRIDE will involve traditional leadership and village development

committees closely in overseeing the community activities induced by the programme. Doing so

provides a governance context at local level. PRIDE relies on this level to target its

interventions to poor households and to ensure the involvement of women and youth in the

activities. Sustaining the commitment of local leadership to the transformation of smallholder

agriculture depends on their continued involvement in planning and targeting of activities

undertaken by MOAIWD and other agricultural sector players.

204. Systemic change. PRIDE aims to transform smallholder farming within an intervention area

limited to about 15 medium-sized irrigation schemes, including surrounding rain-fed lands. Irrigation

infrastructure, climate-smart agricultural practices and market linkages are the ‘game-changers’ that

help institute this transformation. Sharing of experiences within the smallholder agriculture sector will

contribute to scaling-up the approach to other areas with irrigation potential. To pursue enhanced

resilience of rural communities to economic shock and climate change effects in areas without

irrigation potential as well, requires the identification and promotion of other game-changing

approaches as well.

205. PRIDE focusses on mobilising services that help reset smallholder agriculture from subsistence

to commercial farming; be it by enabling the existing government services or by commissioning

service providers. By addressing the line agencies and the private services as integral parts of the

smallholder sector, PRIDE intends to contribute to a growing synergy between the parties that can

help smallholders reinvent their farm enterprises.

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Appendix 1: Country and rural context background

47


Country and economic background

1. Malawi is a densely populated landlocked country of about 15 million people in an area of

118,484 km2, of which 24,000 km

2 is fresh water. Population growth is 3% per annum and the country

has one of the lowest levels per capita GDPs in the world. With a human development index of 0.418

Malawi is ranked 170th out of 187 countries, while its gender development index is 0.544, giving it a

ranking of 116th out of 186 countries

8. The Integrated Household Survey (2011) estimates that 50.7%

of the population lives below poverty line, with 25% being ultra-poor.

2. The socio-economic challenges remain formidable and the ability to maintain a level of

economic growth to ensure poverty reduction remains limited by: (i) the narrow economic base; (ii) the

small and low-value domestic market; (iii) poor infrastructure/high transport costs; (iv) erratic power

supply and heavy reliance on energy imports; (v) Government intervention in key market sectors; and

(vi) weak institutional management capacity in the public and private sectors. Education levels and

productivity are low. Malawi is extremely vulnerable to shocks, particularly drought, as a result of its

heavy dependence on rain-fed agriculture. Inflation and high interest rates remain a disincentive to

investors. Chronic food insecurity and malnutrition, combined with HIV/AIDS prevalence of 11.9%,

adds to the challenges.

3. Malawi has a predominantly agricultural economy, with most of the population depending on

subsistence farming and exports heavily reliant on the key cash crops, tobacco, tea, sugar and cotton.

Real GDP growth rates averaged less than 4% during the 1990s, but have ranged from 2% to nearly

7% since 2002. The current account deficit of nearly 13% of GDP is financed by donor grants and

development credits. The country has limited access to alternative modes of external financing and

has attracted little foreign direct investment.

4. The agricultural sector is important to economic growth in Malawi because it employs about

80% of the total workforce (NSO, 20129) and accounts for 29% of gross domestic product (GDP)

(GOM, 201310

). The sector contributes significantly to national and household food security (GOM,

2011). However, the sector faces a number of challenges including over-dependence on rain-fed

farming, low adoption of improved technologies, poor support infrastructure, inadequate input and

output markets, weak private sector participation, low level of irrigation development, and inadequate

levels of investment in mechanisation.

5. Therefore to address these challenges the MGDS II (2012-2017) identified agriculture and food

security as one of the nine key priority areas. Under agriculture and food security priority area there

are two sub-priority areas, agriculture productivity and diversification, and food security. The

agricultural development strategies contained in the MGDS II are implemented through the ASWAp

(2011-2015). ASWAp is also consistent with the Comprehensive African Agricultural Development

Program (CAADP) and Development Assistance Strategy. A multi-donor Trust Fund (MDTF),

managed by the World Bank, has been instituted to strengthen the capacity for implementing ASWAp.

6. PRIDE is aligned with the ASWAp, which has pillars on sustainable land and water

management and food security. PRIDE will contribute to the achievement of the objectives of two

programmes in the Adaptation window of the National Climate Change Investment Plan (NCCIP):

strengthening catchment area and soil and water conservation management; and improving

community resilience through agriculture production. Contribution to the NCCIP will be through the

water and catchment management activities and improved agricultural practices. PRIDE also aligns

with the National Adaptation Programme of Action (NAPA), which includes i) sustaining livelihoods;

8 United Nations Development Programme (UNDP) Human Development Report 2013

9 NSO (2012) National Welfare Monitoring Survey 2011

10 GOM (2013) Economic Report 2013

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ii) enhancing food security and the fourth priority focusing on increasing resilience of food production

systems under conditions of erratic rains.

7. In order to address economic challenges that Malawi faced in 2012 the GOM developed the

Economic Recovery Plan (ERP) with the objective to ensure rapid economic growth for poverty

reduction. The ERP includes interventions to protect the most vulnerable communities in rural areas,

such as the scaling up of the Farm Input Subsidy Programme (FISP) and medium-term policy reforms

to restore external and internal economic stability. The ERP has prioritised five sectors including

Agriculture. Within Agriculture the following actions of relevance to PRIDE are planned to be

undertaken: (i) Diversify and upscale production of key crops that have potential for export market;

(ii) Continue the GBI with focus on irrigation farming of high value crops, aquaculture and animal

farming; (iii) Enact and implement amendments to land legislation, including the enactment of the

Land Bill; (iv) Review the Special Crops Act as it disadvantages some crops and brings distortions in

the industry; and (v) Increase and improve agricultural extension services.

8. GOM, private sector, development partners and civil society are committed to work together to

generate greater private sector investment in agricultural development; to scale innovation; to achieve

sustainable food security and to reduce poverty and hunger. This provides GOM commitment to

develop regulatory frameworks and mechanisms to enable the private sector to invest in agriculture,

food security and nutrition. The country, led by the Ministry of Industry and Trade, has developed the

National Export Strategy (NES) through consultative processes involving the private sector, academic

institutions, representatives of smallholder farmers and a cross-section of relevant government

organisations. Through NES, GOM has committed to work with the private sector in areas of

developing the oilseed industry, sugar industry, the energy sector and enhance support to agricultural

commercialisation.

Governance Framework

9. Malawi has been a multiparty democracy since 1994. Economic policy is driven by the MDPC

and the MOFEPD. Malawi’s 1998 Decentralisation Policy provided for the devolution of certain central

government functions to 28 elected District Councils (DCs). Below the district level there is a dualistic

system of governance incorporating traditional authorities and elected village councils, which are

members of VDCs and Area Development Committees. IFAD programmes are implemented at the DC

level and below, and have consistently encountered capacity limitations owing to the demands on the

decentralised staff of sectorial ministries and the low technical and financial management capacity.

10. Government policies favour mainstreaming donor-supported programmes within Government

systems, phasing out parallel project implementation structures and adopting sector-wide approaches.

GOM has abolished project implementation units in 2012, and attempted mainstreaming their

functions in the respective ministries. However, the human resource capacity constraints in the civil

service remain a challenge with many programmes which did not have dedicated staff in PIUs stalling.

Notably, most DCs lack fiduciary and technical management capacity and there is often a need for

project appointed staff to undertake grass-roots activities at the district level and below.

Land, water and climate change policies

11. Malawi currently faces a number of land governance challenges. In general, dysfunctional land

policies and institutions have been an obstacle to proper land use, investment in agriculture, private

sector development, gender equality, and good governance. A lack of collaboration between

institutions and the presence of vested political interests have long prevented progress. Insecurity

over rights, absence of low-cost mechanisms for registration, and a non-functioning land

administration system block private sector development and the development of financial services.

Although 25% of households are female headed, less than 15% of land is registered in the name of

women, either individually or jointly. Land use planning is mostly absent. Many land tenure issues

related to irrigation schemes require further attention. A Land Bill has been prepared to address these

issues but has not yet been legislated. However, the current legal framework does provide for the

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granting of legal land rights to WUAs, and through them to their members, although regulations,

procedures and District and local capacities need to be strengthened.

12. Irrigation development has been guided by the 2001 National Irrigation Policy and Development

Strategy (NIPDS). The NIPDS was revised in 2014 and is based on the irrigation sector overall goal of

contributing to sustainable economic growth and development by enhancing irrigated agricultural

production. Specifically, the NIP emphasises increasing the area under sustainable irrigation,

extending cropping opportunities, facilitating crop diversification, creating an enabling environment for

irrigated agriculture, enhancing capacity for irrigated agriculture and promoting a business culture in

the small scale irrigated sub-sector. Institutions for water planning and conflict resolution at a scale

and a cost realistic in the Malawian context have yet to be established. No sustainable funding

mechanisms have been identified for the proposed seventeen large-scale River Basin Authorities.

Other smaller-scale structures and processes should be considered to resolve disputes among

different water users in areas where water competition is intense. The MOAIWD completed an

investment framework and Master Plan for the Irrigation sub-sector by March 2015, which forms the

basis for scheme selection by PRIDE, as well as by other donor-funded programmes.

13. During 50 years of independence Malawi has maintained a duality of smallholder and estate

farming in the agricultural sector. In 2012/13 output from the agricultural sector measured by the real

agricultural gross domestic product (GDP) grew by 5.7% from its 2011/12 value. The smallholder sub-

sector contributes over 70% of the agricultural GDP (GOM). Smallholder farmers mainly cultivate food

crops and raise livestock on fragmented landholdings under customary land tenure. Overtime the

smallholder landholding sizes, which include the dwelling unit for households, have declined from

1.2ha in 1982 to 1ha in 2007 (NSO 2007, 1982) largely due to high population growth rate of 2.7%

(NSO, 200811

). 84% of smallholder farmers now cultivate on less than half a hectare (NSO, 200712

)

compared to only 50% that cultivate the same amount of land as in 2000 (GOM, 2000).

14. The irrigation potential of Malawi remains, largely, unexploited. Out of the potential of 297,000

hectares, only about 94,000 hectares have been developed for irrigation purposes. 44,180 hectares

(47%) are under smallholder farmers benefiting 396,283 people of which 44% are women. The other

53% are under estate management. Dependence on a single annual rainy season production has

resulted in perpetual annual food deficits. In addition, food demand in Malawi has been rising because

of the increase in population. The NSO projects that the population will rise from 15.4 to 19.1 million

people by 2020. Food production under irrigation is, therefore, seen as one way of improving

productivity thereby sustaining more households with increased food and cash crop levels.

15. To further increase area under irrigation a Presidential initiative was established known as the

Green Belt Initiative (GBI). The aim is to produce competitive products under irrigation for the

domestic, regional and international exports. GBI focus is along Lakes Chilwa, Malawi and Malombe;

Shire River and the perennial rivers from Chitipa to the Shire Valley. However there have been only

limited funds to support this and therefore little progress has been achieved.

16. PRIDE will contribute to the objectives of two programmes in the Adaptation window of the

National Climate Change Investment Plan (NCCIP): (i) strengthening catchment area and soil and

water conservation management; and (ii) improving community resilience through agricultural

production. Contribution to the NCCIP will be through water and catchment management activities

and improved agricultural practices. PRIDE also aligns with the National Adaptation Programme of

Action (NAPA), which includes as priorities: (i) sustaining livelihoods; (ii) enhancing food security; and

(iii) increasing the resilience of food production systems under conditions of erratic rains. The

activities financed by the ASAP within PRIDE will support improved climate-resilience of both rain-fed

and irrigated farming systems. The climate change adaptation measures are in response to the main

climate risks of prolonged dry spells, droughts and floods and will include catchment level

management to ensure water security for agricultural production. Catchment management will be

11

NSO (2008) Population and Housing Census 12

NSO (2007) National Census of Agriculture and Livestock (NACAL)

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50

undertaken within a watershed planning framework, bringing together water users to enhance their

collaboration with emphasis on their interdependence and shared benefits.

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Appendix 2: Poverty, targeting and gender

51


Human development and poverty

1. The population of Malawi grew from 9,933,868 in 1998 to 13,066,320 in 200813

, representing an

increase of 32%. There are more females totalling 6,700,549 (51%) than males (49%). The Southern

Region has the highest population of 5,876,784 (45%), followed by Central Region, 5,491,034 (42%)

and Northern Region, 1,698,502 (13 percent). At District level, Lilongwe rural has the highest

population of 1,228,146, while Likoma district has the lowest population of only 10,445. The youth

profile in Malawi indicates that out of the total population more than 40% are aged 10 to 35 years14

.

Literacy rate within this age bracket is estimated at 81.8% with slightly more males (86.6%) than

females (77%) being literate. About 85% (11.1million) of people live in rural areas.

2. The 2013 UNDP Human Development Report ranked Malawi 170 out of 187 countries

surveyed making the country one of the poorest in the world. The third Integrated Household Survey

of 2011 (IHS3) estimates that 50.7% of the population lives below poverty line, indicating that half the

population is poor, and 25% being ultra-poor. The IHS3 defines the poverty line according to the total

consumption of food and non-food items. The population that has total consumption below MK 37,002

is regarded as poor and the population with total consumption less than MK 22,956 is considered

ultra-poor. The Southern region has the largest poverty rate (63%) and the Northern region (60%).

According to the Malawi Welfare Monitoring Report 2011, lack of food and inadequate nutrition are

underlying causes of poverty. In Malawi the incidence of poverty and ultra-poverty is higher in female-

headed households. The proportion of poor and ultra-poor is 58% and 27%, respectively, in female-

headed households. On average, female-headed households earned only 60% of the annual income

of male-headed households.

3. The GOM has over the years pursued various strategies to reduce poverty including: the

Poverty Alleviation Programme (1994); the Malawi Poverty Reduction Strategy (2002–2005); the

MGDS I and the current MGDSII 2011–2016). Although emphasis has been on economic growth,

infrastructural development, and the provision of basic social services poverty remains widespread in

Malawi. One of the more successful but costly strategies was from 2005 implementing FISP in

response to low input use and severe food supply shortages. FISP aimed to provide low-cost maize

and tobacco fertiliser and improved maize seeds to poor smallholders (a legume seed component

was later added). Maize yields increased from 0.8 to 2.0 metric tons per hectare between 2004/05

and 2009/10 and tobacco expanded production at an average annual rate of 13%.

Gender and youth

4. The IHS3 notes that 72.7% (2,087,181) of Malawi households (HH) are headed by males and

27.3% (782,752) by females. Disaggregation by location shows that males headed 82% of the urban

households and 71.1% of the rural households, while females headed only 18% of the urban

households and 28.9% of the rural ones. In terms of rural areas, southern rural (29%) has the highest

proportion of female headed households and the northern region has least (21%). The proportion of

female headed households increases with increase in age. Malawi has a Gender Inequality Index

(GII) value of 0.573, ranking it 124 out of 148 countries in the 2012 index. The GII reflects gender-

based inequalities in three dimensions: reproductive health; empowerment; and economic activity.

The GII shows the loss in human development due to inequality between female and male

achievements in the three GII dimensions.

5. In the agriculture sector, studies show that about 70% of full time farmers are women. However,

most women do not take full control over the use and ownership of agricultural land, access to credit

is low, between 10% and 15% and the control over the use of the credit rests with the men within the

13The 2008 population and housing census. 14

According to the National Youth Policy (2013), youth in Malawi constitute all persons from age 10 to 35 years regardless of their sex, race, education, culture, religion, economic, marital and physical status.

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52

households. Similarly, extension and training services favour men. Women in Malawi are more

vulnerable to climate change than men, mainly because they are poorer than men; they bear the

primary responsibility for growing of food crops and collecting resources like water and firewood,

which are becoming increasingly scarce. Frequent drought and erratic rainfall force women to work

relatively long hours to secure food, water and energy for their homes.

6. An analysis by the Vulnerability Assessment report 2007 found that on average, a Malawian

household spends the equivalent of MK 2,558 per capita, per year on fuel wood, or about 12% of total

annual consumption expenditure. 84% of all individuals who collected fuel wood were women. On

average, active women spent 1 ½ hours on firewood collection. Adult men spend more time on the

labour market than adult women including salaried, casual, part-time, ganyu and non-agricultural

business-related work. The national gender policy summarises the gender inequalities within the

socio-cultural, political, legal, and economic contexts. Major poverty indicators disfavour women in

Malawi and these aggravate the disadvantaged position of women see Box 1.

Box 1: Gender Gaps at a Glance15

Gender Gaps at a Glance

GII – 0.573 (ranking 124 out of 148 countries)

Literacy levels. Females 59%; Males 69%

Population. Women 51%; Men 49%

Access to extension services. Women 14%; Men 18%

Average landholding size. Women 0.803 ha; Men 0.964 ha

Participation in HH decision making in male HH. Women 36%

Composition of agricultural labour force. Women 70%

Poverty prevalence. Female HH 59%; male HH 51%

Care-giving for the sick. Women: 80%

PLHIV. Women: 56-58%

Gender-based Violence victims. 90% are women

Domestic tasks: Women (82%); men (18%).

7. The analysis of the status of women and the gender gaps shows that PRIDE (and other

development initiatives in Malawi) has to address gender issues in order to achieve its objectives.

Experience from IRLADP showed that female headed households responded better to project

initiatives than male-headed among poor beneficiaries. IRLADP further noted that operating under

similar circumstances, female farmers can respond better to development initiatives than male

farmers, and hence their participation in the development can accelerate poverty reduction16

.It was

established that women earn nearly 50% of what their male counterparts involved in similar ventures

in informal enterprise earn. The NASFAM is the largest independent, smallholder-owned membership

organisation in Malawi with over 100,000 members. NASFAM conducts bi-annual gender audits which

indicate the trend on women and youth representation. The 2010/11 gender audit showed that

seasonal average of women membership to NASFAM Associations was 34.4%.

8. In Malawi there are both matrilineal and patrilineal systems. There are four main tribes, two of

which, the Chewa and Lomwe tribes, are matrilineal. Under the matrilineal system, land is handed

down through the female line. Women are considered to be pillars of society, but are nonetheless

restricted to the home and performing family care responsibilities. Paradoxically, such female-

dominated societies prevent women from attending school and from having an economically active

life. Women's role is to stay at home. Northern tribes, which are male-based, do allow women to go to

school and do not marginalise them by forcing them to take care of the family. In many contexts, men

are expected to dominate and women to be passive in taking decisions about sexual relationships.

The ‘subordinate’ position in which Malawian culture places women and girls denies them the power

equal to men and boys, to among other things inherit property or acquire through purchase.

15

Source: The Agriculture Sector Gender, HIV/AIDS Strategy (2012-2017); UNDP, 2013 16

IRLADP Independent Impact Study; 2013

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9. The cultural norms in Malawi exacerbate the gender gap. For example, traditional Malawian

culture, regards, wife battering as normal. Domestic violence occurs across all socio-economic and

cultural backgrounds. Women are the major victims of culturally and socially acceptable gender-based

violence in the rural areas which has been treated as a private issue until recently. GOM in response

to the international and regional instruments on women’s rights, started to implement initiatives aimed

at creating awareness of gender-based violence and changing the social order in which a woman is

assumed to be of lesser status and her husband leads in all family aspects. PRIDE will therefore

undertake to provide sensitisation on gender issues through various ways, such as the Gender Action

Learning System (GALS).

10. The National Gender Policy of Malawi was launched in March 2000 and evaluated after five

years. The evaluation highlighted challenges and issues which included HIV and AIDS, gender-based

violence (GBV), human trafficking, increased environmental degradation and high levels of poverty

with gender dimensions. The policy was revised in 2008 to address these issues. The Gender

Equality Bill, 2012 further provides legal response to the gender inequalities. MGDS II includes gender

as a cross-cutting issue. The MOAIWD gender and HIV/AIDS strategy (2012-2017) recognises that

women and the youth are responsible for a significant proportion of work in the rural sector. In

promoting gender equality and women’s empowerment, PRIDE will therefore be acting in accordance

with and supporting the various policies and legal responses highlighted above.

11. With regard to agriculture, the National Youth Policy seeks to ensure that: (i) modernisation of

agriculture through the incorporation of ICT and other modern technologies and tools to make

agriculture attractive to the youth is encouraged; (ii) access to productive agricultural land in adequate

proportion and other factors of production for the youth who fail to access these resources due to

culture, gender and/or other socio-economic factors is facilitated; (iii) the promotion, provision and

dissemination of youth tailored information and provision of support for advanced training targeting out

of school youth for increased agricultural production, agro-processing and marketing is facilitated;

(iv) an enabling environment for Public Private Partnership for youth development including the

provision of technical training to youth is created; and (v) support for the scale up of the national

internship and mentorship programmes to facilitate youth to enter the labour market in rural and urban

areas is promoted.

12. While the National Youth Policy (2013) defines youth as all persons from age 10 to 35 years,

PRIDE will work young women and men of 20 to 35 years. This is the group that has potential to

participate in the agricultural opportunities sited in the Youth Policy (para 11.) Furthermore, PRIDE is

not implementing a school-based activity, and will therefore not have an opportunity to work with

school going young people.

Rural livelihoods

13. About 85% of households in Malawi are engaged in agricultural activities. Of these households,

about 84% of households are engaged in crop production whilst 44% rear livestock. 43% of

households engaged in agricultural activities are engaged in both livestock rearing and crop

cultivation. In terms of labour the IHS3 found that 94% of the cultivated plots used women and 82%

used men as labour input. Regardless of the sex of the children, 25% of the cultivated plots used

children and 23% reported to have hired child labour input. In terms of cropping pattern, about 31% of

plots are intercropped. More female managed plots are intercropped (39%) compared to male

managed plots (28%). The data from IHS3 further shows that richer households are less likely to

intercrop compared to the poorer households. Across regions, the southern has registered the highest

proportion of plots that are intercropped (50%) compared to the north (20%) and the centre (10%).

14. Some 77% of households reported being affected by substantial price shocks during 2002 to

200717

. 65% of all households reported being affected by a collapse in agricultural crop yields as a

result of erratic weather. This reflects the dependence of smallholders on rain-fed agriculture.

Droughts, erratic rains, floods and water logging affected about 26% of the vulnerable population’s

17

The Vulnerability Survey 2007

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food production, while land shortage (small landholding size) affected 11%. 41% of the population

reported that the underlying cause was lack of farm inputs. Illness or injury to a household member is

reported by almost 50% of all households, consistent with the high prevalence of shocks associated

with death of family members reflecting in part, the HIV/AIDS epidemic.

15. Malawi’s agricultural sector is characterised by a dual structure consisting of smallholder farms

and estates. Although smallholder agriculture is still mainly subsistence oriented, dominated by maize

and other food crops, smallholders are now also contributing significantly to cash crop and export

production in burley tobacco, cotton, tea, bell pepper (paprika), groundnuts and chillies. On average

households in Malawi have about 1.2 ha of land, about 1 ha of which is cultivated. Cultivated land is

mostly low-input rain-fed land (0.95 ha) and the balance is dimba (0.08 ha). The smallholder sub-

sector contributes more than 70% to agricultural GDP and the estate sub-sector contributes less than

30%. Malawi’s economic performance is therefore dependant on how the smallholder farmers

perform. Small-scale farmers’ yields are typically less than the national average, and these

households tend to have lower per capita expenditure and a higher incidence of poverty. 33% of the

population had very low food security. Households vulnerable to food insecurity employ a variety of

coping and adaptive mechanisms intended to mitigate or scale down food hardships. Such coping

strategies include; relying on less expensive or less preferred food, limiting portion size at meal times,

reducing number of meals, restricting consumption by adults, borrowing food or relying on help from

others.

16. SHFs cultivate mainly food crops such as maize; the main staple grain, cassava and sweet

potatoes to meet subsistence requirements, on small fragmented landholdings under customary land

tenure. In terms of gender, the husband decides what to produce, at least when money is involved.

Women mainly grow crops for the family's own consumption, while men grow cash crops. Women

seem to have limited access to, and control over, production factors such as land, agricultural inputs,

and technology. Women provide most of the labour in the smallholder subsector, while men dominate

labour in the commercial subsector, creating imbalances in terms of access to agricultural income.

17. About 95% of the population uses firewood or charcoal for cooking. Gathering firewood takes

as much as three hours in a day and it is mainly the duties for women and children in rural Sub-

Saharan Africa. This limits time that could be spent more productively—tending gardens, raising cash

crops, in family care and sending girls to school. The 2012 Global Burden of Disease assessment

revealed that exposure to fine particulate matter (P.M. 2.5) and carbon monoxide in smoke from

cooking over an open fire causes four million premature deaths per year–exceeding deaths

attributable to malaria or tuberculosis and likely to exceed deaths from HIV AIDs by 2030 [1]. Typical

smoke exposure levels for women cooking over open fires are equivalent to smoking two packs of

cigarettes per day. According to reports, the use of improved cook stoves reduces exposure of women

and small children to fine particulate matter (PM 2.5) and carbon monoxide resulting from partial

combustion of wood and woody biomass from cooking over open fires whether indoors or outside.

Targeting and gender mainstreaming

18. PRIDE’s priority is to develop approximately 15 irrigation schemes, resulting in some 5,100

hectares newly under irrigation. Given an average irrigation scheme size of approximately 350 ha;

each irrigation scheme will be associated with one or more villages, whose inhabitants cultivate the

land to be brought under the scheme. An estimated 90% of the smallholder households in these

villages will take part in the irrigated agriculture, while retaining lands for rain-fed farming, whereas the

remainder 10% will continue to work only on their rain-fed land outside the irrigated area. Farmers in

the latter category are not willing to make the transition into irrigated agriculture but will benefit from

PRIDE support to good agricultural practices and market linkages for rain-fed crops. PRIDE supports

both types of smallholder farms. The figures in the table are estimates only and will be further

specified by the Programme’s baseline survey.

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19. The target group is defined as smallholder farmers in the selected scheme cluster areas. Within

this group, a primary target group comprises households that are currently food insecure and produce

mainly for subsistence. The target group can be further analysed in terms of poverty and a typology

can be applied as follows:

Ninety per cent of rural dwellers are reportedly engaged in farming. In the 15 scheme cluster

areas selected for the Programme this percentage can be assumed to be virtually hundred as

the small commercial centres – where shops, services and schools are located – are generally

located on the roadside rather than in the scheme cluster areas. This would especially hold

true, if we consider the household: while some individuals may be engaged outside agriculture,

the household living in the area still would be engaged in agriculture;

Rural poverty in the northern and southern regions is 60 and 63% respectively. Assuming that

non-farming households are generally better-off; and that these households are generally

absent in the scheme cluster areas; it seems reasonable to estimate prevalence of poverty in

the scheme cluster areas at 70%. Households that are poor, but not ultra-poor (see next) are

food insecure in at least some years, while non-poor smallholder households are food secure in

all years, and are able bounce back after extreme events;

Extreme poverty, coinciding with food deficiency, is reported at 29-33% for the rural north and

south respectively. Here it is estimated at 35%, reflecting the absence of well-off non-farming

households in the total sample. This category includes landless and near landless households,

who largely depend on agricultural labour.

Categories Households (#) Households (%)

Total 19,500 100

Non-farming households negligible 0

Food secure smallholders 5,850 30

Food insecure smallholders 6,825 35

Food deficit smallholders 6,825 35

20. The priority target group is defined as smallholder farmers who are currently food insecure and

produce one crop annually mainly for subsistence. The focus is to support the SHF target group to:

(i) be allocated secure land in PRIDE irrigation schemes; (ii) become members of their respective

Water User Association (WUA); and (iii) become business entities (individual and as groups) to

respond to market opportunities which will enable them to graduate from subsistence to food secure

semi-commercial farming status.

21. Targeting mechanisms. PRIDE’s targeting mechanism will draw on IRLADP lessons and

ensure equitable participation at all levels including in allocation of irrigated land as well the provision

of other services such as training. The household mentoring approach used by IRLADP for enhanced

gender equality and women’s empowerment will be used. The main measures and activities are

summarised in the Targeting Strategy Matrix.

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Targeting strategy matrix

Measures Activities

Geographical targeting PRIDE deploys a method for scheme selection combining the GOM – IMPIF prioritisation framework with PRIDE-specific indicators;

One large scheme for potential co-investment in the Northern Region has been pre—identified.

Enabling measures – to

create and sustain a policy and

institutional environment

favourable to gender equality

and women’s empowerment

Gender awareness creation for Traditional Authority / Chiefs to enable gender sensitivity in their work with communities;

Sensitisation of programme implementers (including the engineers);

Sensitisation of local leaders in charge of land issues in target areas;

Gender Audit of three WUAs supported to become centres of excellence;

Communication, extension and knowledge packages used in PRIDE will be gender sensitive in terms of language, topics and literacy;

Facilitate women and youth participation in WUA trainings and study tours by addressing barriers to their participation.

Empowering measures – to

give target groups equal

chances to access activities

Set quotas for leadership positions for women in WUAs;

Leadership training, particularly for men from poorer households, women and youth;

Promote equitable distribution of irrigated land.

Direct targeting – when

services or resources are to be

channelled to specific

individuals or households

Identify households to participate in the household mentoring approach;

Selected young women and men to be trained as household mentors.

Self-targeting measures – to

ensure that goods and services

respond to priority needs,

resource endowments and

livelihood strategies of target

groups

Strengthening of women and youth groups in various fronts including entrepreneurship;

Ensure that PRIDE’s interventions respond to the priorities, labour capacity and livelihood strategies of the smallholder farmers including land allocation within the scheme.

Operational measures – to

ensure gender-equitable

participation in, and benefit

from, planned activities

Ensure TORs for PRIDE staff reflect contribution to gender equality and community empowerment including the Programme Coordinator;

Discussions in start-up workshop and other mobilisation activities to include discussions on gender and youth issues.

Monitoring targeting

performance – to monitor

outputs, outcomes and impacts

as they relate to target group

The WEAI to form main part of gender analysis in the baseline survey and RIMS data collection and reporting;

All data to be disaggregated by sex and age with due qualitative analysis.

22. Gender mainstreaming: PRIDE will Train Trainers to use the household mentoring approach

and the Gender Action Learning System (GALS) tools to roll-out the out the methodologies to the

communities. Young women and men in the communities will be selected (through a defined criterion)

and trained to become household mentors. Under IRLADP, a manual and implementation guidelines

for the mentoring approach had been developed through the MOAIWD. These guidelines will be

updated to fit the PRIDE context as well as incorporate the wider GALS methodology. GALS has been

implemented in the context of both IFAD-funded interventions and NGO-supported projects. It helps to

address and overcome unequal gender and social relations. It is a versatile methodology that can be

integrated with a variety of interventions (such as rural finance, natural resource management, value

chain development). It can be used for households and groups. GALS will be incorporated in the

household mentoring and in training and capacity building of WUAs. GALS uses a set of pictorial tools

that can reach both literate and illiterate people.

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Appendix 3: Country performance and lessons learned

57


1. Overall, the performance of the country programme has only been moderately satisfactory,

plagued by slow implementation related to capacity shortfalls in Government institutions. As the size

of the IFAD programme grows, these limitations will become increasingly important and necessitate a

high level of implementation support. The multitude of programmes and projects supported by other

donors adds to the pressure on capacity, especially within MOAIWD. The Government’s policy to

discontinue the use of Programme implementation units (PIUs) and contracted project staff seriously

delayed implementation and disbursement. SAPP had only disbursed 3% of total funds in two and a

half years. GOM with IFAD is implementing a Fast track Action Plan to get SAPP back on schedule

including a full time dedicated transitional programme coordination team. A number of lessons have

been learned from experience of IRLADP, IFAD and other partners in Malawi and their respective

design implications are summarised below.

Lesson Learnt Design Implications

A wide geographical spread of programme sites makes

implementation costly and adversely affects quality and

timeliness.

Restrict PRIDE to a few larger schemes and provide

adequate support to district agencies.

A dedicated full-time coordination team is required

immediately on start up for efficient and timely

implementation of activities.

DOI have agreed to recruit a full time dedicated team

for coordination of PRIDE contracted on a

performance basis.

Programmes should not be designed too rigidly and have

the flexibility to respond to new opportunities during

implementation.

PRIDE designed as a framework to attract private and

public investors to support new opportunities.

Essential to have secure formal land tenure for all

smallholder members of an irrigation scheme prior to

implementing the works.

Support relevant agencies to pass and enforce the

land bill and related legislation. Hold early

consultation with stakeholders to address land tenure

security issues in a participatory and gender-sensitive

manner. Prior to investment, stocktaking to capture

the current land tenure situation in the potential

irrigation command area and allocation of plots.

Land should be secured equitably throughout the seasons

for all members (male, women and youth) in a scheme to

enable up to three crops per year.

Establish the WUA and ensure that it has legal land

leases or customary land rights assigned

transparently and equitably to its members.

Water rights need to be allocated to each WUA and

enforced up and downstream.

Support WUA to obtain legal water rights from

regulatory authority prior to implementation of the

scheme.

Stakeholders must be involved with the conceptualisation,

design and implementation of a scheme and catchment.

Use IRLADP approach to facilitate full participation of

stakeholders at all stages of the scheme cycle

through establishment of a WUA.

Bylaws and constitution needs to be developed and

accepted by all members of each WUA in a scheme.

Establish WUAs with a strong constitution prior to

construction. During construction, train in modules

used by IRLADP and register them.

Water available at the end of the dry season is below

demand and reducing the area to be irrigated as well as

limiting selection of crops.

Obtain data on dry season river flows and match the

development of irrigated land to available water

resources.

Reliance on pumping has led to irrigation schemes for

smallholder farmers not being operated and maintained

and abandoned.

Give priority to gravity fed schemes. Introduce

advanced and water-efficient technologies where

technically feasible with capacity building.

The irrigation scheme needs to be economically and

environmentally sustainable and operated and maintained

by the WUA with minimal GOM support.

Support commercial farming. Develop business plan

for the WUA to collect fees for effective operation and

maintenance.

Generally female farmers respond better to initiatives than

males. Greater female participation in development can

accelerate poverty reduction.

PRIDE will use strategies such as quotas and the

household methodologies to ensure women and

youth participation to enhance gender equality.

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Lesson Learnt Design Implications

Development of irrigation farming moves households out of

poverty achieved by adoption of improved technologies

giving increased crop productivity and food security.

Irrigation development must be accompanied by improved

access to farmer services to support farmers to transition to

commercial units.

Component 2 builds capacity of the farmers and

service providers working with SAPP to deliver

climate-resilient GAP and RLEEP to promote value

chain linkages to the market. This will help

smallholder farmers to shift from subsistence farming

to small-scale commercial agriculture.

SHFs need to be sensitised to respond to market demands

for high value crops and to select crops to give optimum

returns.

Facilitate RLEEP to sensitise SHFs on value chain

and the markets and in selection of commodities.

Effective cooperation among delivery agencies is essential

to balance the investment in irrigation development with

soft inputs, such as improved access to services. Capacity

building in marketing skills for the increased yields is

needed.

RLEEP will sensitise farmers to form groups, give

commercial and business planning training so they

can select the crops they will grow and be linked to

the relevant value chain.

Adequate consultations between engineers and

communities during design and implementation, with

relevant government agencies closely scrutinizing such

designs to ensure that they are consistent with the specific

environment and are feasible.

Build on the processes and procedures successfully

developed by IRLADP, including social and

environmental impact assessments. Catchment

protection within the scheme area will be prioritised.

Unit costs to develop and construct irrigation schemes are

medium in the range of USD 9-13,000/ha.

PRIDE will focus on high value crops and facilitate

value chain linkages in order to generate an

acceptable return on investment.

Many examples of contracts being delayed due to

contractors either/and deliberately underbidding, or having

inadequate resources or due to inflation of construction

material prices.

Allocate resources to support local contractors to be

organised and trained on irrigation and drainage

design and construction. In an unstable economic

environment, consider fixing contract sums in a more

stable currency.

Design an appropriate quality scheme in line with the

demands of the beneficiaries and the fees they can afford

to pay for O&M.

Involve WUAs with planning and design of schemes

and educate them in the options and costs as part of

developing their business plan.

Environmental and conservation measures in the

catchment areas (upstream) are the key to sustained use

of the irrigation infrastructures.

Support communities to rehabilitate degraded

hotspots, catchment planning and. produce ESMPs

and safeguards with budgets for implementation.

Catchment management needs to be participatory with

hotspots identified where prioritised interventions can be

initiated to ensure water security in the irrigation scheme.

Build on the IRLADP participatory processes in

developing the catchment management plan and

implementing the prioritised interventions.

Conduct pre-feasibility and feasibility studies for each

scheme. Procurement through NCB which takes time in

Malawi (6-12 months).

Where practical, target schemes that already have

feasibility studies done. Procurement to be

undertaken in the rainy season.

Construction contracts spanned more than a dry season for

the rehabilitation schemes. Farmers could not utilise the

dry season to grow any crops in their gardens when water

could not be run in the existing canals with loss of

livelihood.

Farmers will be sensitised early to find alternative

livelihoods. Where contractors are used, the works a)

will be scheduled that parts of the scheme can still be

used for irrigation during construction; b) in order to

work around damage caused by farmers in finished

structures, the contracts should allow for a phased

handover.

Many programmes do not devote adequate resources to

M&E and/or design systems that are too complex and

contain too many performance indicators.

PRIDE will adopt a streamlined M&E approach that

includes a large measure of self-monitoring by

participants and partners. This will be facilitated by a

dedicated PCO M&E Officer.

Alternatives considered and rejected

2. Various schemes in the Shire Valley were considered but they were rejected for a combination

of environmental issues and that they are dependent on other donor partners having the funds

available at the same time for these schemes in excess of 10,000 ha.

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Appendix 4: Detailed programme description

59


1. This appendix describes PRIDE’s two components in some detail. It identifies the main work

processes that will need to be detailed in the Programme Implementation Manual (PIM, draft table of

contents included in appendix 11).


2. This component aims to develop climate-resilient land and water management systems for

smallholder households on both rain-fed and irrigated lands. Sub-component 1.1, Land and Water

Governance, comprises preparation activities for all other investments as well as the establishment of

WUAs. Sub-component 1.2 targets investments in irrigation infrastructure, which will enable increased

agricultural productivity and will open up opportunities for cash crop production. Sub-component 1.3

targets soil and water conservation investments in erosion affected or vulnerable rain-fed lands in the

scheme cluster areas, as an important pillar of PRIDE’s sustainable land management strategy.

Outcome Outputs

c) Climate-resilient land and water management systems for

smallholder households on both rain-fed and irrigated

lands

1.1 Communities effectively manage their

medium-sized irrigation systems

1.2 Medium-sized irrigation systems (50 – 1,000

ha) established

1.3 Erosion-affected and vulnerable land rain-fed

land recovered

Sub-component 1.1: Land and Water Governance

3. This sub-component targets the preparation stage for all investments (including component 2)

in the scheme cluster areas. This includes the formation of WUAs to manage, operate and maintain

irrigation schemes, building on the approach used by IRLADP.

4. Preparation activities and investment agreements. A Community Planning and Investment

Agreement (CPIA) process will be initiated in scheme cluster areas, which will guide government and

beneficiaries through the preparation phase. The CPIA process includes free prior and informed

consent (FPIC) procedures and ultimately leads to the signing of a number of Investment Agreements,

detailed below. PRIDE will set up a multi-disciplinary CPIA team in each district to guide the

preparation activities, comprising of concerned government agencies at District level and specialised

service providers where required. The communities will during initial consultations be represented by

their leadership and village development committees, who will be asked to convene a Combined

village committee for the scheme cluster area. The CPIA process is based on the approach used by

IRLADP, and will be further elaborated with concerned parties during programme start-up, using

experiences from IRLADP implementing partners. All plans developed in the CPIA process will be

submitted through the Area Development Committee (ADC) to the District Executive Committee for

approval and will provide the basis for preparing the annual work plan and budget.

5. The CPIA process starts with a Participatory Rural Appraisal (PRA) of the scheme area,

which will allow the farmers to get a thorough understanding of the impact of the proposed

investments. The PRA will be conducted by the CPIA team together with the combined village

committee and includes an appraisal of areas to be protected, consultations on irrigation scheme

planning, and identification of crops and markets to work on. The appraisal of irrigation scheme areas

will capture the current land tenure situation in terms of land use and land ownership. This will

subsequently enable the combined village committee to assign an interim formation committee for the

WUA, charged with representing farmer interests throughout the remainder of the process, until the

WUA executive committee is elected by the scheme beneficiaries. The WUA formation committee will

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be taking a lead role in the establishment of Land and Water Agreements, overseen by the Combined

village committee.

Figure 1: The ‘community planning and investment agreements’ process

6. Land and Water Agreements. Consultations will be held to establish Land and Water

Agreements between the WUA, landowners and, where applicable, Traditional Authorities. At this

stage, the WUA formation committee acts on behalf of the interests of the to-be-formed WUA; but the

agreement itself can only be concluded once the WUA is formally established. The consultations will

address (i) access to land for farmers with less access at present; (ii) compensation for those affected

by scheme construction activities; (iii) grievance mechanisms; and (iv) confirmation of free, prior and

informed consent. For schemes established on customary land, compensation options could include

landowners being: (a) allocated (or retaining) larger land parcels in the irrigation scheme; (b) provided

alternative land; (c) provided cash compensation; and/or (d) another option agreed to by the intended

beneficiaries. In cases where unallocated customary land is used, the Combined village committee

will approve land sharing agreements and compensation arrangements that may be required for the

wider community that may have been using the land.

7. The Land and Water Agreements will include (i) the amount of land each WUA member will

have access to, including procedures on land and water allocation in times of limited water availability;

(ii) rules for changes in access to land in case of non-payment, non-performance or death;

(iii) stipulations on sub-leasing; and (iv) procedures for conflict resolution. Land parcels will be

surveyed and demarcated and WUA plot allocation registers will be maintained.

8. Scheme Implementation Agreements. In parallel to the Land and Water Agreement and WUA

establishment, the WUA formation committee will – in preparation to a WUA decision – negotiate the

irrigation scheme lay-out and the beneficiary contribution to scheme development with the design

consultant mobilised by PRIDE. In general, the WUA takes responsibility for land levelling,

construction of tertiary and field canals, and for collection of local construction material. PRIDE aims

to keep the beneficiary contribution within 20% of the total scheme value. The beneficiary contribution

will be carefully monitored, during planning, design and implementation. The WUA will form a

construction supervision committee of which the responsibilities need to be discussed; and which’ role

needs to be reflected in the construction contract. The conclusions of these negotiations will be

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documented in a Scheme Implementation Agreement, to which the WUA and the services mobilised

by PRIDE will be held accountable.

9. WUA establishment and strengthening. As part of the action plan, a WUA will be formed for

each scheme as the legal entity holding lease of the irrigation command area and responsible for land

and water management in this area. WUAs are private, non-profit, self-supporting, independent

entities with four main functions: (i) management of WUA members’ access to irrigated lands;

(ii) operation and maintenance of the irrigation and drainage systems; (iii) collection of water charges

and membership fees; and (iv) provision of law and order among the irrigators (including resolution of

irrigation water related conflicts).

10. Depending on the size of irrigation command area, the WUAs will have up to a three-tier

organizational structure; one for each level of tertiary, secondary and main canal. Membership of

WUAs will be automatic for all water users owning or possessing land located in the irrigation scheme.

Each member will have equal voting rights in elections and decision-makings to democratically elect

their leaders and achieve equity and transparency in land and water allocation. The WUA will have

(i) a General Assembly composed of all members; (ii) an Executive Committee for day-to-day

operation and management; (iii) a Water Jury for resolution of disputes arising among members; and

(iv) various subcommittees fulfilling technical functions such as financial management, construction

supervision and operation and maintenance. The WUA will be overseen by the Combined village

committee.

11. Before the establishment of WUA management structures, future WUA members will visit

nearby functioning WUAs. This will enable the farmers to get acquainted with irrigation farming and

scheme management, and to learn from their peers’ successes and failures, which will allow them to

get a better understanding of the different roles and responsibilities in scheme management. PRIDE

will subsequently, through its service providers, assist the WUA in electing its Executive Committee,

developing by-laws and obtaining registration as a legal entity. PRIDE will also assist in the formation

of subcommittees through the facilitation of meetings and by providing training.

12. Members of the executive committee and subcommittees will receive training on their

respective duties, such as financial management, construction monitoring and scheme operation and

maintenance. Executive Committee members and subcommittee leaders will participate in leadership

training every two years to strengthen their managerial skills. Follow-up training on technical subjects

will be provided when a need is identified during annual joint review meetings. Building on IRLADP’s

experience, scheme operation and maintenance training will be more structured and intensive, with

hands-on training provided every 6 months during the first three years of operation.

13. PRIDE will enable the WUA to obtain formal water use rights to ensure availability and

equitable access to water from the source and optimum utilisation of the capital investments. The

water requirements and abstraction rates will be prepared by the scheme design consultants to be

submitted as a part of their report. The consultant will also draw up and discuss a proposal for water

distribution and for rotation of irrigation turns.

14. PRIDE will establish a WUA start-up facility. Using the experience from cross-learning visits and

initial training, the WUAs will prepare investment proposals against a predefined maximum budget.

Such proposals can include any investment that will improve the WUA’s and scheme’s functioning.

The proposals will be assessed on their merits by a committee formed by PRIDE.

15. Preparation of other activities. The other activities to be undertaken in the scheme cluster

areas, such as soil and water conservation, good agricultural practices and market linkages, will be

handed over to beneficiary groups and lead farmers who will liaise directly with agencies

implementing the PRIDE programme. Facilitators from within the community will be trained to

enhance participation of women and youth in the meetings, and as such improve equality in the

membership of committees.

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16. Soil & Water Conservation Planning – Concurrent with the planning of the irrigation scheme,

the communities will also plan investments in the wider scheme cluster area. This planning will be

done through conservation groups that are initiated by the combined village committee for each

prioritised eroded or erosion-prone area. Selection of sites for intervention will be done in a

participatory manner, informed by the ADC’s Environmental Action Plan and available land

degradation assessments. These activities will be carried out under sub-component 1.3.

17. Good Agricultural Practices and Market Linkages – Crucial to the success of PRIDE’s

investments, farmers will be assisted in their farming practices and value chain linkages. The

combined village committee will help enlist lead farmers for these activities, who will in turn form

groups to take part in the activities carried out under component 2.

18. Joint review, on-demand training and studies. PRIDE will monitor the implementation and

impacts of land and water agreements through regular joint reviews, the results of which will be

reported both to the WUA as well as community representatives. A specific tracer study will be

conduct over the full length of the programme on a limited number of schemes, to get an in-depth

understanding of the land access dynamics and how these affect agricultural practices, and to

propose improvements to the CPIA process. To do so, PRIDE will link up with the Global Land Tools

Network through their partnership with IFAD under the regional “Tenure security learning initiative”

grant programme.

19. Recurrent WUA inspection visits will serve to assess the state of the irrigation system, advice

the WUA on required O&M and to optimise the scheme’s functioning. The inspections will also identify

capacity building needs, which will be addressed through needs-based and on-demand training. This

inspection and needs-based training will be done during the first three years of WUA functioning. Both

the land and water agreements reviews as well as the WUA inspection visits will at programme start

include recently finished IRLADP schemes to guarantee their continuity.

20. To capitalise on the sizeable investments made under PRIDE, the programme will include

comparative studies on emerging irrigation practices. The topics for these studies will be defined as

practices emerge, and could range from O&M modalities, land and water distribution practices and

agricultural strategies to financial management and conflict resolution.

Sub-component 1.2: Irrigation System Development

21. The main focus of this sub-component is the development of 15 irrigation schemes, covering

about 5,100 ha. Investments in this sub-component are guided by the Irrigation Master Plan and

Investment Framework (IMPIF). One of the key strategies that emerged is to invest in water storage.

With increasingly erratic rainfall patterns as a result of climate change, and utilisation of dry season

river flows reaching its maximum, water storage has become a necessity for further agricultural

development in Malawi. Water storage will have a positive effect on the regulation of water flows and

as such, combined with improved catchment management, reduce the chance of river floods.

22. The shortlisted schemes (table 1) are located in seven districts, concentrated in four Irrigation

Service Divisions (ISDs). The ISDs are decentralized entities of the Department of Irrigation and will

be key in the implementation of PRIDE. With an average design-to-commissioning time of 3 years,

irrigation investments will be phased in three lots (see figure 2), with 1 or 2 schemes per ISD in each

lot. The ISD and district staff, as well as contractors can as such optimise their work on consecutive

schemes. The more complex schemes will be constructed first, to avoid late-programme delays.

Household land allotments, estimated at an average 0.3 ha per household, will vary from scheme to

scheme and will be determined in the Land and Water agreements (sub-component 1.1).

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Lot Scheme District Irrigation Service Department

Command Area (ha)

1

Marko Chitipa Karonga 727

Matoponi Zomba Machinga 73

Mlooka Zomba Machinga 138

Mpamba Nkhata bay Mzuzu 788

Nkhulambe / Wowo Phalombe Blantyre 310

Kasimba Karonga Karonga 162

2

Mwenilondo Karonga Karonga 524

Nazombe Chiradzulu Blantyre 470

Mafinga Hill Chitipa Karonga 43

Chanyungu Mposa Machinga Machinga 114

Msenga Nkhata bay Mzuzu 836

3

Chipofya Nkhata Bay Mzuzu 369

Lingoni Machinga Machinga 189

Kadewere Chiradzulu Blantyre 300

Kasano Karonga Karonga 95

Totals 7 districts 4 ISDs 5138 ha

Figure 2: Phasing of irrigation scheme development

23. Four of the schemes in the shortlist include water storage by medium-sized earthen dams,

between 8.5 and 18.5 meters in height and with storage capacities between 4.5 and 9 million m3. Two

schemes use pumps for water supply, others are gravity-fed.

24. Implementation readiness is a major focus for PRIDE, as irrigation projects are known to be

prone to start-up delays. To increase implementation readiness and as part of the IMPIF, GOM and

development partners have decided to maintain a pipeline of studies, which new investment projects

can use as long as they make new studies available for others through the IMPIF pipeline. From this

pipeline, PRIDE has selected 5 schemes with feasibility studies and 10 schemes with pre-feasibility

studies available. A start-up financing facility will be used to finance the early launch of further

consultancies for feasibility and detailed design studies.

25. While PRIDE has shortlisted 15 schemes, final investment decisions on individual schemes will

only be taken when the CPIA process has been successfully completed, an ESIA has been carried out

and when feasibility studies have proven the scheme’s financial and economic viability. To allow for

flexibility, PRIDE has selected another 9 schemes as a reserve, totalling about 3,800 ha. These

reserve schemes have been chosen based on their IMPIF score and their geographical match with

the shortlisted schemes.

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Scheme District Irrigation Service Department

Command Area (ha)

Dowa Dambo Dowa Kasungu 375

Nkawinda/Bakasala Blantyre Blantyre 121

Likabula/Kholiwe Mulanje Blantyre 629

Faiti Mwanza Blantyre 505

Mdenga Balaka Machinga 204

Lupenga Mzimba Mzuzu 313

Perete Phiri Mzimba Mzuzu 564

Bwanamudoko Mzimba Mzuzu 784

Msindwa Nkhotakota Salima 337

Totals 6 additional districts 1 additional ISD 3833

26. Water availability and climate change. PRIDE will engage with an EU-funded project which

seeks to mainstream climate change in the irrigation sector in Malawi. This project will amongst others

look at reviewing design codes to take into account predicted changes in water availability and

improved irrigation system efficiency. PRIDE will mainstream the revised design codes into its

irrigation system development activities.

27. Sustainability and unit costs. Sustainability, and in particular operation and maintenance

(O&M), remains a major concern. It is essential for PRIDE to break-out of the cycle of scheme

construction, degradation and rehabilitation. While PRIDE will include significant capacity building to

strengthen the farmers’ and district officers’ technical capacity to maintain the system, funding of O&M

is critical and will need to be borne by the revenues created through improved productivity and better

market linkages.

28. A study by the International Water Management Institute (IWMI) (Inocencio et al, 2007) found

that average unit hardware costs in Sub-Saharan Africa (SSA) for projects implemented between

1967 and 2003 were with USD 13,802 /ha (in 2014 USD values) much higher than the average USD

7,223 /ha for the rest of the world. However, when irrigation projects are categorized by EIRR,

“success projects” (EIRR>10%) in SSA were with USD 4,681/ha not inherently more costly than

success projects in the rest of the world. Average unit costs for SSA were higher because of the

higher percentage of “failure projects” (EIRR<10%).

Table 1: Unit costs of irrigation projects in Africa in 2014 USD values (Inocencio et al, 2007)

New Construction Rehabilitation

Unit Cost (USD/ha) a/ Total Cost Hardware Total Cost Hardware

Average SSA 19,050 13,802 10,850 6,667 Non-SSA 8,685 7,223 3,005 2,404

Success projects EIRR >10% SSA

7,546 4,681 4,597 3,035

Non-SSA 6,066 4,990 2,416 1,865

Failure projects EIRR <10% SSA 30,554 22,925 21,569 12,894 Non-SSA 14,001 11,761 5,260 4,465

/a In 2014 USD values using GDP deflator

29. Based on the available studies and IRLADP’s experience, PRIDE’s average unit (hardware)

costs are estimated at 7,862 USD/ha, including an estimated 20% farmer contribution. These unit

costs are significantly lower than the average unit costs in Sub-Saharan Africa, yet higher than the

average unit costs for projects having an EIRR larger than 10%. The high unit costs can partly be

explained by high costs of transport and imported materials, yet there is scope for PRIDE to push for

more cost-effective designs.

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30. Integrated Contract pilot. In an attempt to find new methods to contain the high unit cost for

irrigation development – and thereby to enhance the feasibility of investing in smallholder irrigation –

the Programme will pilot an innovative procurement arrangement, that has been successfully applied

by other sectors. In an effort to reduce unit costs, PRIDE will pilot the use of integrated contracts; one

combined contract for design, build and transfer (DBT) of schemes which will be tendered to consortia

of engineering firms, civil works contractors and organisational development specialists. The DBT

contract value will be based on a unit cost per hectare, instead of on a bill of quantities. This would

give the consortium the incentive to minimise costs and maximise land under irrigation through water

efficiency gains, and to achieve this by working more closely with the community. Payment of the

contractor would be based on actual area irrigated after an initial period of operation (say 3 years);

and on evidence of a successful transfer of scheme management. Such contracts will require higher

contract management capabilities on the side of PRIDE, and substantial working capital on the side of

the consortium, and would place new demands on quality control as a part of contract supervision.

PRIDE will carry out market consultations to address these issues and pilot a DBT contract for one

scheme.

Component 1.3: Soil and Water Conservation

31. This sub-component addresses urgent environmental degradation risks in scheme cluster

areas by funding soil and water conservation measures. This is part of PRIDE’s sustainable land

management strategy which also includes the promotion of good agricultural practices in sub-

component 2.1. All activities in this sub-component are financed through ASAP.

32. Soil loss in Malawi is estimated at 20 tons/ha/year and a recent study found this contributes to a

reduction in crop yields of more than four per cent per year. Not only does soil loss affect agricultural

production directly, it also creates problems for downstream water users through siltation and

reduction of water quality. Reversing land degradation is as such of primary importance for securing

the productivity of irrigation schemes.

33. Land degradation is tightly linked to socio-economic pressure on scarce natural resources.

Malawi’s high population growth causes increasing demand for new agricultural lands and fuelwood,

which in turns drives deforestation. Land degradation can thus not be addressed without addressing

its socio-economic drivers.

34. PRIDE’s overall approach for soil- and water conservation in the scheme cluster areas is to

invest in measures that address land degradation, on the proviso that management of the lands thus

protected or restored is placed with conservation groups. In return for ensuring the upkeep of the

infrastructure, these groups can reap benefits from the land. This will be achieved through for instance

the planting of dual-purpose trees or restoration of soil cover on degraded lands by grasses suitable

for cut-and-carry practice.

35. Participatory Planning. In the CPIA process (sub-component 1.1); priority areas for soil- and

water conservation measures will be identified in conjunction with the combined village committee.

For each prioritised area, the smallholders directly associated with the area will be promoted to form a

conservation group. Local knowledge on specific environmental degradation risks will be the primary

guide to the selection of interventions, supported by geographical information from the CPIA process.

36. From the participatory mapping exercise and in parallel to the investment agreements for the

irrigated area, a planning of soil and water conservation measures will be made. During

implementation, two yearly follow-up meetings will be held between agency staff and combined village

committee to review the management of the investments.

37. Investments in this sub-category specifically aim at:

Restoration of soil cover, targeting vulnerable grounds. A combination of erosion control

measures and good agricultural practices (sub-component 2.1) will be used to restore a

permanent and fertile soil cover.

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River bank management.

Introduction of river buffer zones

through demarcation and possible

fencing off provides protection against

erosion. People presently cultivating in

these buffer zones need to be

compensated by investing in

productive assets elsewhere.

Erosion control investments such as

vegetated contour bunds and gabions

for tackling rill erosion and plugging of

gullies, respectively. Erosion control

reduces siltation in downstream

irrigation canals, and conserves soil

moisture for crop production.

Reforestation of slopes through the

provision of seedlings. Especially

communities where improved cooking

stoves (sub-component 2.4) are

introduced will be supported in

community forestry and agro-forestry

using for instance fast-growing

nitrogen-fixing species like Tephrosia,

Senna, and Gliricidia; along with

species that can be used as fuelwood.

38. Implementation and joint reviews.

Implementation will be done through

conservation groups. Representatives of the

conservation groups will participate in the

planning meetings and will receive technical

assistance through extension services as

required. Annually, the status of the

protected and restored areas will be

assessed and protection groups will be

advised on the adequacy of the care and

maintenance that they have provided. The

review will be jointly carried out by

decentralised government departments and representatives from the combined village committee.

39. National catchment management guidelines for Malawi have recently been published, see:

http://www.catchmentguidelines.org.mw/). The guidelines aim at “village level” catchment

management (see figure below) which would more or less correspond to the scheme cluster areas

defined for PRIDE. The elaboration of the implementation guidelines for PRIDE, planned for late

2015, will refer to these new guidelines to fine-tune the approach proposed for PRIDE.

40. Scaling-up. The approach used in PRIDE follows a catchment management perspective, yet is

applied to a smaller area so that a notable local impact can be created within the available resources.

The investments in the scheme cluster areas will provide a model for comprehensive catchment

management, and could be scaled-up through mobilisation of additional resources.


41. The second project component focuses on the farm level and aims to establish climate-smart

good agricultural practices (sub-component 2.1); which take place in a context of improved market

http://www.catchmentguidelines.org.mw/

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linkages (sub-component 1.2). In addition, funds are reserved to promote private sector investment in

irrigation modernisation, and especially the introduction of pressurised irrigation (sub-component 2.3).

Finally, the use of improved cooking stoves is promoted as a generic measure for climate change

readiness and reduction of land degradation; and as an entry point for promotion of improved

nutritional practices (sub-component 2.4). Objectives and outputs for component 2 are:

Objective Outputs

d) Environmentally and economically sustainable agricultural

production systems adopted by smallholder households

on both rain-fed and irrigated lands

2.1 Smallholder farmers trained in good

agricultural practices on rain-fed and

irrigated land

2.2 Smallholder farmers linked to markets

2.3 Mainstreaming nutrition

42. PRIDE supports transfer of knowledge on good agricultural practices (GAPs) and market

linkages to smallholder farmers through trials and demonstrations. Demonstration fields in the scheme

cluster areas show good agricultural practices and their potential benefits; while better information

from the private sector on market potential and opportunities should increasingly inform smallholders’

crop choices. During the preparation stage, PRIDE will define in consultation with the existing

organisational structures and existing markets which crops to disseminate good agricultural practices

for, and which potential cash crop value chains to pursue. During this stage, beneficiaries form farmer

field schools and farmer business schools.

Component 2.1: Good Agricultural Practices

43. The introduction of good agricultural practices by PRIDE builds on the experience gained in

SAPP. PRIDE will focus on adaptation and dissemination of existing climate-smart Good Agricultural

Practices. GAPs to promote include: utilisation of climate information services; conservation

agriculture (CA), irrigation optimisation, use of improved inputs, application of integrated pest

management and reduction of post-harvest losses.

44. The 15 scheme cluster areas are populated by an estimated 19,500 smallholder households. It

is assumed that 80% will engage with the Programme through 20-member Farmer Field Schools

(FFS). The Programme will train and support 780 Farmer Field Schools and the lead farmers selected

by the smallholder farmers in the Farmer Field Schools. In addition, each Farmer Field School

participates every two years in a farmer-to-farmer study tour.

45. FFSs are typically mixed groups and are established on an informal basis. Where available,

existing FFSs will be used. PRIDE ensures that youth and female smallholder farmers are

represented in the FFS. The lead farmer-role rotates among interested members and is explicitly open

to women and youth.

46. Climate-smart agriculture / good agricultural practices: The UN Food and Agriculture

Organisation describes climate-smart agriculture, forestry and fisheries (CSA), as a contribution to the

achievement of sustainable development goals. CSA integrates the three dimensions of sustainable

development (economic, social and environmental) by jointly addressing food security and climate

challenges. CSA is composed of three pillars: (i) sustainably increasing agricultural productivity and

incomes; (ii) adapting and building resilience to climate change; and (iii) reducing and/or removing

greenhouse gas emissions, where possible. PRIDE will focus its extension efforts on the

dissemination of good agricultural practices, which fall within the definition of climate-smart

agriculture. For the moment, the following categories of climate-smart good agricultural practices have

been identified:

Use of climate information services – Farm decision should increasingly be informed by

accurate and localised information on weather and weather patterns. PRIDE will invest in an

assessment of the existing agro-meteorological network and will help upgrade the same based

on the needs of smallholder farmers, and especially in reflection of the need to optimise

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irrigation releases. PRIDE will purchase 100 portable weather forecasters, which can be

distributed to well-performing WUAs, extension field offices, and young farmers that are eager

to play a role in further information dissemination. Training will be given in the interpretation and

the use of weather and climate information. Communication channels such as community radio

programmes, internet and mobile phones will be utilised to disseminate the information. In

addition, PRIDE will assess and upgrade the status of the existing agro-meteorological network

based on the needs of smallholder farmers.

Optimisation of irrigated agriculture – Precise and timely application of irrigation water can

produce crops in predictable quantity, quality and time. Good preparation of, and care for,

irrigated soils help maximise the storage and use of soil moisture. Optimisation of water

deliveries helps bring the maximum possible command area under irrigation. Irrigation is

relatively new to Malawi, and government extension services are mainly focussed on rain-fed

farming. PRIDE will invest in research trials, technical assistance and extension services to

provide guidance to smallholder farmers turning to irrigation.

Conservation agriculture – Conservation agriculture (CA), as defined by FAO, is a concept for

resource-saving agricultural crop production that strives to achieve acceptable profits together

with high and sustained production levels while conserving the environment. Conservation

agriculture has three principles: minimum mechanical soil disturbance; creation of a permanent

organic soil cover protecting the top soil; and crop rotation with more than two species. PRIDE

uses the experience of SAPP, which promoted demonstration sites to show the impact of CA,

including zero tillage, residue retention, basin planting, crop rotation, mulching, composting and

intercropping with leguminous species. CA in agricultural plots complements the soil- and water

conservation measures implemented in the scheme cluster areas under component 1.

Access to and use of improved inputs – This GAP aims to boost productivity through

introduction of high-yielding, short-maturing, drought-resistant varieties. In addition, availability

and correct use of inputs such as seeds (e.g. inoculated legumes), fertilisers, natural herbicides

/ pesticides and agro-chemicals will be promoted. PRIDE will help engage smallholder farmers

as contract farmers for seed multiplication, in cooperation with a qualified seed company.

PRIDE will train agro-dealers on the correct use (quantity, handling and timing) of inputs. Other

topics might be micro-packaging of inputs and timely procurement and delivery. Training of

agro-dealers would enable these to train smallholder farmers, as and when inputs are

purchased. The Programme aims to supply seeds of selected crop varieties to 24 farmers’ seed

multiplication groups, resulting in four multiplication fields in each of the six districts. MOAIWD

provides technical supervision and is responsible for seed certification.

Integrated pest management – is defined as ‘the careful consideration of all available pest

control techniques and subsequent integration of appropriate measures that discourage the

development of pest populations and keep pesticides and other interventions to levels that are

economically justified and reduce or minimise risks to human health and the environment’

(FAO). IPM emphasises the growth of a healthy crop with the least possible disruption to agro-

ecosystems and encourages natural pest control mechanisms. Attention to pest management is

needed, as irrigated agriculture enables larger tracts to be grown in a single crop. PRIDE

provides funds for an inventory of existing IPM practices relevant to the crops grown in the

Programme area; and for adaptive research on IPM practices. Based on this, IPM Good

Agricultural Practices will be formulated and disseminated.

Post-harvest management – Post-harvest losses are high, though figures differ per crop.

Rather than increasing pressures on soils, investment in post-harvest management contributes

to enhancing the marketable yields. Existing practices, such as wetting peanuts to increase

weight, may be detrimental as – in the case of this example – growth of fungi is promoted,

which in turn produce unacceptably high concentrations of aflatoxin. PRIDE will transfer

existing knowledge – tailor-made for each crop – to improve timing of harvest, grading of

produce, good storage practices and timing of collection, in order to help reduce losses. Since

several processing companies, traders and associations have storage facilities in the country, it

would seem that larger-scale central storage is already addressed by the market. This implies

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that storage is a commercial activity worthwhile investing in. Local low-cost improved storage

facilities for smallholders will, however, be demonstrated and promoted.

47. Documentation of GAPs. PRIDE aims to define standardised documentation on the GAPs that

it promotes. The aim is to make available well-developed material – primarily to the extension cadre

and lead farmers – for a limited number of GAPs. The GAP fact sheets contain highly visualised

information on the proposed practice and on its relevance and anticipated impact. For each GAP,

information on productivity and profit will be complemented by information on the nutrition impact and

on the importance of diversified sources of nutrition (see also component 2.3).

48. Farmer to farmer extension work: The use of lead farmers has already been proven under

IRLADP and SAPP, and by NASFAM. The lead farmers concept shall be integrated in Farmer Field

Schools, and financial support of the project provided to the group as a whole for their common

activities. Lead farmers – female and male – will initially be identified in consultation with the

leadership and community representatives in the scheme cluster areas. Lead farmers will benefit from

the provision of demonstration packages and from training to build their knowledge of different GAPS

and their skill in extension and communication. In return, the lead farmers will be asked to form

Farmer Field Schools (FFS) comprising representatives from twenty households each. Through the

FFSs, selected graduating farmers with technical capacities, trusted by their peers and leadership

characteristics will form the new lead farmers (facilitators) and establish their new FFS farmers group.

FFSs should have a clear curricula designed for specific crops/GAPs that is jointly developed by

extension, research and the FFS specialists. FAO – Malawi has been already approached and has

offered to assist PRIDE and also the ongoing SAPP in developing the FFS curricula and


49. The approach is expected to create better adaptation of the issues discussed/addressed and

may enable FFS members to rotate in the role of lead farmer, so that different smallholder can

specialise in different practices. Demonstration fields will enable lead farmers to show and discuss the

results of newly introduced GAPs with smallholder farmers in the Farmer Field Schools. In addition to

farmer-to-farmer learning in the Farmer Field Schools, exchange visits will be arranged (see also

component 1.1); especially to show farmers the potential of irrigated agriculture.

50. Agricultural Extension: The performance of the FFS will be guided by extension agents, who

advise on the GAPs and monitor the group’s composition and functioning. PRIDE will on preference

make use of the MOAIWD, so that Agricultural Extension Development Officers (AEDOs), with

support from Agriculture Extension Development Coordinators and District Officers, will train the lead

farmers. PRIDE will invest in order to enable the performance of the extension services: training on

agricultural practices and gender aspects thereof, provision of equipment, including ICT, field gear,

transportation costs and motorcycles (especially for female extension workers). Where the agricultural

extension service is not sufficiently staffed18

to provide full coverage; or where specialised knowledge

(e.g. irrigated agriculture, cooking stoves) is lacking in the service, PRIDE will complement the

extension services by engaging other service providers (NGOs, private sector).

51. Training and extension materials and use of ICT. PRIDE will finance the development and

distribution of high quality training and extension materials including brochures, posters, and leaflets

and the development and broadcasting of extension services by radio. Each GAP will be well-

documented. PRIDE also invests in the use of ICT in extension services enabling quick and cheaper

dissemination of information and giving agriculture a modern image, especially for youth.

52. Inventory and adaptive research – PRIDE relies on existing technology and does not invest

in basic research into new Good Agricultural Practices. Transforming existing GAPs into practices with

demonstrable benefits would in some cases still require two actions: the inventory of potential GAPs,

based on experiences elsewhere in the region; and adaptive trials on farmer fields to confirm the

potential of the new practice. PRIDE will outsource inventories and trials, in order to develop a

sizeable portfolio of Good Agricultural Practices. Special areas of attention, in which to define GAPs,

18

Roughly one-third of the positions in the extension services are vacant, due to GOM’s inability to fund all positions.

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are integrated pest management and optimisation of planting times and irrigation turns in irrigated

commands.

53. Mechanisation. The rental of agricultural machinery on a professional basis is new to Malawi.

Mechanised traction would contribute to storage and availability of soil moisture. Traction helps break

the hard soil layer that has developed just below the root zone by years of superficial soil tillage.

Breaking this layer increases infiltration of rainfall runoff and enhances the depth of the root zone.

PRIDE will purchase two tractors equipped with rippers, to primarily help develop the irrigated

commands in the two regions where PRIDE is active. PRIDE will outsource the operation and

maintenance of this equipment to commercial companies that are able to manage a rental service

with experienced operators and assured maintenance. Smallholder farmers, WUAs and producer

groups and others may hire the service to improve their soil characteristics.

Component 2.2: Market linkages

54. Promotion of market linkages builds on the work undertaken by RLEEP. Presently, it is

estimated by NASFAM that smallholder farmers produce roughly 60% for their own nutritional needs

and 40% for sale. When part of the holding gets irrigated, these figures will change as irrigation allows

for an intensified production under near optimal circumstances.

55. PRIDE aims to link smallholder farmers to existing markets or market opportunities. Better prior

information from the private sector enables farmers to decide which products to grow, to produce

according to the desired quality and at the preferred time. Doing so enables them to get better deals

from the traders. Optimisation of the value chains for key products enable a better match between

production and demand, which would benefit producers, markets and consumers. As MOAIWD has

only few staff engaged in marketing, PRIDE will mobilise service providers for the implementation of

this sub-component. PRIDE will closely analyse the offers of the service providers on their market

experience and intelligence; staff capabilities; inclusiveness of the proposed approach (women and

youth); and adequacy of the proposed work plan.

56. A review of existing Value Chain Analyses and an assessment of market potential led to the

following preliminary selection of crops for which value chains and market linkages would be

strengthened by PRIDE:

High-value cash crops – legumes (pigeon peas, soy beans and peanuts); sunflower for the

internal market and for export; and potatoes for the internal market. These crops are processed

in Malawi; the internal demand is not fully met as yet; and for legumes there is a potential for

export. Export of peanuts can be promoted, especially when the present high levels of aflatoxin

in the product are addressed. Production of sunflower can be optimised if seed of improved

varieties is imported;

Cereals like rice and wheat – These are grown for the internal market and substitute imports.

Both crops have some potential under irrigation, but their financial feasibility throughout the

year needs to be investigated;

Fruits and vegetables – these can be cash crops but revenues depend heavily on the season

and on distance to markets as these products are perishable and the market is periodically

oversupplied;

Cassava – Starch is presently imported, while cassava is already established as a staple crop

and it can be grow on rather poor soil.

57. Farmer Business Schools. The Programme focuses on training groups of smallholder

farmers, known as Farmer Business Schools (FBS), on the basics of commercial crop production

(farm budgets, cost price calculations, use of weights and measures, quality control, grading, storage

and packaging, market intelligence). Where possible, FBSs will coincide with existing organisations

(i.e. created by other programmes) but PRIDE will insist that youth and female smallholder farmers

are represented in crucial positions. The Farmer Business Schools start by inviting private sector

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companies to the scheme cluster areas to gather market information, select crops on the basis of

market information, and to identify preferred trade channels.

58. Each Farmer Business Schools delegates a representative to group meetings with the various

companies, traders and processors. For all representatives of the 780 Farmer Business Schools,

PRIDE organises three group meetings with the private sector over a period of six years to ensure

that the companies and FBS get used to staying in close contact.

59. Producer Groups. FBSs promote cooperation between smallholder farmers to increase their

negotiating power towards input suppliers, traders and processors. Farmers that have received the

basic training will be stimulated to form producer groups, to jointly market their produce and to benefit

from a stronger negotiating position vis-à-vis traders and processors. Producer groups are in principle

loosely organised, as doing business with traders and processors does not require the group to have

a legal entity. Before focusing on formalising their organisational status; groups need to show they

meet their obligations: i.e. delivery of minimum volumes of stipulated quality at agreed times. Only

when it would create better market opportunities, will PRIDE support groups to obtain a legal persona,

such as Agricultural Cooperative.

60. PRIDE hires a service provider to train the FBSs and Producer Groups. Training is provided

over a 3-year period. During this period, the intensity of training will gradually decrease assuming that

from then on the producer groups can function independently.

61. Commodity platforms. A commodity platform represents all actors in a value chain. In a

commodity platform, the value chain actors can collaborate to assess and carry through potential

interventions in the value chain. Options to be reviewed by the platform include market access,

product development, improving productivity, and efficient transactions along the value chain. PRIDE

will facilitate commodity platforms for products or product groups that are relevant to smallholder

farmers in the Programme. Value chain actors to be represented in a commodity platform include

smallholder farmers, producer groups, traders, processors, banks and micro finance institutes,

Ministries and specialised Government Agencies (e.g. National Bureau of Standards), NGOs,

commodity research entities, National Business Women’s Association, Chamber of Commerce, etc.

Commodity platforms already exist for roots and tubers, legumes, dairy and rice. PRIDE supports

existing platforms and to-be-created platforms with studies, training, development of materials, and a

value chain start-up facility; but require the parties represented in the platforms to invest as well, both

in the financial autonomy of their platform and in interventions in the value chain. PRIDE support aims

to help achieve full financial autonomy for the platform in a matter of years.

62. Value Chain Analyses and Market Studies. PRIDE will commission studies to help enhance

the market access and market benefits for smallholder farmers. Market studies are undertaken to

determine the market needs, market size and the competition for a specific commodity, and thereby

confirm the choice – during the initial stages of engagement in a scheme cluster area – of which

commodities to focus on. Value Chain Analyses (VCAs) describe the production chain from field to

table, and the network of actors involved in it. VCAs map processes and structures, identify actors,

and analyse how benefits are distributed. Moreover, a VCA identifies potential interventions in the

value chain, which help generate benefits for all actors in the value chain, including primary

producers. PRIDE will commission both market studies and value chain analyses.

63. Value Chain Start-up facility. PRIDE includes a Value Chain Start-up facility which can be

accessed for specific investments that help improve the value chain and especially the benefits it

generates for smallholder farmers. Investments could include development of tracking and tracing

systems; definition of new product standards, training on quality systems, etcetera. The Value Chain

Start-up facility cannot be used to share in commercial risks; the investments are aimed at enhancing

the efficiency of and value creation along the value chain. Commodity platforms will be encouraged to

submit proposals to the PCO.

64. Irrigation technology window. Finally, PRIDE will help pilot the introduction of in-field

irrigation equipment, such as drip irrigation and sprinklers, by the private sector in Malawi. To this end,

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IFAD will fund an ‘irrigation window’, under the Malawi Innovation Challenge Fund (MICF). This is a

DFID-funded matching grant mechanism, set-up and managed by UNDP. IFAD’s co-funding will

enable the expansion of an irrigation window, whereby eligible private sector companies – preferably

a consortium of commodity wholesalers and irrigation equipment suppliers – can compete for funding

on the basis of submitted business cases. The idea would be for wholesalers to pre-invest in

modernisation of smallholder irrigation in one or more blocks of an irrigation scheme, while the

equipment supplier installs and helps operate precision irrigation equipment. Such equipment enables

smallholder production to more reliably deliver sizeable quantities of high quality and quantities at a

pre-defined time. An allocation of up to USD 2.5 million has been earmarked from PRIDE to support a

specific Irrigation Window for linking private sector commodity wholesalers to irrigation equipment

suppliers, to enhance the former’s sourcing from smallholder farmers. The Irrigation Window has

already received catalytic funding from DFID of USD 0.5 million to be launched during 2015.

Component 2.3: Mainstreaming Nutrition

65. Child stunting and anaemia are endemic in Malawi and their reduction has so far – despite

macro-economic progress – been slow. PRIDE intends to contribute to scaling-up nutrition (SUN) by a

combination of actions. The aim of these efforts is to reduce child stunting by 80% at the end of the

Programme period.

66. Dietary diversity survey. Stunting is the most relevant nutrition indicator for the Programme,

but other relevant indicators will be tracked as well, e.g.: body mass index (BMI) of women of

reproductive age (15-49); Women Dietary Diversity Score (WDDS) and time spent on accessing food,

fuel. WDDS is a proxy indicator for micronutrient adequacy and also a means of measuring impact on

dietary diversity. PRIDE will collaborate with FAO to conduct the dietary diversity survey utilizing the

FAO guidelines on dietary diversity scores. Secondary data on nutrition will be derived from a/o as the

Malawi Demographic Health Survey (MDHS), Multi-cluster Indicator Survey and National

Micronutrient Survey.

67. Scaling Up Nutrition (SUN).The PRIDE approach to nutrition is aligned to the approach that is

embraced by the GOM and by other development partners. GOM has established multi-sectoral

coordination of nutrition programme implementation at national, district, village levels and is planning

to deploy nutritionists in the local councils to improve coordination, monitoring and reporting. The

national Nutrition Education and Communication Strategy (NECS) aims to strengthen and harmonize

nutrition messages and practices from national to grassroots level. In the scheme cluster areas,

PRIDE will engage Food and Nutrition Officers of the Department of Agricultural Extension Services.

At national level, PRIDE will associate with the UN Malawi Nutrition Network and other key partners.

68. Extension services. In principle, extension and training on nutrition will be carried out by the

agricultural extension system, though PRIDE may engage other service providers to complement the

capacity of the government system. Services will be provided to the target group through lead farmers

through established farmer groups, care groups and village associations. Lead farmers are trained by

AEDOs who in turn are trained and supervised by agricultural extension development coordinators

(AEDCs) at EPA level. These AEDCs are coached by Food and Nutrition officers and other relevant

specialists at district level. PRIDE will ensure adequate facilities for female extension workers. The

nutrition focus of agricultural extension will be made tangible in three ways:

By integrating a nutrition perspective in all GAPs promoted and documented by the Programme

(see component 2.1);

By promoting diversified and improved nutritional production and consumption (integrated

homestead food production);

By supporting the introduction of improved cooking stoves, combined with nutrition education.

69. Integrated homestead food production (IHFP) is to facilitate adequate food consumption at

household level. IHFP is an approach to improve diverse food access (primarily proteins, vitamins and

minerals), and to share nutrition information. Nutrition education will encourage adequate

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consumption. Capacity will be developed by supporting training of trainers who can roll-out the toolkit

on IHFP to the villages. PRIDE will collaborate with FAO on this activity.

70. Improved cooking stoves. Rural communities cook over open fire, using locally available

firewood. This practice is detrimental to the already scant forest cover; has bad effects on health due

to smoke combined with lack of ventilation; and requires mainly women and children to spend scarce

time on fuelwood collection. Improved cooking stoves form a climate-smart answer to these problems.

Improved cooking stoves increase the efficiency of fuel wood use by up to 60% compared to open

fires, and thereby reduce the need for women and girls to gather and carry heavy loads of firewood

over long distances. Cleaner, more efficient cooking stoves reduce exposure to smoke. The promotion

of improved cooking stoves forms a generic measure for sustainable land management.

71. From a nutrition perspective, time saved in fuel collection and cooking provides an opportunity

to invest time in the process of cooking itself. During the session that promote the improved cooking

stoves and during subsequent sessions on maintenance; training will be imparted on nutrition and

food preparation. Women form the target group so female extension workers are required.

72. Hardware parts for a total of 15,000 improved cooking stoves and training (installation,

maintenance, nutrition) to a matching number of households will be provided under a single contract.

The target group is strictly female, which requires the involvement of female extension agents. The

women will be offered training sessions every half-year over a 2-year period. Thus, the training on

nutrition and food preparation can adequately reflect seasonal differences between rainy and dry

seasons.

73. PRIDE’s promotion of improved cooking stoves aims to ensure that a private sector able to

produce and market the materials and support services for improved cooking stoves emerges.

Service providers involved in the promotion of improved cooking stoves need to demonstrate how

they intend to establish improved cooking stoves as a regular product in the market. The possible

availability of carbon credits for improved cooking stoves – reflecting their impact on the reduced use

of fuel wood – may be considered to improve the business case for local production and supply, but

the Programme will not assume this, or invest in it, as the costs for documentation, registration and

verification may offset potential carbon revenues from unstable markets. Interested service providers

will, however, have to submit their long-term financing model as part of the tender.

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Appendix 5: Institutional aspects and implementation arrangements

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Introduction

1. PRIDE aims to change the situation in which rain-fed farming systems in Malawi are locked, by

simultaneously enhancing the natural resource base and reorienting agricultural practices. Irrigation,

soil conservation good agricultural practices help enhance resilience to the effects of climate change,

whereas irrigation, market linkages and good agricultural practices help enhance resilience to food

crises and economic shocks. PRIDE will be managed separately from the ASWAp framework but it

will coordinate fully with ASWAp to ensure full alignment to government investments and policies.

PRIDE will be implemented in line with GOM’s decentralisation policy. Together, these provide a

framework for service delivery by the districts to the communities. Service delivery starts with

participation of the communities in decisions central to their welfare: where to develop irrigated

commands, where to invest in catchment management; which households to be allocated access to

land? what markets to aim for; which agricultural practices to improve; which households to benefit in

such activities? Improved delivery of services to the communities also requires enabling support to

decentralised structures of the relevant ministries and, where need, supplementing their services by

outsourcing.

Organisational Framework for Programme Implementation

2. Effective Programme implementation will require mobilisation and involvement of different

government and private institutions and effective participation of the targeted households; both with

clearly defined roles and responsibilities at the various levels of operation.

3. The organisational chart (figure 1) shows the main actors in the delivery of services, including

structures specifically added for implementation of PRIDE.

Figure 1: Organisational chart 1- coordinated services

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4. It is important to stress that the figure combines a conventional organogram with a chart

showing relationships. Solid lines signify either hierarchical relationships (e.g. between MOAIWD and

DOI) and service agreements (i.e. between the PCO and service providers); dotted lines signify

support agreements, between the PCO and the decentralised government services, which’

performance it supports. The second point of attention when reading the figure is that the layer

labelled ‘decentralised’ is in fact not a single layer, but consists of regional (ISD, ADD), district and

sub-district (EPA) layers. Whereas irrigation services are present at regional and district levels,

agricultural extension services are represented at all three levels.

5. MOFEPD. The Ministry of Finance, Economic Planning and Development represents GOM to

the financier on matters pertaining to the Programme, and enters the Programme Agreement on

behalf of GOM. MOFEDP is responsible for financing and monitoring and evaluation of government

development projects. The main tasks are: (i) the receipt from IFAD and the timely disbursement of

funds; (ii) Monitoring budget performance; and (iii) ensuring that the government contribution to

PRIDE is made available in a timely manner. Furthermore, MOFEPD coordinates implementation of

MGDS II and interacts with ministries, government departments and agencies involved in PRIDE to

ascertain whether and how PRIDE is contributing to MGDS II.

6. A number of Ministries participate in PRIDE implementation: MOFEPD, MOAIWD, MLGRD,

MLHUD, and MONREM. Senior representatives of these ministries provide strategic oversight through

a Programme Steering Committee (PSC) under the chairmanship of the PS (Irrigation & Water

Development) of the Ministry of Agriculture, Irrigation and Water Development (not shown in figure 1).

7. MOAIWD. The Ministry of Agriculture, Irrigation and Water Development is the lead agency for

Programme implementation. It coordinates PRIDE activities within the ASWAp framework and as

such prevents overlaps between (donor-funded) programmes, including SAPP and RLEEP; and

assures coherence in approaches and cross-learning between initiatives. MOAIWD vests the day-to-

day Programme oversight in the Department of Irrigation.

8. DOI ensures coherence with IMPIF, draws lessons from Programme implementation for IMPIF

and ensures cross-learning in the irrigation sector. DOI will establish a dedicated stand-alone

Programme Coordination Office (PCO) for the coordination of the Programme implementation. The

PCO is responsible to mobilise the agencies and organisations involved, or to be involved, in the

delivery of services to the target households. This includes engaging, and where need be supporting,

line agencies to deliver the services within the framework of PRIDE; as well as the enrolment of

additional and specialised service agencies.

9. The PCO is staffed by dedicated and highly qualified personnel who are recruited from

government or from the labour market. Recruitment of key PCO staff requires prior consent from

IFAD. The PCO will include a senior Programme Director, a Procurement specialist, a Financial

Management specialist, a WUA specialist, an Environmental Coordinator, A Gender and Targeting

specialist, an Irrigation Engineer, an Agriculture Specialist, a Value Chain Specialist and a Planning,

Monitoring and Evaluation specialist. The latter will be charged with Knowledge Management as well.

The staffing of the PCO is presented in table 1, and its structure is shown in figure 2.

Table 1: PCO staff, including the components to which their cost is charged

# Designation Cost component

1 Programme Director Programme management

Financial Management and Procurement Support Staff

2 Procurement specialist Programme management

3 Financial Management specialist / controller Programme management

4 Accountant Programme Management

5 Assistant Procurement Officer Programme management

6 Assistant Accountant Programme management

Technical coordinators

7 WUA specialist Component 1.1

8 Environmental Coordinator Programme management

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# Designation Cost component

9 Gender and Targeting specialist Programme management

10 Irrigation Engineer Component 1.2

11 Agriculture (and extension) Specialist Component 2.1

12 Value Chain Specialist Component 2.2

13 Planning, Monitoring and Evaluation specialist Knowledge management

Administrative and logistic support staff

14 PM&E Officer Assistant Programme management

15 Administrative assistant Programme management

16 Office Assistant/Receptionist Programme management

17 Driver (4) Programme management

Programme Facilitation Offices

18 Programme Coordinator (North) Programme management

19 Programme Coordinator (South) Programme management

20 Assistant Coordinator North Programme management

21 Assistant Coordinator South Programme management

Figure 2: Structure of the Project Coordination Office

10. The PCO is staffed by dedicated and highly qualified personnel who are recruited from

government or from the labour market. Recruitment of key PCO staff requires prior consent from

IFAD. The PCO will include a senior Programme Director, a Procurement specialist, a Financial

Management specialist, a WUA specialist, an Environmental Coordinator, A Gender and Targeting

specialist, an Irrigation Engineer, an Agriculture Specialist, a Value Chain Specialist and a Planning,

Monitoring and Evaluation specialist. The latter will be charged with Knowledge Management as well.

11. The PCO will: (a) oversee the preparation and submission to IFAD of PRIDE AWPBs;

(b) coordinate through the structures described here the PRIDE implementation at the different levels;

(c) support concerned departments, districts and other relevant organisations in implementing PRIDE

activities; (d) assign qualifying service providers to deliver performance-based and sustainability-

oriented services; (e) coordinate with relevant institutions at local level (see later) to ensure effective

implementation of PRIDE activities; (f) monitor and evaluate the performance of Programme activities

in all participating areas; (g) prepare and submit six-monthly progress reports and periodic reports;

(h) develop and apply systems and guidelines to ensure that PRIDE is implemented according to the

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GOM and IFAD procedures; and (i) ensure compliance by all actors involved in PRIDE to agreed

standards, protocols and agreements.

12. The PCO will be assisted by a Technical Advisory Team representing the departments involved

in project implementation, including Land Resources, Extension, Research (under MOAIWD), as well

as the Department of Land (Ministry of Lands, Housing and Urban Development), the Environmental

Affairs Department (Ministry of Natural Resources, Environment and Mining); the Debt and Aid

Department of the Ministry of Finance, Economic Planning and Development; and others as needed.

13. MLGRD. The Ministry Local Government and Rural Development is responsible for government

structures at the local level. MLGRD will: (i) provide policy and technical guidance on how PRIDE

would interface with local structures for effective implementation (see also later); (ii) supervise

implementation of sub-projects and coordinating financial management at the local level; and

(iii) through the RLEEP, assist in approaches and activities related to market linkages and value chain

development under sub-component 2.2.

14. MLHUD. The Ministry of Lands, Housing and Urban Development is responsible to provide

secure land tenure for smallholder farmers involved in the target irrigation schemes and promote

equitable land access of target beneficiaries. Existing practices developed under IRLADP will form a

point of departure, but the emphasis will be – more than before – on devising arrangements that

provide smallholders a continues access to irrigated land, both over seasons and over years.

15. MONREM. The Ministry of Natural Resources, Environment and Mining (i) ensures that PRIDE

implementation is in compliance with the Malawi Environmental Management Act (1996); (ii) oversees

the development and implementation of the Environmental and Social Management Plans;

(iii) supports all climate change adaptation activities; and (iv) has an oversight role of monitoring their

implementation to establish whether these outlined measures contribute to the resilience of

communities with respect to the identified climatic events, such as droughts and floods.

16. Private Sector and NGO service providers will be engaged by the PCO to deliver specialised

(e.g. irrigation design) or additional services (e.g. where agricultural extension services are

understaffed) as required for the successful implementation of the Programme. Services are procured

through competitive bidding. Contracts are performance-based and are subject to regular supervision

and review. Service providers would include: social organisers, engineering and agricultural

consultants, design and supervision firms, civil works contractors, firms specialised in social and

environmental due diligence (including at times resettlement), agencies supporting smallholder

agriculture and market linkages, specialists in improved cooking stoves, business development

services, study consultants for market and value chain analyses, and others as required.

17. The market for services will be stimulated to aim at sustainable outcomes. The PCO will play an

important role in defining – in consultation with the market parties – contracts and conditions that

share the responsibility for the Programme objectives with the service providers. To this end, at least

one integrated Design – Build – Transfer contract will be developed and tested for the establishment

of smallholder irrigated land. Also, when providing material support – such as the provision of

improved cooking stoves or tractor services – contracts will be geared to harness market incentives

and aim for establishment of self-financing services.

18. The existing and additional agencies supporting the scheme cluster areas work from a known

mandate but parallel interventions may cause some loss of efficiency. Therefore, they will form an

Implementation Team per scheme cluster area. In order to contribute to effective coordination and

communication at the decentralised levels of Programme implementation. – and given the spread to

northern and southern regions – the PRIDE PCO will include two Programme facilitation offices,

staffed by a Coordinator for two ISDs.

19. A parallel development pursued by PRIDE – but not shown in the above figure – is the support

to Commodity Platforms. These are platforms for a specific product (e.g. rice) or group of products

(e.g. legumes) that represent all stakeholders in the value chain of that commodity. These platforms

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seek to optimise the value created by the commodity, whether by addressing bottlenecks at

production, processing or marketing.

Organisational Framework for Beneficiary Participation

20. Successful delivery of services requires active and well-organised participation by the

communities in the scheme cluster areas. Structures are needed whereby communities participate

effectively in preparation, implementation and joint review. Figure 3 gives a schematic presentation of

the structures through which target households participate in the Programme.

Figure 3: Organisational chart 2 – coordinated participation

21. PRIDE will enter the selected scheme cluster areas through existing leadership structures at

community level; i.e. the traditional authorities (chiefs) and the Village Development Committees.

Backing of these levels is not a formality, but an essential step to secure long-term support for the

transformation that PRIDE intends to bring to rural communities. The existing leadership carries

already responsibilities for an ambition similar to the programme goal and objective: i.e. a well-

nourished and prosperous rural community for now and for generations to come. By focussing on this

level of ambition, the existing leadership – possibly with some reassurances from MLGRD – will

provide backing to the Programme.

22. For reasons of efficiency, the existing leadership (Chiefs and VDCs) will be asked to assign a

combined village committee specifically for the preparation, implementation and review of the

Programme in a selected scheme cluster area. This committee needs to be well-mandated and will be

charge by the existing leadership with a responsibility towards achieving the Programme outcomes:

new infrastructure for soil and water management and new practices in agriculture and marketing.

PRIDE will prepare materials that help explain the mandate of existing leadership and combined

village committees; and support the combined village committee in its interactions with their

community at large.

23. The combined village committee takes part in preparing and reviewing the main lines of the

activities in the scheme cluster areas. To this end it will initiate several structures through which

smallholder farmers can participate in the detailed planning and implementation of the Programme.

These structures are different in nature: a unified and well-structured organisation is required for

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handling land and water resources within the to-be-developed irrigated command areas; whereas

various loosely organised producer groups can coexist in parallel.

24. For detailed planning of the irrigation works, of the allocation of land access and of the capture

and distribution of water an interim committee (WUA establishment committee) will be formed, which

is charged with (i) the organisation and establishment of a Water Users’ Association (including a

constitution and byelaws and allocation of responsibilities); (ii) ensuring user views and knowledge is

reflected in the scheme design; (iii) the formulation and negotiation of a land and water agreement,

which secures land access and compensates project affected people; and (iv) a scheme investment

agreement, which specifies responsibilities during and beyond scheme construction.

25. When all agreements (constitution & byelaws, land and water agreement, scheme investment

agreement) are ready final draft, a Water Users’ Association is to be formed, representing all

households benefitting from the irrigation system. The WUA’s general assembly elects and mandates

an executive committee, which forms several task committees, including a construction supervision

committee (which in due course becomes the O&M committee); a financial committee; a land matters

committee and others as required.

26. The WUA supervision committee will liaise with the contractor to maintain irrigation activities

during the construction period and expediting completion of the works. The WUAs will participate in

construction supervision and final certification, and be trained to monitor the construction activities,

identify and resolve problems which may arise between the private contractors and water users,

understand the process and procedures for construction scheduling and assessment of damages to

private land or property during the construction. This will put the WUA in a strong position to take on

the operation and maintenance of the scheme. The construction schedule would be discussed with

WUAs leadership to allow water users make any necessary contingency plans for irrigating their land.

Similarly, changes in the construction schedule will be with prior consensus of the WUA leadership.

27. While the organisational foundations are fairly heavy for the irrigation scheme; the works for

preventing and reversing land degradation take place on a different organisational basis. The

combined village committee is responsible for prioritising intervention areas. PRIDE will review these

against geographical information and feasibility. For each to-be-addressed intervention area, the

combined village committee will for a conservation group, comprising representatives of smallholder

households willing to maintain the to-be-implemented works in return for reaping the opportunities that

the intervention area may offer. The conservation group is bound to make wise use of the resources;

which includes patchwork repair and maintenance. In return, they benefit from wood- and non-wood

forest products and cut & carry fodder, as the case may be.

28. The dissemination of good agricultural practices relies on the involvement of lead farmers. The

combined village committee will make an initial selection of farmers wiling to coach a group of

smallholders in return for knowledge of good agricultural practices; capacity building and

demonstration starter packages. The lead farmers can benefit from Programme support (through

extension services of government of non-government agencies) provided she or he enlists as their

audience a group of smallholder farmers representing twenty households. This may well be an

existing grouping (e.g. a FFS established by another programme or an existing group such as a youth

committee).

29. The representatives of the twenty households form a Farmer Field School (FFS). They start of

on a first GAP, which will be demonstrated by the lead farmer in her or his own fields. Subsequently,

members can take turns in the lead farmer role, as new GAPs are being offered by the Programme

through the extension services.

30. For market linkages a dual approach is followed. At first – through facilitation by the combined

village committee – Farmer Business Schools (FBSs) will be formed, that are supported in doing a

market analysis and in basic crop budgeting. The FBSs will be helped to seek interaction with traders

at local, regional and national level, to better their prospects for the sale of products meeting the

prevailing requirements for quality, quantity and timeliness.

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31. Smallholders engaged in a specific crop are promoted to form Producer Groups, which are

encouraged to bulk, grade and transport their products jointly; and which can benefit from negotiating

better deals with the market parties. Representatives of the producer groups participate in the

commodity platforms that seek new opportunities for creation of surplus along the value chains for

specific product groups.

Implementation Arrangements (selection)

32. Implementation of PRIDE will be guided by a number of work processes (or procedures). For a

large part these have been describes in appendix 4 (Detailed programme description). In the present

appendix (#5), processes with respect to Programme management are identified and briefly described

in so far these are not included in appendices 6, 7 and 8. These address work procedures for,

respectively planning, monitoring & evaluation and knowledge management; financial management

and disbursement arrangements, and; procurement. Taken together, appendices 4, 5, 6, 7 and 8 lay

the basis for the PRIDE Programme Implementation Manual (PIM). A draft table of contents of the

PIM is included in appendix 11.

33. Policy alignment. PRIDE will be fully coordinated with the ASWAp framework under the

earmarked funding mechanism. This in practice would rule out duplication of services in one area.

Moreover, the ASWAp framework provides possibilities for cross-learning between initiatives and for

upscaling of successful approaches. The process of policy alignment to ASWAp is managed by the

MOAIWD. Alignment to the Irrigation Master Plan and Investment Framework is managed by DOI;

and offers similar advantages and opportunities. While being fully coordinated with ASWAp, PRIDE

will be managed independently.

34. Portfolio synergies. Closely related to the above policy alignment is the effort to ensure that a

single donor – in this case IFAD – focusses on a coherent portfolio of development projects or

programmes. To consolidate and rationalise the IFAD-supported portfolio in Malawi, implementation

of the different Programmes within the portfolio (PRIDE, SAPP and RLEEP) will be interlinked so that

the Programmes can fully exploit their respective comparative advantages. This will enable

specialisation by the different Programmes in their core areas of irrigation and catchment

management (PRIDE), good agriculture practices (SAPP), agricultural commodity value chain

strengthening and market linkages (RLEEP), and rural finance services (for a future rural finance

Programme). This will exploit the synergies within the portfolio, eliminate duplications and contribute

to efficiency.

35. Programme steering. The PS (Irrigation & Water Development) of MOAIWD will convene and

chair a Programme Steering Committee (PSC), with senior participants from the Ministries identified

above. Based on the semi-annual progress reports and proposed resolutions by the PCO, the PSC

will take strategic management decisions.

36. Programme Management. The PCO is the PRIDE management team tasked with planning,

budgeting and monitoring of programme activities, and reports on progress against the agreed

development objective and outcomes. As such it will mobilise agencies – either by enabling existing

services or outsourcing required services – to work with the communities in the scheme cluster areas.

The work of the decentralised agency staff will be facilitated by investments in transport,

communication and service delivery. Where these agencies lack adequate numbers of staff or miss

the prerequisite competence, the PCO will engage service providers, such as NGOs working on

agricultural development and specialised engineering services.

37. The PCO is structured along functional specialisations (as opposed to a regional

specialisation19

). This means that nearly all work processes – and certainly those described in

components 1 and 2 (see appendix 4) – cut across the functional responsibility of several staff

members. For the development of the irrigation schemes, for example, the WUA Specialist is

19

To offset the risk of a too rigid management along lines of technical specialisation, two regional facilitation offices are

established under the PCO, which will provide communication and coordination at the implementation floor.

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responsible for defining and adhering to the requisite decision-making procedures, including

consultation and prior consent on land consolidation, environmental assessment and mitigation and

WUA capacity building. He/she is informed by the technical specialist (in this example the irrigation

engineer) of the steps in the engineering process, from detailed design to hand-over and prepares a

planning per scheme cluster area based on all these procedures. The irrigation engineer is

responsible to define all technical targets (irrigated area, benefitted farmers, irrigator capacities,

beneficiary contributions, agency and programme contributions, etc.) and to define the responsibilities

of agencies, service providers and water users. The Procurement Officer prepares, based on the

inputs given, terms and conditions for outsourcing and for agency involvement; and translates this into

legally binding agreements. The procedural planning by the WUA specialist, the targets defined by the

technical specialist and the conditions set by the procurement officer, along with associated costs are

recorded and reviewed by the Planning, Monitoring and Evaluation Officer. He/she keeps abreast of

progress and issues warnings within the PCO if progress is behind or below target. He/she also keeps

an active eye on the risks associated with the programme. The Programme Director has the overall

overview, is responsible for all decisions (though at times delegated to his/her staff) and maintains

liaison with the steering committee, parent ministries and representatives of IFAD. Similar descriptions

can be given for the construction of soil- and water conservation infrastructure, for the establishment

of good agricultural practices and for the development of market linkages.

38. The choice for functional specialisation has been made especially because it requires

professional involvement of a team of experts in core decisions in the Programme. Opposing the

insights of different disciplines on a single process, enables decisions to be made that reflect

information from different perspectives. To achieve this, good interplay between the staff members of

the PCO is a prerequisite for the success of PRIDE. The following table gives a general description of

the roles of the PCO professional staff and how their duties combine for each process and for each

outcome of PRIDE.

Process steps /

Outputs

WUA

specialist

Technical

specialists

(irrigation,

crops and

value chains)

Procurement

Officer

PME

specialist

Programme

Director

Process 1:

Preparation

Define and

maintain process

steps,

stakeholders

involvement and

time frame

Define and

supervise

outputs required

from service

providers

(outsourced and

agencies)

Define contract

conditions for

outsourced

services and

select the required

procurement

method;

Define modalities

and terms of

agreement for

enabling of

agency services

Review planned

progress in

terms of time,

funds and

outputs; Signal

delays and

monitor

programme

risks

Ensure good

team play by

the PCO staff

Ensure

coherence in

management;

Take and

communicate

key decisions

Process 2:

Implementation

Process 3: Review

Outcome 1:

Infrastructure

Outcome 2: Good

Agricultural

Practices

Outcome 3: Market

linkages

39. Coordination. PRIDE’s success not only depends on good team work within the PCO; it also

requires the constructive engagement of concerned agencies at all levels of the Programme. In

section I of this appendix, two coordination teams have been introduced: the Technical Advisory

Team at national level, and the Implementation Teams at the level of single scheme cluster areas.

The Programme Design Group established in 2013 will transition into the Technical Advisory Team.

40. Cooperation partners. PRIDE implementation can benefit from cooperation with specialised

institutions. During design, a number of options have been identified. Where financial means change

hands, formal agreements will be developed, but otherwise the focus is on building relationships of

mutual trust:

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UNDP: IFAD will sign an interagency agreement with UNDP which will include the schedule of

funds for disbursement for establishing and managing the MICF Irrigation Window. There will

be no extra charges for management as this service is already paid for by DFID.

JICA: A JICA-funded and assisted capacity building programme for DOI is due to commence

during 2015, with a focus on capacities for small-scale irrigation scheme development and

management. PRIDE and JICA can mutually benefit from an exchange of experiences,

guidelines and manuals for irrigation development.

FAO: The ongoing FAO-Economics and Policy Innovations for Climate-Smart Agriculture

(EPIC) programme in Malawi is generating a base of evidence to undertake informed policy

decision and develop institutional arrangements to transform and re-orient smallholder

agricultural systems to effectively and sustainably support food security under the new realities

of climate change. Building on this effort, FAO will support PRIDE by: (i) extending and

consolidating analytical evidence about the productivity, resilience and mitigation effect of

climate-smart agricultural practices and their adoption at smallholder level, therefore

contributing to the selection of best suitable good agricultural practices in the (irrigated and rain-

fed) areas where PRIDE interventions will be implemented; (ii) developing a coherent

institutional and policy framework to account for synergies between food and security nutrition

and climate change adaptation also facilitating the policy dialogue between different Ministries

and key stakeholders; and (iii) contributing to the definition of a nationwide strategy to promote

the implementation of resilient good agricultural practices identifying requirements, and

formulating options for barrier removal to facilitate the roll-out of the newly established systems

in other suitable areas of Malawi. FAO’s contribution will be in kind through technical and policy

support. Should more support be needed, PRIDE can allocate part of its budget for the

identification and adaptation of GAPs to EPIC.

Regional and international agricultural research agencies. The Kasinthula Agricultural

Research Station is Malawi’s research facility for smallholder agriculture. It interacts with

various regionally operating research stations, including ACIAR, Association for Strengthening

Agricultural Research in Eastern and Central Africa (ASARECA) and Centre for Agricultural

Research and Development for Southern Africa (CARDESA). PRIDE will primarily benefit from

off-the-shelf good practices, but may allocate some of its resources for adaptive research on

good agricultural practices, especially in irrigated agriculture.

Global Land Tools Network (GLTN). It is proposed that tracer studies be implemented to

understand dynamics and impact of land tenure arrangements in irrigated agriculture. GLTN will

be PRIDE’s partner in developing the approach for these studies. The partnership between

IFAD and GLTN, through the Tenure Security Learning Initiative (TSLI) is sufficient to formalise

and operationalise this partnership.

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Appendix 6: Planning, M&E and learning and knowledge management

85


1. The 2001 National Irrigation Policy and Development Strategy (NIPDS)requires an effective and

feasible sector-wide M&E framework to track poverty reduction through irrigation. JICA is supporting

MOAIWD to develop a streamlined database and M&E framework and strengthening government staff

to collect, analyse and use data/information.

2. Programme Approach. PRIDE’s approach to Planning, Monitoring and Evaluation (PM&E)

and Knowledge Management (KM) will build in line with the NIPDS strategy and MOAIWD M&E

framework and the IFAD requirements based on emerging best practices of the IRLADP and the other

IFAD initiatives. Guiding principles that PRIDE’s PM&E will follow are:

harmonise the framework with other M&E systems and key indicators of government;

align PRIDE indicators with other IFAD programmes for a rationalised portfolio;

adopt results-based management, based on outputs and outcomes indicators to capture

change in the target groups and track poverty reduction and gender and youth related issues;

use of objective-oriented Logical Framework and Annual Work Plan for planning and

monitoring;

use standardised and simple mechanisms of data collection for decentralised data entry to be

systematic and accountable at district level and consolidation at PCO level; and

develop learning, innovation and KM mechanisms as integral part of PM&E.

Key performance indicators

3. The Logical Framework identifies outcome indicators that include adoption rates, numbers of

participants, area irrigated and area protected. Major output indicators include number and area of

irrigation sites developed or rehabilitated, number of staff and farmers trained and value addition

based on income. The logical framework includes indicators for which the collected data are

disaggregated by gender, age and wealth class, to track the inclusiveness of implementation (or lack

thereof). The indicators will be aligned to the COSOP, the MOAIWD and ASAP requirements and

monitored by the PRIDE M&E system. Specific key indicators are described in table 120

:

Table 1. Summary of Key Indicators

1. Irrigation Development and

Catchment Management

Outcome 1. Improved land and

water management in selected

smallholder irrigation schemes

and related catchments

Effectiveness: 15,750 farmers with secured access to land and water (RIMS 2.1.2)*

Incremental hectares of crop grown (RIMS 2.1.2) on irrigated land in different seasons (5,200 ha; 4,000 ha; 1,000 ha)

15 WUAs (and to be defined number of erosion control groups) managing infrastructure formed and/or strengthened (RIMS 1.1.2)

5,200 ha land under irrigation schemes constructed or rehabilitated (RIMS 1.1.5)

5,200 ha land consolidation and tenure arrangements completed

1,000 ha land with rehabilitated or restored ecosystem services (RIMS 1.1.17)

2. Agriculture for Irrigation and

Rain-fed systems

Outcome 2. Increased,

diversified, sustained and

climate-resilient smallholder

agricultural production in the

wet and dry seasons

17,000 farmers reporting production/yield increase (RIMS 2.2.2) of at least 20% for rainfed crops*

780 lead farmers and 15,000 FFS members trained in crop production practices and technologies (RIMS 1.2.2) specified for lead farmers and FSS attendants

780 lead farmers and 15,000 FFS members trained in post-production, processing and marketing (RIMS 1.4.1)

15,000 women trained in preparation of nutritious meals in 2 seasons

20

All indicators will be gender disaggregated.

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1. Irrigation Development and

Catchment Management

Outcome 1. Improved land and

water management in selected

smallholder irrigation schemes

and related catchments

Likelihood of sustainability: 15 WUAs are operational (RIMS: 2.1.1)

Effectiveness: 15,700 farmers with secured access to land and water (RIMS 2.1.2)

5,200 ha of newly irrigated under WUA management and 1,000 ha of recovered land under conservation group management

2. Agriculture for Irrigation and

Rain-fed systems

Outcome 2. Increased,

diversified, sustained and

climate-resilient smallholder

agricultural production in the

wet and dry seasons

17,000 farmers report yield increase from improved agricultural production

17,000 farmers report adoption of recommended climate smart Good Agricultural Practices

15,000 farmers reporting increased incomes (exceeding MWK 100,000 per annum) through marketing of agricultural products against baseline, by gender and wealth class

13,500 households report a 50% reduction in the use of firewood

4. The relevant COSOP indicators that PRIDE will contribute to through the monitoring proposed

include: (a) number of farmers adopting promoted technologies and practices; (b) number of farmers

with secure access to water; (c) number of WUAs operational; (d) hectares of land with improved

management through soil and water conservation measures; and (e) number of farmers trained in

good agricultural practices and marketing.

5. RIMS. The M&E system will satisfy minimum requirements by IFAD to report on a number of

results and impact indicators of direct relevance to PRIDE to be identified and agreed. Data and

information on the RIMS indicators will be reported preferably within the context of regular progress

reports using a standard tabulated format. First-level RIMS results (outputs) will be included in an

annual RIMS form that the PCO will complete and send to IFAD. The deadlines are communicated by

IFAD annually and are normally scheduled for the end of March. When second-level results

(outcomes) become available, these will be reported with the first-level RIMS results. Third-level RIMS

results (impact) will be reported to IFAD twice; once at midterm and once at completion. Output

indicators will be reported annually in March based on the previous year-end.

6. The seven-year Programme’s Development Goal is that "Rural communities are resilient to

food insecurity, climate change and economic risks ", which is aligned mainly within the Strategic

Objective 1 of the COSOP “Improve access of the poor to appropriate technology and services for

sustainable natural resource management” and National priorities. Achievement of this goal will be

measured both through an increase in social and production assets and a reduction in food insecurity

and in the prevalence of child malnutrition. This will be monitored using sample household surveys,

participatory impact monitoring and government statistics where available.

7. The PDO is "Sustainably enhanced production by smallholder farmers for household nutritional

demands and for income generation from viable markets". The success of PRIDE will be assessed

and evaluated based on the following indicators:

Number of smallholder households able to satisfy their food and nutritional needs with surplus

available for sale (disaggregated by gender and age);

Number of smallholder farmers reporting enhanced incomes;

Number of smallholder farmers receiving Programme services.

Monitoring and evaluation system

8. The PM&E Officer in the PCO is responsible for planning, monitoring, reporting, evaluation,

learning, knowledge management and communication, as well as ensuring appropriateness and

efficiency of implementation related to targeting (gender, geographical, time, etc.). The PM&E Officer

will take responsibility for: special studies, planning and reporting; relations with service providers;

gender and targeting; communications and knowledge management; cross-component learning: and

organisation of workshops, stakeholder relations and other events. The strengthened community level

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institutions such as existing leadership, combined village committee, WUA, conservation and

production groups will play a key role in the participatory monitoring of the environmental and climate

change adaptation measures.

9. AWPB. Programme planning will be an on-going and participatory process with AWPBs forming

the backbone of the planning. The AWPBs, together with the Logical Framework’s quantified results-

based indicators, will be the basis for monitoring PRIDE. Monitoring starts at the lowest level of the

Logical Framework and will capture all four levels of results (activities, outputs, outcomes and impact)

on a continuous basis. Conclusions from PM&E will be enriched with feedback that comes from on-

going generation of lessons learned, best practices, beneficiary and stakeholder stories also defined

as learning and knowledge management.

10. The AWPB will be the key instrument for implementation and operational control. The AWPB for

the first year will be based on the PRIDE design and prepared by a small team of experienced staff.

Training will be given to the PCO in the preparation of AWPBs. The PCO Programme Coordinator will

oversee the AWPB process and ensure that all stakeholders are fully involved. The PM&E Officer will

be responsible for coordinating the preparation of AWPB, its consolidation, and presentation to the

PSC, finalisation and submission to IFAD. The Financial Controller will provide costs, incorporation of

the financing plan and disbursement arrangement. The Procurement Specialist will prepare the

procurement plan. From year 2 onwards, a decentralised, inclusive and demand driven planning

process will be undertaken. The approved AWPB by the PSC and IFAD will be the authority for the

PCO to conduct activities and incur expenditure.

11. PRIDE’s annual planning and implementation cycle will be aligned with GOM’s main planning

cycle. The fiscal year goes from July to June while budget preparation extends from January to May.

Budget ceilings are issued between February and May before the budget goes to Parliament for

approval in late June. The DOI provides backstopping support to districts in the initial stages. An

annual water sector review report is prepared by MOAIWD within 60 days of the end of the fiscal year.

This report is based on the planning for the previous year and explains which targets have been met,

which ones have not and why. This report forms the basis for an annual joint water sector review in

December that makes a performance assessment of the Ministries and the sector during the previous

year. The water sector review then feeds into the MGDS review mechanism.

12. Management Information System. The PCO M&E Officer will establish a management

information system (MIS), using dedicated software to collect data from various levels. The MIS

database will be aligned to the PRIDE Logical Framework Indicators selected from the RIMS,

MOAIWD, COSOP and National M&E master plan indicators. Web-portals for easy viewing can be

considered, if deemed relevant by service providers and beneficiaries. External support will be

recruited for designing and establishing the databases and support to the IT infrastructure.

13. PRIDE and service providers will ensure that stories are collected on a regular basis, providing

factual information, already from baseline. Such testimonies are especially relevant for documenting

programme attribution on higher level impacts. Photo archives will be kept as part of structuring

qualitative information. To ensure an effective flow of information, the M&E Officer will develop simple

and user-friendly tools for data collection, data entry, data processing and analysis. Standard forms

and formats will be made available to ensure consistency in the way data is recorded. These tools are

needed at each of the four levels of the logical framework (activities and resources; outputs;

outcomes; and impact) and will include:

Standard formats for submission of financial returns on at least a monthly basis;

A spreadsheet, database or accounting software to enter data and produce financial summary

information (tables, graphs);

Standard forms, based on the AWPB, to record progress and expenditure for each planned

activity on a quarterly basis, and standard computer-based formats or templates to enter such

data in a consistent manner, to facilitate consolidation;

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Standard forms to record results, in terms of activities completed and specific outputs

produced, which will be the basis for physical progress summary information, and standard

computer-based formats or templates to enter that data consistently; and

Standard forms and computer-based formats or templates to enter data on PRIDE resources, in

particular registers of assets and contracts.

14. Reporting. A functional monitoring and MIS will provide the data needed to prepare progress

reports. Results will be submitted in summary form in quarterly, half-yearly and annual reports to the

PSC and IFAD. The AWPB is the starting point to monitor physical progress (actual implementation

compared to planned activities) and financial progress (actual expenditure compared to budget).

15. Progress reports. Progress reports present a full picture of programme resources, annual and

cumulative physical and financial achievements, analysis of successful approaches and outputs,

failures and constraints, and whether progress is being made towards achieving objectives. Progress

related to outcomes and overall goal cannot be expected until a reasonable period after interventions

and delivery of outputs has passed, however there is need to systematically collect data related to the

outcomes and goal almost from the beginning. In the first Annual Report, this may take the form of

mentioning some of the key findings of baseline survey work that have been carried-out. From the

second year onwards, the programme needs to start analysing whether outputs that are being

produced are actually leading to changes and benefits among the target group.

16. Evaluation. Evaluation by the PCO will ensure that activities being implemented are achieving

the stipulated performance and resulting in the desired impact. A particular focus will be the

assessment of the effectiveness of the programme on poverty alleviation and its impact of each

activity in terms of gender, and categories of households: male-headed, female-headed and youth. In

addition, attention will be paid to the beneficiary contribution: regular monitoring will confirm that this

contribution does not exceed 20% of the scheme development cost and takes into account the

individual contributions of land and crop loss as well.

17. Baseline, mid-term and completion surveys. These studies are undertaken at start, middle

and end of the programme implementation period and identify, verify and track impacts. A baseline

survey will be undertaken to benchmark the existing situation as part of the design of each irrigation

scheme. The baseline studies and follow-up surveys combine collection of basic demographic and

socio-economic data with application of the Multidimensional Poverty Assessment Tool (MPAT), in

order to understand and gauge impacts on poverty reduction. The Women Empowerment in

Agriculture Index (WEAI) will also form part of the baseline and follow-up surveys in each scheme

cluster area. The WEAI helps track changes in women’s empowerment levels as a direct or indirect

result of an intervention.

18. Tracer studies will be undertaken on land and water tenure and governance in coordination

with the Global Land Tools Network in the context of IFAD’s regional Tenure Security Learning

Initiative (TSLI).

19. Mid-Term Review (MTR). A MTR will be conducted halfway through implementation (towards

end of year 3) to assess the performance and impact and its progress against the established

objectives, the efficiency and effectiveness of PRIDE management, and the validity of PRIDE design.

Recommendations for revisions to the activities and approach, the Logical framework targets, may be

made if required.

20. Programme Completion Report (PCR). At the end of the implementation period, a PCR will

be compiled to provide an overview of the accomplishments of PRIDE. The PCR should inform the

rationale for and orientation of a follow-on investment programme.

Learning mechanism and knowledge management (km)

21. PRIDE aspires to be relevant for the smallholder agriculture sector as a whole. This determines

that lessons from experience have to be drawn and shared with stakeholders in the sector as a whole.

PRIDE is not aimed at the development of new policies and strategies at the national level; but aims

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to inform this level of relevant experiences and good practices. The contribution of PRIDE to the wider

policy debate in the smallholder agriculture sector comes in the form of factsheets, which document

lessons learned.

22. Factsheets find their origin in the monitoring and evaluation system described above, and

especially in the reviews and participatory assessments. Here, important lessons are identified and a

first version of the lessons is described. PCO staff and hired hands where needed, elaborate the

lesson learned in a draft factsheet. This is a concise description, with reference to additional

information and informants. The PCO will develop a standard format for the factsheets.

23. Draft factsheets are reviewed and improved upon through small expert workshops with

concerned stakeholders. The idea is to confirm the relevance of the lesson learned, to improve upon

the description and to contemplate the implications of such a lesson for the policy framework for

smallholder agriculture. Factsheets that do not create a stir, will not be published and disseminated.

24. Once factsheets are finalised, they will be disseminated using the websites of the Programme

and of the MOAIWD; and where possible websites of relevant institutions, such as research agencies.

Moreover, the factsheets will be presented in national workshop on key programme themes (climate-

smart agriculture, value chains, land tenure, smallholder irrigation).

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Appendix 7: Financial management and disbursement arrangements

91


Country Issues/Overarching assessment of inherent risk

1. Transparency International's Global Corruption Perception Index score for 2013 and 2012

Malawi remained constant at 37 (scale 0- high risk and 100 -low risk) as medium risk. Malawi is

ranked 91 over 177 countries monitored.

2. IFAD’s Rural Sector Performance score provides a focused assessment of the potential risk

in the rural sector. It is an indicator of accountability, transparency and corruption in the rural areas.

The 2014 RSP E(ii) score for Malawi is 3.75.which is also a medium risk category.

3. Risk has increased due to a large government corruption scandal towards end of 2013, which

led donors to temporarily suspend aid disbursement to Malawi.

4. In a bid to strengthen the public financial management framework and systems, the GOM has;

(i) established independent audit committees for ministries departments and agencies; (ii) carried-out

a forensic audit of the IFMS; (iii) engaged an IT security officer based at the Accountant Generals

Department to monitor unlawful transactions on the IFMS; (iv) cleared a backlog of Government

accounts reconciliations that were last carried-out in July 2013; and (v) speeded up the trial of cases

for officers implicated in illegal transactions. However, the full impact of the Public Financial

Management reforms is only expected to be achieved fully in one to two years’ time at best.

5. Although the Malawi Public Financial Management (PFM) systems will be used under PRIDE,

additional mitigation measures have been proposed as part of this assessment to complement the

country financial management systems. The MOAIWD as the lead agency will through DOI establish

a PRIDE PCO. The PCO will use its own discrete accounting software using specific earmarked bank

accounts. The PCO will be staffed with a financial controller recruited under performance contract to

be supported with two assistant accountants under similar terms. Processing of PRIDE day to day

transactions will be off the Government IFMS. However, periodic returns will be provided by the

programme to the Accountant General to enable the updating of the Government accounts.

Proposed financial control organisation structure 6. The MOFEDP will represent GOM on all matters pertaining the Programme. MOAIWD is

assigned the responsibility of Lead Programme Agency, and will ensure the overall oversight for the

implementation of PRIDE. This includes the provision of general policy directions for the

implementation, coordinating, implementing and ensuring coordination with other relevant agencies.

The GOM will establish a Programme Steering Committee (PSC) to be chaired by the PS (Irrigation &

Water Development) of MOAIWD, and composed by PSs of MOFEPD, MLGRD, MLHUD and

MONREM. The PSC will have a fiduciary responsibility including approval of AWPBs and scrutiny of

any adjustments requested and material unauthorised expenditure overruns. Key audit findings from

internal and external audits will be discussed in PSC meetings. The PSC will establish an audit and

oversight committee to review and report to the PSC material matters raised by auditors/ or other

reviews.

7. A PCO will directly administer PRIDE. The PCO finance team reporting to the Director of

Finance (MOAIWD) shall be composed of (i) Financial Controller; (ii) accountant; and (iii) an accounts

assistant. The PCO finance team will be responsible for the accounting function of PRIDE, including

consolidation of PCO and regional accounts, issuance of annual financial statements, periodic

financial reporting and overseeing the arrangements for audits, in accordance to GOM’s procedures

and IFAD’s audit guidelines. Participating districts will second specific staff to manage the accounting

requirements at their level. These will be required to share information with the Financial Controller as

part of a cascaded replenishment system.

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Project Level Financial Management Arrangements

8. Project Level Financial Management Assessment (FMA): In accordance with IFAD’s

Guidelines for financial Management assessment at design, a financial management assessment was

carried-out based on IRLADP and SAPP. The view is that similar systems may be used under PRIDE.

The objective of the FMA was to determine whether these programmes have acceptable financial

management arrangements, to ensure that; (i) programme funds are used only for the intended

purposes in an efficient and economical way; (ii) accurate, reliable and timely periodic financial reports

are prepared; and (iii) the entities’ assets are safeguarded. Both IRLADP and SAPP operate under

MOAIWD same as PRIDE will. The assessment of these two ongoing programmes has helped in

developing stronger design features for PRIDE.

Strengths and Weaknesses of the IRLADP and SAPP Financial Management system

Strengths to be used in PRIDE

Weaknesses to be mitigated in PRIDE

IRLADP

Dedicated accounting system (Tompro);

Comprehensive project specific chart of accounts;

Satisfactory disbursement levels;

Unqualified audit opinions;

Traceability of funds through project specific bank accounts;

Finance staff under performance contracts translates into increased efficiencies in financial processes.

Software installed towards end of project; no accurate cumulative information. PRIDE should ensure this is done as part of start-up activities.

Weak budget control tools. Although software allows for budget control these features were not well invoked. Supervision missions and auditors under PRIDE will include these in their tests.

Using report-based disbursement which may not be acceptable under IFAD. PRIDE will use the SOE approach to replenish funds.

Suffered significant challenges in use of SOE procedure before the World Bank moved the project to report-based disbursement. IFAD/GOM will ensure training in IFAD processes as part of start- up activities.

Weak monitoring of advances; many times advances are expended and the trail is lost. PRIDE chart of accounts will include advance ledgers.

Audited financial statements not in agreement with official accounting system- Tompro. This will be included in audit TORs and missions will ensure consistence between the any financial reports and the official accounting systems.

Bank reconciliations for holding/ operational account not well done.

Balances on holding accounts often excluded from the special account reconciliation.

Lengthy chart of accounts with tiny ledgers that could have been merged in consultation with PM&E officer.

In kind contributions not captured (including waived taxes and beneficiary labour).

Financial securities received during bidding/ contract implementation not passed on to finance teams for verification with issuing authorities.

While audited financial statements disclose a cash basis of accounting the actual accounting base there is no full compliance.

SAPP

Traceability of funds through project specific bank accounts;

Satisfactory segregation of duties.

Unsatisfactory disbursement levels; one of the reasons being lack of project-specific staff.

IFMS unable to generate project reports by component, category, and financiers and up to individual activity level. Dedicated accounting software will be installed.

Delays in putting ASWAp framework in place has made SAPP operate in environments of not well-defined organisational structures.

No SAPP specific terms of reference for staff working on finance processes.

Difficulties in budgeting and budget control- significant queries raised by supervision missions.

No evidence of regular bank reconciliation for the PPF account.

No assets register for assets acquired under PPF.

Mix up of PPF funds with the main loan and grant funds making justifications complex. A comprehensive chart of accounts and reporting templates shall be developed.

9. The following risk analysis is based on the assessment of financial management arrangements

of IRLADP, RLEEP, and SAPP. The detailed FMA Questionnaire is included in the programme life file.

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Risk Assessment and Mitigation Measures Risk Rating

before Risk Mitigating Measures incorporated

into Programme Design Rating after

Inherent Risk M M

Control Risk

Organisation & Staffing

SAPP experience has shown that without dedicated staff on performance-based contracts, efficiencies in financial processes can be greatly impaired with affects overall implementation and disbursement.

Coordination between MOAIWD and districts staff pose challenges with transfers of staff and low capacity.

Experience with RLEEP and SAPP's transitional PCU has shown that stand-alone PCUs in Malawi can be highly effective.

M

PRIDE will recruit specific financial controller and accountants on performance-based contracts.

Simple familiar tools such as cashbooks and vote books will be used at district. Even with frequent transfers, any incoming finance office would be able to continue from where the outgoing left.

L

Budgeting

Deadlines for the submission of the AWPB’s may not be met due to the non- availability of clear planning schedules and lack of clarity of PRIDE at district levels as has been the case under SAPP.

Inadequate budgets controls may lead to poor monitoring of the programme’s budget leading to cost overruns as has been the case under IRLADP.

Commitment control is weak; which may result in over-committing the project.

M

Proactive follow up by the PCO of the agreed budgeting calendar

Dedicated accounting software should have a module to control the budget through use of electronic vouchers as opposed to manual.

Commitment control tools such as vote books at district level and budget control module at national level will be used. The contracts registers, the contract monitoring forms will be used to strengthen commitment control.

L

Funds flows and disbursement

IRLADP had challenges using the SOE procedures and was later put on report-based disbursed. Using SOE procedures may pose some challenge.

Counterpart contributions in kind may not be captured.

Delays on part of co-financiers (e.g. EU)

Delays in the remittance of counterpart funding.

Inadequate capacity especially at the district levels to properly manage the PRIDE accounts, delays in submission of expenditure justification could lead to liquidity challenges undermining progress.

Experience with designated accounts located within the Reserve Bank of Malawi has been poor with slow transfers from the designated account affecting RLEEP and SAPP.

H

Training in IFAD procedures

Proactive implementation support from IFAD

GOM tax contributions/ exemptions to be included in the PRIDE bill to make it easy for MRA to provide the required tax exemptions

Apart from ASAP which will be administered through IFAD on a parri passu basis, all other funding sources will be on parallel basis.

At participating districts use familiar tools such as vote books, the accounting software/ project accounting hub will be at the PCO.

Designated Account in a commercial bank rather than the Reserve Bank of Malawi.

M

Internal Controls

Inadequate budget controls leading to budget overruns as has been the case under IRLADP.

The internal controls for SAPP and RLEEP have been assessed as low risk with proper segregation of duties, record keeping, and IT support.

L

Budget module as part of the accounting software and review of this to be included in the TORs of supervision missions and auditors.

Systems audits to be included in the TORs of auditors and in the overall IFAD supervision plan.

Segregation of duties between procurement and finance officers to be emphasised in job descriptions.

L

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Risk Rating before

Risk Mitigating Measures incorporated into Programme Design

Rating after

Accounting Systems, Policies & Procedures

IFMS unable to handle the accounting demands of PRIDE.

Inadequate chart of accounts that may not reflect the programme Components, sub-components, and expenditure categories up to individual activity level.

SAPP has recently acquired TOMPRO and PRIDE is planned to use off the shelf accounting software from the start.

M

Dedicated accounting package.

Development of chart of accounts to be a joint effort between the financial controller and the P&ME Officer.

L

Reporting & monitoring

IRLADP financials disclose the accounting base as IPSAS cash basis yet the financials are not fully compliant to these accounting standards. There is a risk that PRIDE may also not be compliant to the agreed to accounting standards.

Inadequate chart of accounts to facilitate expenditure monitoring. The chart of accounts used under IRLADP was overly lengthy with minute details that clouded meaningful monitoring.

Recent SAPP and RLEEP financial statements have been satisfactory and complete.

M

Training in IPSAS cash basis

Chart of accounts to be a joint effort between the financial controller and PM&E Officer.

Introduce standard tools such as contract monitoring forms, contract registers that have not been used under IRLADP.

L

Internal audit

Limited internal audit capacity at the MOAIWD. This may affect the effectiveness of monitoring PRIDE’s systems and controls as these staff may be overloaded.

Internal Audit reports from MOAIWD for SAPP have been received.

M

This service may be outsourced on part time basis to an individual or audit firm. L

Auditing

There is a risk of delays in the submission of audit reports to IFAD as per the agreed timelines. These delays have been experienced by many GOM programmes.

In the most recent audit review the performance of the auditor general was assed as satisfactory.

Especially for infrastructure projects the willingness of the auditor general to include operation issues in the scope of the audit is useful.

M

IFAD should discuss with the office of the Auditor General an audit calendar to ensure timely submission of audit reports to the Fund.

The timing of projects submission of financial statements to the auditor general should also be monitored so the source of any bottlenecks can be identified.

L

Overall FM Risk M L

H- High, M-Moderate, L-Low Conclusion of the assessment 10. Overall, the assessment concludes that the proposed FM arrangements for PRIDE to be

medium risk. The proposed arrangement will be managed by a dedicated PCO under the oversight

and guidance of a MOAIWD-chaired PSC; and under the ultimate responsibility of the MOFEPD.

These arrangements satisfy IFAD’s minimum requirements for a robust and sound financial

management with a mitigated risk level assessed as low.

Supervision Plan (FM) 11. In light of the low residual FM risk, in the first year of implementation the supervision plan of

PRIDE will comprise at least two on-site visits that will involve inter alia visits to the implementers

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(contractors and districts). The supervision process will be complemented by desk review of progress

and financial reports, the programme’s annual financial statements, internal audit reports, and annual

audits. However, IFAD will be expected to provide a proactive support at the start which is why the

residual risk has been assessed as low.

Proposed Funds Flow and Disbursement Arrangements 12. The summary of the proposed funds flows arrangements (see chart) is as follows:

A single designated accounts handling all of the principal funding sources, i.e. IFAD grant, IFAD loan, and ASAP funds;

Joint withdrawal applications for these IFAD loan, IFAD grant and ASAP funds in proportions to be defined in schedule 2 to the financing agreement with clear instructions of where to charge indicated on each withdrawal application;

Co-financing will be on a parallel basis;

Treasury will operate on a special account in commercial bank. MOAIWD will operate the Holding account in the commercial bank. There will be one operational bank account managed by the PCO;

Each decentralised government agency that may eventually participate in the project will be required to open a PRIDE specific bank account to receive activity-tagged cash advances to be retired before subsequent releases; or in busy seasons at most 3 unretired imprest advances may be held in one by a given advance holder. Private service providers will receive advances in accordance to contract stipulations;

Project expenditures shall be eligible for financing if they are incurred during the Implementation Period. However, PRIDE expenditures may be incurred before entry into force. In this case – but on an exceptional basis and with the approval of the Executive Board – the project would benefit of retroactive financing, in accordance with Section 4.08 of the General Conditions (GC).

Chart 1: PRIDE Funds Flow Chart

IFAD Loan IFAD Grant ASAP Grant GDM Co-funders Beneficiaries Sources

Project Designated Account Dedicated account at Commercial Bank, operated by MOAIWD

Programme Operating

Account at a commercial

bank

Public and private service

providers accounts

Tax WaiversCounterpart funding (in

kind)

Co-funding specific

activities under parallel

agreements

In kind contributions

under agreements

Programme implementation (components 1 and 2) and Programme Management

Republic of Malawi



Appendix 8: Procurement

97


Overarching country assessment

1. In relation to procurement, IFAD’s General Conditions places emphasis on using the Borrower/

recipient/Recipient’s procurement regulations, provided they are deemed to be consistent with IFAD’s

guidelines. This is in line with the various commitments of the international donor community to work

towards increasing the use of national systems where they can be shown to be compatible with the

requirement of donors. The IFAD procurement guidelines and handbook require an assessment of

national procurement systems as part of project design. The assessment has been done in two

stages: (i) overarching country assessment; and (ii) project specific assessment.

2. The Malawi legislative and regulatory framework is robust enough. The applicable law and

regulations are contained in: (i) the Public Procurement Act; (ii) the Procurement Regulations; and

(iii) Desk Instructions for Public Procurement.

3. The Public Procurement Act introduced a new legal framework governing public procurement in

Malawi. The framework provided for the establishment of the Office of Directorate of Public

Procurement (ODPP), which, since becoming operational, has taken the lead on public procurement

reform. Among the changes to the procurement system introduced by ODPP was the complete

decentralisation of the procurement process to the level of each public entity. There was also a

concerted effort to raise awareness of the newly established framework among public sector officials,

the private sector, civil society and the general population.

4. The legal and regulatory framework is sound for efficient public procurement. The Public

Procurement Act and Regulations adequately establish the institutional framework required to support

public procurement, the stages of the procurement process, the main methods of procurement and

their conditions for use, and the conditions for review and auditing. Moreover, the Desk Instructions

serve as a manual for procuring entities providing easy and simplified explanations and guidance.

Finally, a comprehensive set of Standard Bidding Documents (SBDs) for a wide range of goods,

works, and services has been issued to assist the procuring entities in the procurement process. The

legal and regulatory framework in place thus represents a key asset in the development of sound and

efficient procurement.

5. Despite these overall encouraging trends, country procurement assessment by ODPP with

UNDP support found issues that still need to be addressed to ensure that procurement processes in

practice are fully compliant with the legislative and regulatory framework. These include: (i) few

procuring entities use the SBDs; (ii) many procuring entities do not have a copy of the Regulations

and Desk Instructions; (iii) the quality of technical specifications is often poor; (iv) evaluation criteria

are often poorly specified; (v) awareness of procedures for review is limited; and (vi) some procuring

entities have experienced political interference in the procurement process.

6. Procurement is not integrated in the budget formulation process. At present there is no

linkage between the budget planning and the procurement planning. Thus, so-called procurement

plans are made after budget allocation and approval – if made at all. ODPP is however making

procurement planning compulsory.

Procurement plans are not followed. For those procuring entities that have developed consolidated procurement plans, carrying out procurements in accordance with the plan remains a major challenge. Poor planning skills, time constraints, and to some extent external interferences and unplanned procurements constitute major obstacles.

No completion report mechanism exists. There is no feedback mechanism providing completion reports on the execution of major contracts. The procedures related to the preparation of completion reports appear to differ between procuring entities. Some entities report that: (i) completion reports are prepared; (ii) the process of preparing completion reports is often delayed; and (iii) they do not prepare completion reports for major contracts.

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98

Most procuring entities have inadequate procurement competence levels and record keeping in procuring entities remains poor.

The assessment by ODPP encountered a number of weaknesses related to the compliance and performance of the established control mechanisms. The following key issues were noted: (i) auditors lack procurement proficiency; (ii) weak enforcement of audit recommendations; (iii) internal audit committees are not yet established; and (iv) compliant decisions are currently not being published.

Project Specific Assessment-Based on operations of IRLADP

7. Project specific assessment: During the design mission, a procurement assessment was

carried-out on IRLADP operations in accordance with the IFAD procurement guidelines and

handbook. The overall assessment was partially satisfactory and the following gaps were identified:

Very high thresholds were being used by IRLADP under World Bank. Limited bidding (shopping) was up to the equivalent of USD 200,000 for goods and ICB was mandatory only for procurements over the equivalent of USD 2 million. Under PRIDE the GOM thresholds will be followed which currently are as follows:

Table 1: PRIDE Procurement thresholds

Threshold

Procurement Method MWK million

Goods Up to 5 Request for Quotation (RFQ) using Govt approved list

>5-80 National Competitive Bidding (NCB)

>80 International Competitive Bidding (ICB)

Services Up to 5 Least Cost Selection (LCS) - Other methods such as Fixed Budget and

Quality-based Selection (QBS) may be used depending on the assignment.

>5-15 Quality cost and based selection (QCBS)

>15-40 QCBS- Expression of Interest/ Prior review by ODPP

>40 QCBS- Expression of Interest/ Prior review by ODPP+ international advert

Works Up to 10 RFQ

10-800 NCB

>800 ICB

Bid registers were not well-documented under IRLADP. This meant that bids could easily be smuggled into IRLADP beyond the deadlines as well as easily be misplaced and or lost due to poor record keeping. Under PRIDE a system of registering bids and proper procedures for bidding closing will be introduced.

The selection and appointment of the evaluation committee members was left to the procurement specialist with no formal appointments signed off by the coordinator or his superiors. Under PRIDE IFAD will be interested in pen profiles/calibre of members sitting on evaluation committees to ensure a balanced mix of skills for specialised evaluations.

Prequalification, even where necessary, was not undertaken under IRLADP. Given the repetitive nature of small and medium schemes that PRIDE will be undertaking, prequalification will be undertaken on a two yearly interval.

Bid securities were not handled properly under IRLADP. These financial instruments were being kept as part of the original bids or scattered around the offices yet they represent money. Under PRIDE, all financial instruments (bid securities, performance securities, advance guarantees) will be passed by the procurement officer to the financial controller for authentication from issuing authorities and also for safe custody and monitoring them for execution in the event of any contractual breaches.

Contact administration was not adequate under IRLADP as finance and procurement staffs were not maintaining contract monitoring forms and contract registers. With such a civil works heavy project, contract administration cannot be overemphasised. Under PRIDE as part of start-up activities contract administration training will be given the importance it deserves and tools such as contract monitoring forms, contract registers, etc., will be introduced.

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99

PRIDE procurement arrangements

8. For PRIDE, it is recommended that the GOM procurement systems will be used. Thus the

procurement planning should be according to the GOM planning calendar. Due to the medium

inherent risk ranking of the GOM procurement systems obtained at various assessments; the IFAD

prior review thresholds for PRIDE would be USD 50,000 for goods and services and for works over

USD 100,000 to start with. Mitigation measures for civil works, including those for dams, as defined by

the ESMPs, are included in the construction contracts.

9. PRIDE procurement organisation structure: PRIDE will set up a specific procurement unit

managed by procurement specialist. For each contract, ad hoc evaluation committee members will be

appointed by the Programme Director in consultation with the procurement specialist and the

concerned technical specialists. The committee members will be formally appointed by the MOAIWD

PS or designate and will be required to sign a confidentiality code and professional declaration.

10. Internal Procurement Committee (IPC): The MOAIWD IPC will be the overall approval authority.

The IPC will approve; (i) all procurement plans; (ii) draft advertisements and other bidding documents;

(iii) specific terms and conditions relating to contract amounts, completion periods, stages and

conditions of part payments; and (iv) applications for contract variations above thresholds as set and

issued by the ODPP.

11. All PRIDE NCB and ICB procurements will be carried-out and managed centrally at the PCO.

Local shopping may be carried-out at the district level in case bulking opportunities may not be

feasible at the PCO. In this regard, districts will have to submit their procurement plans for inclusion in

the consolidated PRIDE procurement plan. Efforts should be made by the PRIDE procurement

specialist to ensure that the best contract packaging possible, including consideration of what lots can

be put together in a package for which it is possible to find a supplier or bulking opportunities.

12. The Procurement Plan should be submitted to the procurement unit at MOAIWD. The

Procurement Unit will refine the PRIDE Procurement Plan and submit it to ODPP for information and

later to IFAD for a no objection as part of the PRIDE AWPB. It is important to note that if the

procurement specialist does not carefully work through the procurement planning so that optimal

contract packaging or bulking opportunities are missed; this will affect disbursement as there may be

many small packages and payments that would make it impossible to optimally deploy the available

disbursement methods.

13. Bidding Documents: The evaluation criteria and the final selection of all procurements are

based on the bidding documents. Thus if the bid documents are poorly prepared, miss-procurements

and or corruption may occur. Under PRIDE, the GOM standard bid documents will be used and

adapted to suit the each specific procurement item. On job training should be carried-out for PRIDE

management by MOAIWD and or IFAD in the preparation of these documents. The TOR’s for the

external auditors should include a requirement to review and advice on the suitability of prepared bid

documents; a procurement auditor should always be part of the team. The approval of the IPC should

always be sought for each prepared bid documents as per the approval thresholds in the public

procurement Act. For those procurements above the IFAD prior review thresholds, an IFAD no

objection should also be sought for by PRIDE management.

14. Integrated contract for irrigation development. PRIDE will issue at least one integrated

contract for design, construction and management transfer to the WUA of an irrigation scheme. Such

a Design – Build – Transfer Contract is new to the sector, and quite likely new to Malawi. The

Procurement Specialist will draft a procurement strategy for the DBT contract and use this as a basis

for a market consultation. For this consultation, major civil contractors, which have a sufficient

financial capacity to pre-finance investments, are invited, along with entities experienced in design

and in promotion of farmer-management of irrigation systems. Criteria for payment will both stress the

most efficient use of funds for irrigation development (criterion: cost per hectare actually irrigated over

a 3-year period) and the transfer of day-to-day management to a capable WUA (criterion: documented

and visual evidence of WUA assuming O&M responsibilities).

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Table 2: Summary of PRIDE procurement processes for goods, works and services

Steps in Procurement Cycle Responsibility

1. Procurement Plan and Budget

2. Procurement Requisition filled with

clear specifications

3. Confirmation of availability of funds

4. Review of specifications,

Procurement Method, evaluation

criteria and potential suppliers

5. Procurement method approval

6. Preparation of bidding documents -

Instructions to bidders, terms and

Conditions etc.

7. Approval of bidding documents

8. Advertising and invitation for bids

9. Receipt and opening of bids

10. Evaluation of bids

11. Review of evaluation report and

IFAD “no objection"

12. Award of contract

13. Sign contract and communicate

award, administrative review

14. Contract monitoring, delivery and

payment

15. Contract performance evaluation

User Department/

Technical specialists

PRIDE Financial Controller

PCO Procurement specialist

Will coordinate this

MOAIWD IPC

PCO Procurement Specialist

MOAIWD IPC, IFAD no

objection

PCO Procurement

Specialist will coordinate

this process

MOAIWD IPC

User Department

Ad hoc evaluation

Committees with suitable

Skill mix

Project

Coordinator/ PS

Republic of Malawi



Appendix 9: Programme cost and financing

101


Main Assumptions

1. PRIDE is to be financed over a seven-year period (2016-2022). Costs have been estimated on

the basis of prices prevailing at the time of final design mission in March 2015. Information collected

during the design missions provided the key parameters for the Programme costs. Data collected

have been checked for consistency with average costs of goods and services in Malawi.

Economic growth, Inflation, Contingencies and Exchange Rates

2. Economic growth. Malawi is a low-income country with a very small-sized economy. Malawi

recorded strong average growth (real gross domestic product - GDP) of 7.1% till 2010, it slowed down

to 4.3% in 2011 and rebounded to 4.97% in 2013. We expect growth to slow from an estimated 5.3%

in 2014 to 3.6% in 2015 as tobacco production falls in response to the low prices fetched in the

previous year, uranium output drops to zero after operations at the Kayelekera mine in northern

Malawi were suspended in May 2014 –owing to depressed world uranium prices- and large floods in

southern Malawi in early 2015 affect crop development and likely harvest. The continued suspension

of aid inflows from major donors will delay investment projects and weigh on government

consumption, further tempering the pace of growth. Introduction of new technologies such as mobile

banking and the expansion of other telecommunications services will support robust growth in the

services sector in 2015 and throughout the outlook period.

3. Beyond 2015, we expect overall growth to pick up as aid inflows rise gradually, political stability

improves and investor sentiment strengthens. Agricultural growth will slow over the forecast period as

the potential for raising maize output through fertiliser usage declines and only slow progress is made

on improving rural roads and irrigation infrastructure. Uranium production is likely to restart once world

prices recover in the second half of the forecast period, and this, together with exploration for rare

earth minerals and further uranium resources, will support growth in the medium term. Investments in

power infrastructure, including generation capacity and transmission lines, will also underpin growth in

manufacturing and other economic activities, although demand will continue to outstrip supply.

Overall, forecasted growth will rise to an average of around 5.4% a year in 2016-19.

4. Inflation rates. Year-on-year inflation has remained firmly above 20% since mid-2012.

However, a stabilising currency and a sharp drop in average world oil prices will help to ease price

pressure in 2015, although a weak domestic harvest due to large floods will reduce domestic food

availability. Overall, the forecasted average inflation will ease from 23.8% in 2014 to 16.4% in 2015.

Inflation is expected to continue to moderate gradually thereafter, to an average of 9.7% in 2016-19,

as currency depreciation slows and domestic food production improves, moderating the effect of rising

international oil prices.

5. Contingencies. Price contingencies have been applied on all costs. A local inflation rate of

10% is applied for the analysis for the Programme period 2016-2022. Foreign inflation rate (2%) has

been based on the Unit Value Index (in USD) of manufactures (MUV), which is commonly used as a

deflator in the commodity-price literature. Both local and foreign inflation rates are shown in table 1.

Table 1: Inflation rates

April 2015 2016 2017 2018 2019 2020 2021

Local 19% 10% 10% 10% 10% 10% 10%

Foreign 2% 2% 2% 2% 2% 2% 2%

Source: EIU Malawi Q1 2015 country report

6. Physical contingencies have been considered in case of shocks that may emerge during

implementation. A physical contingency of 4% has been applied to items for which the required

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102

amounts could not be reasonably estimated, i.e. works (mainly related to the uncertainties in the

designs of irrigation schemes, of which some are at pre-feasibility level only).

7. Exchange Rate. The shift to a floating exchange-rate regime in May 2012, coupled with a weak

current-account position and low levels of foreign reserves, caused the Malawian Kwacha (MK) to

depreciate to an average of MK356 to USD 1 in 2013, from MK166 to USD 1 prior to the introduction

of a flexible exchange rate. Depreciation continued during 2014 (MK455 to USD 1). The exchange

rate was MK 440 to USD 1 at final design (March 2015) and the authorities expect it to remain

relatively stable for the rest of the year. However, the currency usually stabilises during the main

tobacco export season (April-August)and is likely to do so again in the future. Despite higher tobacco

exports, it is expected the MK will continue to depreciate in 2015, owing to the large current-account

deficit and weak investment inflows. It is also expected the MK will continue to weaken thereafter,

albeit more gradually, as the current-account deficit remains wide and foreign direct investment

inflows stay fairly weak.

8. For the purpose of this analysis and in consideration of the above, most of the unit cost costs

have been calculated in USD in order to deal with the forecasted turbulence in the foreign exchange

market. The exchange rate has been set to MK 440 to USD 1 (at data collection and negotiation).

9. Taxes and Duties. Taxes and duties have been estimated using information provided by the

Malawi Revenue Authority and the Ministry of Finance. Import duties and value added tax (VAT) are

applied where appropriate. VAT of 16.5% is levied on all imported and locally procured goods and

services. Taxes on imported vehicles also include import duties and excises, ranging between 41.5%

and 96.5%. The vehicles imported under PRIDE (four wheel drive exceeding 3,000 cc) would fall in

the highest tax category, being 96.5% (import duty 25%, import excise 55%, VAT 16.5%).

International technical assistance does not carry any taxes while training activities are taxed at 5%.

For directly recruited local staff the Programme will cover social insurance charges of 15%. All items

to be imported for the Programme attract custom duties of different proportions, between 0 and 30%.

A flat rate of 13.5% is imposed on all equipment and materials.

10. The Government will waive duties, excises and taxes or will finance the cost of all taxes on

goods procured under the Programme. Taxes and duties applied in Programme costing – displayed

by expenditure category – are summarized in table 2.

Table 2: Taxes, duties and foreign exchange by expenditure category

Programme Costs

11. Total Programme costs including price and physical contingencies, duties and taxes are

estimated at USD 84 million over the seven-year Programme implementation period as shown in

table 3.

12. Of this amount about USD 23 million (27% of total project costs) represents the foreign

exchange component, USD 13 million (15.9%) are duties and taxes. Total base costs amount USD

77.1 million, while physical and price contingencies are estimated to add another USD 6.8 million

(8.8% of the base costs) to this amount. Investment costs account for 86% of the base costs (and

Expenditure category

%

Taxes

%

Duty/Taxes

% foreign

exchange

Civil works 16.5 0 50

Vehicles (3000 cc and above) 96.5 17 60

Other Equipment and Materials 30 55 20

Studies and consultancies 16.5 0 50

Training 5 0 20

Co-funding 0 0 0

Operations and maintenance 16.5 0 10

Salaries and allowances 15 0 0

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103

recurrent costs for remaining 14%). Programme investments are organized into three components:

(i) Irrigation development and catchment management; (ii) Agriculture and market linkages; and

(iii) Programme management and coordination. The first component consists of three sub-

components, being: (i) land and water governance; (ii) irrigation system development; and (iii) soil and

water conservation). The second component also comprises three sub-components, being

(i) improved agricultural practices; (ii) market linkages; and (iii) mainstreaming nutrition. A third cost

component is made of two sub-components, being: (i) programme management; and (ii) Knowledge

Management and Planning, Monitoring & Evaluation. Funds allocated to Programme management

and coordination amount to about USD 8.1 million or 9.7% of the total Programme costs. A summary

breakdown of the Programme costs by component and sub-component is shown in table 3.

Programme summary and detailed costs are provided in annexes 1 and 2.

Table 3: Programme Costs Summary by Year and by Component (million USD)


2016 2017 2018 2019 2020 2021 2022 Total





Subtotal 3.192 10.639 13.586 11.493 7.316 6.237 1.254 53.718



2. Market linkages 1.931 4.380 4.510 1.083 534 451 268 13.159


Subtotal 2.872 5.827 5.914 2.438 1.715 1.541 609 20.918




Subtotal 1.657 1.206 1.228 1.345 1.676 1.261 941 9.314


Programme Costs by Expenditure Categories

13. The expenditure accounts are based on the standardisation that IFAD is adopting after phasing

its Loan and Grants System. The largest expenditure category among investment costs is

represented by civil works (53% of total base costs). A summary breakdown of the Programme costs

by expenditure category is shown in table 4.

Table 4: Programme Costs by Expenditure Categories

(MK Million) (USD '000)

% % Total % % Total

Foreign Base Foreign Base

Local Foreign Total Exchange Costs Local Foreign Total Exchange Costs

I. Investment Costs

A. Works 10.798 7.276 18.074 40 53 24.542 16.536 41.078 40 53

B. Vehicles 135 203 338 60 1 307 461 768 60 1

C. Equipment and Materials 727 167 894 19 3 1.653 380 2.032 19 3

D. Studies and consultancies 2.550 974 3.524 28 10 5.796 2.213 8.009 28 10

E. Trainings 3.351 625 3.976 16 12 7.616 1.420 9.037 16 12

F. Co-funding 2.640 - 2.640 - 8 6.000 - 6.000 - 8

Total Investment Costs 20.202 9.244 29.446 31 87 45.913 21.010 66.923 31 87

II. Recurrent Costs

A. Operations and maintenance 466 - 466 - 1 1.058 - 1.058 - 1

B. Salaries and allow ances 4.012 - 4.012 - 12 9.119 - 9.119 - 12

Total Recurrent Costs 4.478 - 4.478 - 13 10.177 - 10.177 - 13

Total BASELINE COSTS 24.680 9.244 33.924 27 100 56.091 21.010 77.100 27 100

Physical Contingencies 782 214 995 21 3 1.777 485 2.262 21 3

Price Contingencies 8.071 3.317 11.388 29 34 3.246 1.341 4.587 29 6

Total PROJECT COSTS 33.533 12.775 46.307 28 137 61.113 22.836 83.950 27 109

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104

Programme Financing

14. PRIDE is to be financed by the GOM, IFAD (loan and grant), ASAP grant through IFAD, DFID,

Private sector and beneficiaries. IFAD will finance 31.5% (USD 26.5 million) of the programme costs

(USD 84 million) as a loan to the GOM, on highly concessionary terms and 31.6% (USD 26.5 million)

will be an IFAD grant. ASAP will finance 8.4% (USD 7 million). The government will finance the taxes

and duties (USD 13.2 million, representing 15.7% of total costs). The estimate of taxes and duties

was based on the rates in effect prevailing at the time of the design. In conformity with the principle

that no taxes or duties would be financed out of the proceeds of the IFAD Loan/Grant, any future

changes in the rates and/or structures of taxes and duties would have to apply to the Programme.

Beneficiaries will contribute USD 7.2 million (mainly in kind) representing about 8.7% of Programme

costs. The proposed financing plan is summarised in Table 5.

Table 5: Programme Financing Plan (000 USD)







Subtotal 10.527 19,6 16.294 30,3 17.736 33,0 1.878 3,5 - - - - 7.283 13,6 53.718 64,0



2. Market linkages 1.081 8,2 1.699 12,9 6.881 52,3 - - 498 3,8 3.000 22,8 - - 13.159 15,7


Subtotal 1.940 9,3 2.979 14,2 7.516 35,9 4.984 23,8 498 2,4 3.000 14,3 - - 20.918 24,9




Subtotal 616 6,6 7.210 77,4 1.288 13,8 201 2,2 - - - - - - 9.314 11,1


15. Start-up funds. To support a swift start of programme a start-up financing facility is foreseen to

a total of USD 560,000, to cover specified expenditures during the period between entry into force of

the Project Agreement and the moment conditions for first withdrawal are satisfied. In table 6, the

eligible expenditure items and advance estimates are detailed.

Table 6: Start-up financing facility

Item USD

Office set-up 167,000

Salaries professional team 211,000

support team 81,700

Preparation

WUA training 14,800

Scheme appraisal 18,500

Land & water consultations 27,000 Purchase and installation of accounting software 20,000

Setting up M&E 20,000

Total 560,000

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105

ANNEXES

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106

ANNEX 1: SUMMARY COST TABLES

Table 1: Components Programme Cost Summary

Republic of Malaw i


Components Project Cost Summary


% % Total % % Total




1. Land and w ater governance 1.093 169 1.262 13 4 2.484 384 2.868 13 4

2. Irrigation system development 11.839 7.704 19.543 39 58 26.907 17.508 44.416 39 58

3. Soil and w ater conservation 535 305 840 36 2 1.216 693 1.909 36 2

Subtotal 13.467 8.177 21.645 38 64 30.607 18.585 49.193 38 64


1. Improved agricultural practices 2.645 285 2.930 10 9 6.011 648 6.659 10 9

2. Market linkages 5.200 420 5.620 7 17 11.819 954 12.773 7 17

3. Mainstreaming nutrition 129 22 152 15 - 294 51 345 15 -

Subtotal 7.975 728 8.702 8 26 18.124 1.653 19.777 8 26


1. Know ledge Management, Planning and M&E 403 81 483 17 1 916 183 1.099 17 1

2. Programme coordination 2.835 259 3.094 8 9 6.444 588 7.032 8 9

Subtotal 3.238 339 3.577 9 11 7.359 771 8.130 9 11





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107

Table 2: Expenditure Accounts Programme Cost Summary

Republic of Malaw i


Expenditure Accounts Project Cost Summary


% % Total % % Total



I. Investment Costs

A. Works 10.798 7.276 18.074 40 53 24.542 16.536 41.078 40 53

B. Vehicles 135 203 338 60 1 307 461 768 60 1

C. Equipment and Materials 727 167 894 19 3 1.653 380 2.032 19 3

D. Studies and consultancies 2.550 974 3.524 28 10 5.796 2.213 8.009 28 10

E. Trainings 3.351 625 3.976 16 12 7.616 1.420 9.037 16 12

F. Co-funding 2.640 - 2.640 - 8 6.000 - 6.000 - 8

Total Investment Costs 20.202 9.244 29.446 31 87 45.913 21.010 66.923 31 87

II. Recurrent Costs

A. Operations and maintenance 466 - 466 - 1 1.058 - 1.058 - 1

B. Salaries and allow ances 4.012 - 4.012 - 12 9.119 - 9.119 - 12

Total Recurrent Costs 4.478 - 4.478 - 13 10.177 - 10.177 - 13





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108

Table 3: Expenditure Accounts by Components

Republic of Malaw i


Expenditure Accounts by Components - Base Costs

(USD '000)

Programme management and

Irrigation development and catchment Agriculture for irrigation and coordination

management rain-fed systems Knowledge

Land and Irrigation Improved Management, Physical

water system Soil and water agricultural Market Mainstreaming Planning Programme Contingencies

governance development conservation practices linkages nutrition and M&E coordination Total % Amount

I. Investment Costs

A. Works - 40.028 1.050 - - - - - 41.078 2,2 906

B. Vehicles - - - - - - - 768 768 - -

C. Equipment and Materials 118 - 570 938 - 310 26 70 2.032 6,4 131

D. Studies and consultancies 858 3.597 - 2.177 618 10 522 227 8.009 3,6 285

E. Trainings 1.455 195 270 1.208 5.742 20 62 85 9.037 2,1 186

F. Co-funding - - - - 6.000 - - - 6.000 - -

Total Investment Costs 2.430 43.819 1.890 4.323 12.360 340 610 1.150 66.923 2,3 1.506

II. Recurrent Costs

A. Operations and maintenance - - - 235 - - - 823 1.058 10,0 106

B. Salaries and allow ances 437 596 19 2.101 413 5 488 5.059 9.119 7,1 650

Total Recurrent Costs 437 596 19 2.336 413 5 488 5.882 10.177 7,4 756

Total BASELINE COSTS 2.868 44.416 1.909 6.659 12.773 345 1.099 7.032 77.100 2,9 2.262

Physical Contingencies 261 883 191 290 41 - 5 591 2.262 - -

Price Contingencies

Inflation

Local 879 8.443 447 2.264 1.617 76 400 2.672 16.798 - -

Foreign 24 1.125 54 44 47 2 14 31 1.341 - -

Subtotal Inflation 903 9.568 501 2.308 1.664 78 413 2.703 18.139 - -

Devaluation -720 -6.708 -354 -1.860 -1.320 -61 -330 -2.199 -13.552 - -

Subtotal Price Contingencies 182 2.860 148 448 344 17 84 504 4.587 3,2 146

Total PROJECT COSTS 3.311 48.159 2.248 7.397 13.159 362 1.187 8.127 83.950 2,9 2.408

Taxes 504 9.597 426 806 1.081 53 152 464 13.083 2,5 333

Foreign Exchange 440 18.982 817 726 1.001 53 197 620 22.836 2,3 517

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109

Table 4: Programme Components by Year

Republic of Malaw i


Project Components by Year -- Totals Including Contingencies

(USD '000)


2016 2017 2018 2019 2020 2021 2022 Total





Subtotal 3.192 10.639 13.586 11.493 7.316 6.237 1.254 53.718



2. Market linkages 1.931 4.380 4.510 1.083 534 451 268 13.159


Subtotal 2.872 5.827 5.914 2.438 1.715 1.541 609 20.918




Subtotal 1.657 1.206 1.228 1.345 1.676 1.261 941 9.314


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Table 5: Components by Financiers

Republic of Malaw i


Components by Financiers

(USD '000)







Subtotal 10.527 19,6 16.294 30,3 17.736 33,0 1.878 3,5 - - - - 7.283 13,6 53.718 64,0



2. Market linkages 1.081 8,2 1.699 12,9 6.881 52,3 - - 498 3,8 3.000 22,8 - - 13.159 15,7


Subtotal 1.940 9,3 2.979 14,2 7.516 35,9 4.984 23,8 498 2,4 3.000 14,3 - - 20.918 24,9




Subtotal 616 6,6 7.210 77,4 1.288 13,8 201 2,2 - - - - - - 9.314 11,1


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111

Table 6: Expenditure Accounts by Financiers

Republic of Malaw i


Expenditure Accounts by Financiers

(USD '000)



I. Investment Costs

A. Works 8.896 19,9 13.906 31,1 13.906 31,1 1.034 2,3 - - - - 6.953 15,6 44.696 53,2

B. Vehicles 242 30,0 565 70,0 - - - - - - - - - - 808 1,0

C. Equipment and Materials 443 19,4 195 8,5 91 4,0 1.397 61,2 - - - - 157 6,9 2.284 2,7

D. Studies and consultancies 1.506 17,2 1.613 18,4 3.338 38,1 2.302 26,3 - - - - - - 8.760 10,4

E. Trainings 1.439 14,8 1.031 10,6 5.685 58,4 1.405 14,4 - - - - 172 1,8 9.732 11,6

F. Co-funding -0 - - - 2.502 41,7 - - 498 8,3 3.000 50,0 - - 6.000 7,1

Total Investment Costs 12.527 17,3 17.311 24,0 25.523 35,3 6.138 8,5 498 0,7 3.000 4,2 7.283 10,1 72.280 86,1

II. Recurrent Costs

A. Operations and maintenance 161 12,9 1.084 87,1 - - - - - - - - - - 1.245 1,5

B. Salaries and allow ances 395 3,8 8.087 77,6 1.017 9,8 925 8,9 - - - - - - 10.425 12,4

Total Recurrent Costs 556 4,8 9.171 78,6 1.017 8,7 925 7,9 - - - - - - 11.669 13,9


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112

Table 7: Disbursement Accounts by Financiers

Republic of Malaw i


Disbursement Accounts by Financiers

(USD '000)



1. Works 8.896 19,9 13.906 31,1 13.906 31,1 1.034 2,3 - - - - 6.953 15,6 44.696 53,2

2. Vehicles 242 30,0 565 70,0 - - - - - - - - - - 808 1,0

3. Equipment and Materials 443 19,4 195 8,5 91 4,0 1.397 61,2 - - - - 157 6,9 2.284 2,7

4. Studies and consultancies 1.506 17,2 1.613 18,4 3.338 38,1 2.302 26,3 - - - - - - 8.760 10,4

5. Trainings 1.439 14,8 1.031 10,6 5.685 58,4 1.405 14,4 - - - - 172 1,8 9.732 11,6

6. Co-funding -0 - - - 2.502 41,7 - - 498 8,3 3.000 50,0 - - 6.000 7,1

7. Operations and maintenance 161 12,9 1.084 87,1 - - - - - - - - - - 1.245 1,5

8. Salaries and Allow ances 395 3,8 8.087 77,6 1.017 9,8 925 8,9 - - - - - - 10.425 12,4


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113

Table 8: Local/Foreign/Taxes by Financiers

Republic of Malaw i


Local/Foreign/Taxes by Financiers

(USD '000)



I. Foreign -0 - 8.218 36,0 9.482 41,5 1.584 6,9 - - - - 3.552 15,6 22.836 27,2

II. Local (Excl. Taxes) -0 - 18.264 38,0 17.058 35,5 5.479 11,4 498 1,0 3.000 6,2 3.731 7,8 48.031 57,2

III. Taxes 13.083 100,0 - - - - - - - - - - - - 13.083 15,6

Total Project 13.083 15,6 26.483 31,5 26.540 31,6 7.063 8,4 498 0,6 3.000 3,6 7.283 8,7 83.950 100,0

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114

Table 9: Programme Components by Year – Investment/Recurrent costs

Republic of Malaw i


Project Components by Year -- Base Costs

(USD '000)

Base Cost

2016 2017 2018 2019 2020 2021 2022 Total



2. Irrigation system development 2.177 9.451 11.628 9.849 5.621 4.811 879 44.416


Subtotal 3.039 10.081 12.603 10.469 6.496 5.438 1.067 49.193


1. Improved agricultural practices 880 1.232 1.177 1.109 1.031 937 293 6.659

2. Market linkages 1.913 4.325 4.418 1.003 481 397 236 12.773


Subtotal 2.807 5.674 5.701 2.217 1.514 1.335 529 19.777



2. Programme coordination 1.360 963 963 957 1.329 927 534 7.032

Subtotal 1.550 1.078 1.076 1.164 1.442 1.042 777 8.130

Total BASELINE COSTS 7.397 16.833 19.381 13.850 9.451 7.815 2.374 77.100

Physical Contingencies 252 402 479 403 342 292 92 2.262

Price Contingencies

Inflation

Local 258 1.431 2.902 3.528 3.382 3.709 1.588 16.798

Foreign 17 132 271 321 269 260 71 1.341

Subtotal Inflation 275 1.563 3.172 3.849 3.651 3.969 1.659 18.139

Devaluation -203 -1.126 -2.303 -2.825 -2.738 -3.036 -1.320 -13.552

Subtotal Price Contingencies 71 437 869 1.024 913 933 339 4.587


Taxes 1.077 2.574 3.129 2.669 1.790 1.467 378 13.083

Foreign Exchange 1.668 4.511 5.603 4.786 3.156 2.522 590 22.836

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115

Table 10: Expenditure Accounts by Years -- Totals Including Contingencies

Republic of Malaw i


Expenditure Accounts by Years -- Totals Including Contingencies

(USD '000)


2016 2017 2018 2019 2020 2021 2022 Total

I. Investment Costs

A. Works 1.689 8.662 11.575 10.366 6.116 5.290 998 44.696

B. Vehicles 388 - - - 420 - - 808

C. Equipment and Materials 397 562 350 426 170 275 105 2.284

D. Studies and consultancies 1.241 2.019 2.004 1.390 994 812 299 8.760

E. Trainings 1.935 1.847 2.194 1.234 1.167 870 484 9.732

F. Co-funding 500 2.750 2.750 - - - - 6.000

Total Investment Costs 6.149 15.840 18.873 13.416 8.867 7.247 1.886 72.280

II. Recurrent Costs

A. Operations and maintenance 150 211 198 188 176 165 156 1.245

B. Salaries and allow ances 1.422 1.622 1.657 1.672 1.663 1.627 762 10.425

Total Recurrent Costs 1.572 1.833 1.855 1.860 1.839 1.792 918 11.669


Republic of Malawi




116

ANNEX 2: DETAILED COST TABLES (USD)

Republic of Malawi




117

Table 1.1 – Land and water governance Table 1.1. Land and w ater governance

Detailed Costs Quantities Unit Cost Totals Including Contingencies (USD)

Unit 2016 2017 2018 2019 2020 2021 2022 Total (USD) 2016 2017 2018 2019 2020 2021 2022 Total

I. Investment Costs

A. Preparation activities

1. Scheme implementation and safeguard training /a session 4 - 4 - 4 - - 12 10,000 44.440 - 46.235 - 48.103 - - 138.779

2. Scheme appraisal /b Unit 5 - 5 - 5 - - 15 10,000 55.550 - 57.794 - 60.129 - - 173.473

3. Training of Facilitators /c session 5 - 5 - 5 - - 15 2,000 11.110 - 11.559 - 12.026 - - 34.695

4. Consultation and (re-)design /d Person month 15 - 10 - 5 - - 30 5,000 83.325 - 57.794 - 30.065 - - 171.184

5. Land & Water Consultations and Agreements /e Person month 15 - 10 - 5 - - 30 5,000 83.325 - 57.794 - 30.065 - - 171.184

6. Scheme Implementation Consultations and Agreements /f Person month 15 - 10 - 5 - - 30 5,000 83.325 - 57.794 - 30.065 - - 171.184

Subtotal 361.075 - 288.971 - 210.452 - - 860.498

B. WUA start-up facility

1. Study tours (in-country) Exchange visits /g No 5 5 5 5 5 5 - 30 2,500 13.888 14.165 14.449 14.738 15.032 15.333 - 87.604

2. WUA Constitution and by-law s No 5 - 5 - 5 - - 15 8,000 44.440 - 46.235 - 48.103 - - 138.779

3. WUA Formation /h No 5 - 5 - 5 - - 15 2,000 11.110 - 11.559 - 12.026 - - 34.695

4. WUA leadership /i session 5 - 10 - 15 - 15 45 2,000 11.110 - 23.118 - 36.077 - 37.535 107.840

5. Scheme Operation & Maintenance /j session - 10 10 20 20 30 - 90 5,000 - 56.661 57.794 117.900 120.258 183.995 - 536.609

6. Financial literacy session 5 - 10 - 15 - 15 45 2,000 11.110 - 23.118 - 36.077 - 37.535 107.840

7. WUA establishment fund /k set 5 - 5 - 5 - - 15 5,000 27.775 - 28.897 - 30.065 - - 86.737

Subtotal 119.433 70.826 205.169 132.638 297.639 199.328 75.070 1.100.103

C. WUA inspection and on-demand training

1. Inspection /l No 10 15 15 10 10 15 - 75 2,500 27.775 42.496 43.346 29.475 30.065 45.999 - 219.155

2. Needs-based and On-demand training /m Session 10 10 10 - - - - 30 5,000 55.550 56.661 57.794 - - - - 170.005

3. TA support on WUA issues /n Person month 2 - 2 - 2 - - 6 15,000 33.330 - 34.677 - 36.077 - - 104.084

Subtotal 116.655 99.157 135.816 29.475 66.142 45.999 - 493.244

D. Studies

1. Tracer studies Person month - 1 1 1,5 1,5 1,5 - 6,5 5,000 - 5.666 5.779 8.843 9.019 9.200 - 38.507

2. Thematic review Person month - 1 1 1,5 1,5 1,5 - 6,5 5,000 - 5.666 5.779 8.843 9.019 9.200 - 38.507

Subtotal - 11.332 11.559 17.685 18.039 18.400 - 77.014

E. Land use planning support

1. GIS service provider Person month 7 7 7 7 7 4 4 43 5,000 35.350 36.057 36.778 37.514 38.264 22.302 22.748 229.014

2. Workstation /o Unit 2 - - - - - - 2 5,000 10.100 - - - - - - 10.100

3. A3 printer scanner Inkjet Unit 1 - - - - - - 1 5,500 5.555 - - - - - - 5.555

4. ARCGIS Licences Unit 1 - - - - - - 1 1,900 1.919 - - - - - - 1.919

5. Plotter Unit 1 - - - - - - 1 6,800 6.868 - - - - - - 6.868

6. UPS Unit 3 - - - - - - 3 80 242 - - - - - - 242

7. Hand held GPS Unit 2 - - - - - - 2 500 1.010 - - - - - - 1.010

8. Satellite imagery, aerial photos & maps Set 1 - - - - - - 1 12,500 12.625 - - - - - - 12.625

9. Office material / stationary Set 0,5 0,5 - - - - - 1 5,000 2.525 2.576 - - - - - 5.101

Subtotal 76.194 38.633 36.778 37.514 38.264 22.302 22.748 272.434

Total Investment Costs 673.357 219.948 678.294 217.312 630.536 286.029 97.818 2.803.293

II. Recurrent Costs

A. District Land Officer /p Person day 60 40 40 40 40 - - 220 80 5.333 3.626 3.699 3.773 3.848 - - 20.279

B. District Irrigation staff /q Person day 50 75 100 75 100 75 75 550 80 4.444 6.799 9.247 7.074 9.621 7.360 7.507 52.052

C. Water Users Association Specialist (PCO unit) Person year 1 1 1 1 0,5 0,5 - 5 75,122 83.461 85.130 86.832 88.569 45.170 46.074 - 435.235

Total Recurrent Costs 93.237 95.555 99.778 99.416 58.639 53.433 7.507 507.566

Total 766.594 315.503 778.072 316.727 689.175 339.462 105.325 3.310.859

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118

\a one trainingsession per district (Irrigation Service Division level) including 1 day refresh

\b 1 per scheme, unit cost is average and w ill depend on the size of the scheme

\c 4 facilitators per scheme; community members w ho w ill facilitate future discussion regarding a.o. scheme development

\d tw o meetings for each scheme prior to PRA and scheme (re-)design, incl DSA & travel

\e 1.5 person months per scheme

\f 0.5 person month per scheme; negotiation of beneficiary contribution, formation of WUA temporary executive committee

\g 100 WUA members per tour/visit/scheme

\h includes facilitation of (sub)committee formation sessions, technical trainings (management, f inance, land, w ater management)

\i training every tw o years

\j per scheme; 2 trainings per year

\k On an need basis, contribution to (ie off ice equipment, computer,solar panel,softw are, machinery)

\l One visit p/yr/p WUA starting 1yr after establishment. Initial 3 years include inspection of 10 IRLADP schemes

\m training contents to be identif ied in inspection visits

\n International TA to support PCO WUA specialist on the job; includes DSA, travel

\o including external harddisc

\p includes DSA & travel

\q includes DSA & travel

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119

Table 1.2 – Irrigation system development Republic of Malaw i


Table 1.2. Irrigation system development



I. Investment Costs

A. Development of targeted irrigation schemes

1. Works

a. Lot 1 /a Ha 200 1.033 964 - - - - 2.197 7,792 1.605.464 8.458.064 8.050.964 - - - - 18.114.492

b. Lot 2 /b Ha - - 397 1.192 397 - - 1.986 7,792 - - 3.315.594 10.154.236 3.449.544 - - 16.919.374

c. Lot 3 /c Ha - - - - 282 572 100 954 7,792 - - - - 2.450.306 5.069.526 904.006 8.423.838

Subtotal 1.605.464 8.458.064 11.366.558 10.154.236 5.899.850 5.069.526 904.006 43.457.704

2. Supervising Engineer

a. Lot 1 Ha 200 1.033 964 - - - - 2.197 342 70.466 371.234 353.366 - - - - 795.066

b. Lot 2 Ha - - 397 1.192 397 - - 1.986 342 - - 145.525 445.681 151.405 - - 742.611

c. Lot 3 Ha - - - - 282 572 100 954 342 - - - - 107.547 222.507 39.678 369.732

Subtotal 70.466 371.234 498.892 445.681 258.951 222.507 39.678 1.907.410

3. Studies

a. Feasibility studies /d Study 5 8 7 - - - - 20 25,000 128.775 210.161 187.569 - - - - 526.504

b. Detailed design studies Study 5 10 3 - - - - 18 30,000 154.530 315.241 96.464 - - - - 566.235

c. Safeguard-related studies Study 5 10 5 - - - - 20 40,000 206.040 420.322 214.364 - - - - 840.726

Subtotal 489.345 945.724 498.396 - - - - 1.933.465

Subtotal 2.165.274 9.775.022 12.363.845 10.599.917 6.158.801 5.292.034 943.684 47.298.579

B. Studies and Training

1. Technical exchange session for district staff /e Session - 1 - 1 - 1 - 3 55,000 - 56.661 - 58.950 - 61.332 - 176.943

2. Exchange visits (farmer-to-farmer) for WUAs and their technical subcommittees Session - 5 5 5 5 5 5 30 1,000 - 5.151 5.254 5.359 5.466 5.576 5.687 32.493

Subtotal - 61.812 5.254 64.309 5.466 66.907 5.687 209.436

Total Investment Costs 2.165.274 9.836.834 12.369.100 10.664.227 6.164.267 5.358.941 949.371 47.508.015

II. Recurrent Costs

A. District Irrigation staff /f Person day - 100 100 100 100 100 100 600 80 - 9.066 9.247 9.432 9.621 9.813 10.009 57.188

B. Irrigation system development and inspection

1. Inspection /g Visits - 5 5 10 10 15 15 60 1,000 - 5.666 5.779 11.790 12.026 18.400 18.767 72.428

2. Irrigation engineering (PCO unit) Person year 1 1 1 1 1 1 0,5 6,5 75,122 75.873 77.391 78.938 80.517 82.128 83.770 42.723 521.340


Total 2.241.148 9.928.957 12.463.064 10.765.966 6.268.041 5.470.924 1.020.871 48.158.971

_________________________________

\a Unit cost for construction w orks only

\b Unit cost for construction w orks only

\c Unit cost for construction w orks only

\d including (7) studies to maintain pipeline for future projects

\e including f ield visits for involved district level staff + staff from national level

\f includes DSA & travel

\g Once a year for each scheme, tw o days, 1 PCO staff and 1 District /ISD staff, includes fuel and DSA

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Table 1.3 – Soil and water conservation Republic of Malaw i


Table 1.3. Soil and w ater conservation



I. Investment Costs

A. Training & Planning

1. Planning meetings /a Session 5 5 10 5 10 5 5 45 2,000 11.110 11.332 23.118 11.790 24.052 12.266 12.512 106.180

2. Training in community natural resources management /b Session 15 - 15 - 15 - - 45 2,000 33.330 - 34.677 - 36.077 - - 104.084

3. Support to Natural Resource Management agreement /c Session 15 - 15 - 15 - - 45 2,000 33.330 - 34.677 - 36.077 - - 104.084

Subtotal 77.770 11.332 92.471 11.790 96.207 12.266 12.512 314.348

B. Investments in Soil and Water Conservation measures

1. Additional f lood protection measures /d km - 3 3 3 3 3 - 15 10,000 - 33.997 34.677 35.370 36.077 36.799 - 176.920

2. Restauration of soil cover targeting vulnerable grounds ha 70 140 140 140 140 140 70 840 250 19.443 39.663 40.456 41.265 42.090 42.932 21.895 247.744

3. Tailor-made physical investments for erosion control /e Ha 15 30 30 30 30 30 15 180 5,000 83.325 169.983 173.383 176.850 180.387 183.995 93.837 1.061.761

4. Vetiver grass nurseries /f Unit - 15 - 15 - 15 - 45 500 - 8.499 - 8.843 - 9.200 - 26.541

5. Community nurseries /g Unit - 15 - 15 - 15 - 45 4,000 - 67.993 - 70.740 - 73.598 - 212.331

6. Community w oodlots /h Unit - 15 - 15 - 15 - 45 3,500 - 59.494 - 61.898 - 64.398 - 185.790

Subtotal 102.768 379.629 248.515 394.966 258.555 410.922 115.733 1.911.087


II. Recurrent Costs

A. District Irrigation staff /i Person day 40 40 40 40 40 40 - 240 80 3.555 3.626 3.699 3.773 3.848 3.925 - 22.427

Total Recurrent Costs 3.555 3.626 3.699 3.773 3.848 3.925 - 22.427

Total 184.093 394.587 344.685 410.529 358.610 427.114 128.245 2.247.862

_________________________________

\a One initial planning meeting per scheme (cluster area & buffer zone incl) and tw o yearly follow -up meetings

\b Av. 3 villages in each scheme cluster, training of existing NRM committees

\c Establishment of agreements betw een communities, chiefs and extension off icers

\d Provision for additional f lood protection measures.

\e Prevention of erosion specif ic to the site, e.g. vegetated contour bonds, gabions. 8 ha average per village on needs basis

\f One per village

\g One per village

\h One per village

\i includes DSA & travel

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121

Table 2.1 – Improved agriculture practices Table 2.1. Improved agricultural practices



I. Investment Costs

A. Improved climate information

1. Portable w eather forecasters /a Unit 40 40 20 - - - - 100 350 14.140 14.423 7.356 - - - - 35.918

2. Dissemination of information Lumpsum 1 1 1 1 1 1 1 7 2,000 2.020 2.060 2.102 2.144 2.187 2.230 2.275 15.017

3. Improvement of agro-meteorology system and netw ork /b Stations - 3 4 3 - - - 10 15,000 - 46.359 63.048 48.232 - - - 157.639

4. softw are (soil-w ater relations) Set 1 - - - - - - 1 5,000 5.050 - - - - - - 5.050

5. TA fo conservation agriculture Person month 2 2 2 2 2 2 2 14 5,000 10.100 10.302 10.508 10.718 10.933 11.151 11.374 75.086

Subtotal 31.310 73.144 83.014 61.094 13.119 13.381 13.649 288.711

B. Promotion of Good Agriculture Practices

1. Demonstration sites /c sites 60 120 120 120 120 120 120 780 150 9.999 20.398 20.806 21.222 21.646 22.079 22.521 138.672

2. Input package for lead farmer /d package 120 240 240 240 240 240 240 1.560 200 26.664 54.395 55.482 56.592 57.724 58.878 60.056 369.791

3. Inocculated seed to lead farmers Unit 156 312 234 78 - - - 780 120 20.798 42.428 32.457 11.035 - - - 106.718

4. Seed multiplication f ield /e Unit - 6 24 12 6 - - 48 300 - 2.040 8.322 4.244 2.165 - - 16.771

5. Tensiometers Unit 30 - - - - - - 30 150 5.000 - - - - - - 5.000

6. Post harvest equipment /f Unit - 156 312 234 78 - - 780 150 - 26.517 54.095 41.383 14.070 - - 136.066

7. Farm-level storage units (demonstration) Unit - 5 15 15 10 - - 45 120 - 680 2.081 2.122 1.443 - - 6.326

8. Tractor and ripper /g Unit 1 1 - - - - - 2 50,000 55.550 56.661 - - - - - 112.211

9. GAP TA /h

a. TA Irrigation Agronomist Person month 1 - 1 - 1 - - 3 15,000 16.665 - 17.338 - 18.039 - - 52.042

b. GAP Service Provider North Person month 30 60 60 70 70 70 - 360 2,000 66.660 135.986 138.706 165.060 168.361 171.729 - 846.503

c. GAP Service Provider South Person month 30 60 60 70 70 70 - 360 2,000 66.660 135.986 138.706 165.060 168.361 171.729 - 846.503

Subtotal 149.985 271.973 294.751 330.121 354.762 343.457 - 1.745.048

Subtotal 267.995 475.091 467.994 466.720 451.810 424.415 82.577 2.636.603

C. GAP Studies

1. Adaptive research (all GAPs) trial 5 15 15 15 15 15 - 80 5,000 25.250 77.265 78.810 80.387 81.994 83.634 - 427.340

2. Inventory climate and hydrology information Study 2 - - - - - - 2 15,000 30.300 - - - - - - 30.300

3. Selection potential agricultural practices /i Study 1 - 1 - 1 - - 3 10,000 10.100 - 10.508 - 10.933 - - 31.541

4. Definition Good Agricultural Practices /j Study 1 1 1 1 1 1 - 6 2,000 2.020 2.060 2.102 2.144 2.187 2.230 - 12.742

Subtotal 67.670 79.325 91.420 82.530 95.113 85.864 - 501.923

D. Training and extension activities

1. Farmer to Farmer Extension Network

a. Training of extension staff /k Participant 52 52 52 52 52 52 52 364 100 5.252 5.357 5.464 5.573 5.685 5.799 5.915 39.045

b. Training of agro-dealers Participant 75 75 75 75 - - - 300 20 1.515 1.545 1.576 1.608 - - - 6.244

c. Training (off-site) for lead farmers / FFS representatives Participant 780 780 780 780 780 780 780 5.460 20 15.756 16.071 16.393 16.720 17.055 17.396 17.744 117.135

d. Equipment for Extension staff /l Set 32 32 32 32 32 32 32 224 450 14.544 14.835 15.132 15.434 15.743 16.058 16.379 108.124

e. ICT for agricultural extension /m Lumpsum 1 1 - - - - - 2 50,000 50.500 51.510 - - - - - 102.010

f. Motorcycles Unit 12 - - - - - - 12 3,000 36.360 - - - - - - 36.360

g. Farmer to Farmer f ield tours Participant 1.500 3.600 3.600 3.600 3.600 3.600 1.500 21.000 40 60.600 148.349 151.316 154.342 157.429 160.578 68.245 900.859

Subtotal 184.527 237.667 189.880 193.678 195.912 199.830 108.283 1.309.776

2. Extension Materials

a. Replication adaptive trial designs /n unit 500 - 500 - 500 - - 1.500 10 5.050 - 5.254 - 5.466 - - 15.770

b. Replication Good Agricultural Practices factsheets unit 100 100 100 100 100 100 - 600 25 2.525 2.576 2.627 2.680 2.733 2.788 - 15.928

c. Multiplication farmer training materials unit 500 900 900 500 - - - 2.800 25 12.625 23.180 23.643 13.398 - - - 72.845

Subtotal 20.200 25.755 31.524 16.077 8.199 2.788 - 104.544

Subtotal 204.727 263.422 221.404 209.755 204.111 202.618 108.283 1.414.320


II. Recurrent Costs

A. Agriculture and extension specialist (PCO unit) Person year 1 1 1 1 1 0,5 - 5,5 75,122 83.461 85.130 86.832 88.569 90.340 46.074 - 480.406

B. Farmer to Farmer Extension Network

1. Agriculture extension staff /o Person day 2.500 3.400 3.400 3.400 3.400 3.400 1.500 21.000 80 202.000 280.214 285.819 291.535 297.366 303.313 136.491 1.796.738

C. Extension Coordination

1. Support for regional extension coordination /p Workshop - 16 16 16 16 16 - 80 300 - 5.439 5.548 5.659 5.772 5.888 - 28.307

2. Support for Scheme review /q Workshop - 16 16 16 16 16 - 80 300 - 5.439 5.548 5.659 5.772 5.888 - 28.307

3. Motorcycles (O&M) /r lumpsum 3 6 2 2 - - - 13 550 1.833 3.740 1.271 1.297 - - - 8.141

4. Tractor & Ripper (O&M) /s Ha 1.000 800 600 400 200 - - 3.000 60 66.660 54.395 41.612 28.296 14.431 - - 205.393

Subtotal 68.493 69.013 53.980 40.911 25.976 11.776 - 270.149

D. Linking farmers to value cahin actors

1. District Off icer allow ances Person day 16 16 16 16 16 16 - 96 80 1.293 1.319 1.345 1.372 1.399 1.427 - 8.155

Total Recurrent Costs 355.246 435.676 427.976 422.387 415.081 362.590 136.491 2.555.447

Total 926.949 1.326.659 1.291.808 1.242.486 1.179.235 1.088.868 341.000 7.397.005

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122

_________________________________

\a Ten per district to include the EPAs

\b Improvement of w eather information collection and dissemination through upgrade of stations and netw ork. The upgrade of a total of 10 stations in targeted districts. is assumed

\c Tw o sites per district w here small and medium sized schemes are located

\d per lead farmer at least: fertilizer (min. 2 bags), draught tolerant seed (2 bag), small tools

\e This activity w ill take into account the needs of local communities to adapt to climatic changes. Seed varieties w ill be selected accordingly (e.g. early maturing).

\f one per f ield school

\g for demonstration in North and South project district

\h for demonstration in North and South project district

\i including definition of adaptive trials

\j including factsheets

\k including allow ance and travel

\l Including: protective clothing, communication, stationary

\m To be defined in conjunction w ith extension services and telecom operators, inlcudes usage instruction and training

\n Leaflets

\o based on 0.5 contactday/ 6 w eeks per FFS (780)

\p Four meetings (30 particpants) per year at district HQ; assumes a total of 4 districts

\q Four meetings (30 particpants) per year at district HQ; assumes a total of 4 districts

\r Unit cost is based on the assumption of 18% of purchase price of about $3,000). It is further assumed that a total of 5 vehicles w ill be operational at anyone year during project

\s cost contribution w ith gradual w ithdraw al, aiming for a transfer to a (youth) enterprise

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123

Table 2.2 – Market Linkages Republic of Malaw i


Table 2.2. Market linkages



I. Investment Costs

A. Value Chain Analyses and Market studies

1. TA for updating value chain studies /a Person month 2 2 2 - - - - 6 5,000 10.100 10.302 10.508 - - - - 30.910

2. TA for Market Analysis /b Person month 4,5 6 4,5 - - - - 15 5,000 22.725 30.906 23.643 - - - - 77.274

Subtotal 32.825 41.208 34.151 - - - - 108.184

B. Formation and support of commodity platforms

1. Launch w orkshops /c Workshop 1 2 2 1 - - - 6 2,000 2.020 4.121 4.203 2.144 - - - 12.488

2. Quarterly Netw ork training /d meeting 12 24 24 18 12 6 - 96 1,000 12.120 24.725 25.219 19.293 13.119 6.691 - 101.167

3. Quarterly communication /e Lumpsum - 1 1 1 1 1 1 6 1,000 - 1.030 1.051 1.072 1.093 1.115 1.137 6.499

Subtotal 14.140 29.876 30.473 22.508 14.212 7.806 1.137 120.153

C. Farmer - commodity platform interactions

1. Support to farmer representation /f Session 16 16 16 16 16 16 - 96 5,000 80.800 82.416 84.064 85.746 87.461 89.210 - 509.696

2. Publicity and sharing information Lumpsum 1 1 1 1 1 1 1 7 1,000 1.010 1.030 1.051 1.072 1.093 1.115 1.137 7.509

Subtotal 81.810 83.446 85.115 86.817 88.554 90.325 1.137 517.205

D. Farmers business school and farmers organisations

1. Farmer business school phase 1 /g Session 780 780 780 - - - - 2.340 1,600 1.260.480 1.285.690 1.311.403 - - - - 3.857.573

2. Farmer business school phase 2 /h Session - - - 780 - - - 780 800 - - - 668.816 - - - 668.816

3. Farmer business school phase 3 /i Session - - - - 780 - - 780 400 - - - - 341.096 - - 341.096

4. Farmer business school phase 4 /j Session - - - - - 780 780 1.560 300 - - - - - 260.938 266.157 527.096

Subtotal 1.260.480 1.285.690 1.311.403 668.816 341.096 260.938 266.157 5.394.580

E. Value chain improvement support

1. Publicity and aw areness campaigns in focal areas Lumpsum - 1 1 1 - - - 3 2,000 - 2.060 2.102 2.144 - - - 6.306

2. Value chain start-up facility /k Lumpsum - 1 2 2 - - - 5 100,000 - 103.020 210.161 214.364 - - - 527.545

Subtotal - 105.080 212.262 216.508 - - - 533.850

F. MICF Irrigation Window /l Lumpsum 500.000 2.750.000 2.750.000 - - - - 6.000.000

Total Investment Costs 1.889.255 4.295.300 4.423.405 994.649 443.862 359.069 268.432 12.673.973

II. Recurrent Costs

A. Value Chain Specialist (PCO unit) Person year 0,5 1 1 1 1 1 - 5,5 75,122 41.730 85.130 86.832 88.569 90.340 92.147 - 484.749

Total Recurrent Costs 41.730 85.130 86.832 88.569 90.340 92.147 - 484.749

Total 1.930.985 4.380.430 4.510.238 1.083.218 534.203 451.216 268.432 13.158.722

_________________________________

\a 6 existing studies need to be updated, 1 person month per study

\b Market Analysis (national and regional) 1.5 person month per study for a total of 10 commodities

\c 3 day w orkshop involving 25 participants of 3 Product platforms

\d One training per quarter for each of the commodity netw orks

\e All commodity netw orks in one new sletter, in quarterly issue

\f One representative per farmer group, 25 persons per meeting w ith value chain actor, each representative participate every tw o years, including venue

\g 1 session per farmer group (25 farmers) per yr, 100% intensity support

\h 1 session per farmer group (25 farmers) per yr, 50% intensity support

\i 1 session per farmer group (25 farmers) per yr, 25% intensity support

\j 1 session per farmer group (25 farmers) per yr, 10% intensity support

\k For demand based investments aimed at strenghtening the farmer market linkages

\l Irrigation Window under the Malaw i Innovation Challange Fund

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124

Table 2.3 – Mainstreaming nutrition Republic of Malaw i


Table 2.3. Mainstreaming nutrition Unit

Detailed Costs Quantities Cost Base Cost (USD)


I. Investment Costs

A. Mainstreaming nutrition

1. Nutrition study /a Person month 2 - - - - - - 2 5,000 10.000 - - - - - - 10.000

2. Field Nutrition Officer training /b Session 2 3 3 2 - - - 10 2,000 4.000 6.000 6.000 4.000 - - - 20.000

3. Extension Materials and Mass Media /c Lumpsum - 10.000 - - - - - 10.000

4. Improved cooking stoves (demonstration sites) /d Household - 5.000 5.000 5.000 - - - 15.000 20 - 100.000 100.000 100.000 - - - 300.000

Total Investment Costs 14.000 116.000 106.000 104.000 - - - 340.000

II. Recurrent Costs

A. Field Nutrition Officer (FO) allow ances Person day 3 9 11 13 13 13 - 62 80 240 720 880 1.040 1.040 1.040 - 4.960

Total Recurrent Costs 240 720 880 1.040 1.040 1.040 - 4.960

Total 14.240 116.720 106.880 105.040 1.040 1.040 - 344.960

_________________________________

\a Update existing nutrition studies, approaches

\b one session for 25 Nutrition Officers

\c It includes food group charts, demonstration materials and food preparation, and printing of training manual

\d Unit cost per stove includes, promotion, construction demonstration and maintenace follow -up

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125

Table 3.1 – Programme Coordination Table 3.1. Programme Coordination



I. Investment Costs

A. General coordination

1. Four Wheel Vehicles Unit 6 - - - 6 - - 12 64,000 387.840 - - - 419.810 - - 807.650

2. Computer Softw are and Printer Set 16 - - - - - - 16 2,000 32.320 - - - - - - 32.320

3. Financial & accounting softw are Set 1 - - - - - - 1 10,000 10.100 - - - - - - 10.100

4. Multifunctional printer/coopier/scanner Set 1 - - - - - - 1 5,000 5.555 - - - - - - 5.555

5. Office Furniture /a Set 10 - - - - - - 10 1,500 16.665 - - - - - - 16.665

6. Office Furniture Facilitation Offices /b Set 4 - - - - - - 4 1,500 6.666 - - - - - - 6.666

7. Projector Unit 1 - - - - - - 1 500 556 - - - - - - 556

8. Digital camera w ith GPS Coordinates Unit 3 - - - - - - 3 500 1.667 - - - - - - 1.667

9. CPO Staff capacity building /c Per annum 0,5 1 1 1 1 1 - 5,5 15,000 7.575 15.453 15.762 16.077 16.399 16.727 - 87.993

10. Start up Workshop Workshop 1 - - - - - - 1 2,000 2.020 - - - - - - 2.020

11. Audit Unit 1 1 1 1 1 1 1 7 5,000 5.050 5.151 5.254 5.359 5.466 5.576 5.687 37.543

12. Supervision Mission /d Unit 2 2 2 1 2 2 1 12 12,000 24.240 24.725 25.219 12.862 26.238 26.763 13.649 153.696

13. Mid-term review Unit - - - 1 - - - 1 24,000 - - - 25.724 - - - 25.724

14. Programme completion Mission Unit - - - - - - 1 1 24,000 - - - - - - 27.298 27.298


II. Recurrent Costs

A. Salaries (PCO unit)

1. Professional team

a. Programme Director /e Person year 1 1 1 1 1 1 0,5 6,5 86,225 95.796 97.712 99.666 101.659 103.693 105.766 53.941 658.234

b. Financial controller /f Person year 1 1 1 1 1 1 0,5 6,5 75,122 83.461 85.130 86.832 88.569 90.340 92.147 46.995 573.474

c. Coordinator North /g Person year 1 1 1 1 1 1 0,5 6,5 75,122 83.461 85.130 86.832 88.569 90.340 92.147 46.995 573.474

d. Coordinator South /h Person year 1 1 1 1 1 1 0,5 6,5 75,122 83.461 85.130 86.832 88.569 90.340 92.147 46.995 573.474

e. Procurement Officer /i Person year 1 1 1 1 1 1 0,5 6,5 75,122 83.461 85.130 86.832 88.569 90.340 92.147 46.995 573.474

f. Environmental Coordinator /j Person year 1 1 1 1 1 1 0,5 6,5 75,122 83.461 85.130 86.832 88.569 90.340 92.147 46.995 573.474

g. Accountant /k Person year 1 1 1 1 1 1 0,5 6,5 75,122 83.461 85.130 86.832 88.569 90.340 92.147 46.995 573.474

h. Gender & Targeting Specialist /l Person year 1 1 1 0,5 0,5 - - 4 36,516 40.569 41.381 42.208 21.526 21.957 - - 167.641

Subtotal 637.129 649.871 662.868 654.600 667.692 658.650 335.911 4.266.720

2. Support team

a. Assistant Procurement Officer /m Person year 1 1 1 1 1 1 0,5 6,5 36,516 40.569 41.381 42.208 43.052 43.913 44.792 22.844 278.760

b. Assistant Accountant /n Person year 1 1 1 1 1 1 0,5 6,5 36,516 40.569 41.381 42.208 43.052 43.913 44.792 22.844 278.760

c. PM&E Officer Assistant /o Person year 1 1 1 1 1 1 0,5 6,5 36,516 40.569 41.381 42.208 43.052 43.913 44.792 22.844 278.760

d. Assistant Coordinator North /p Person year 1 1 1 1 1 1 0,5 6,5 36,516 40.569 41.381 42.208 43.052 43.913 44.792 22.844 278.760

e. Assistant Coordinator South /q Person year 1 1 1 1 1 1 0,5 6,5 36,516 40.569 41.381 42.208 43.052 43.913 44.792 22.844 278.760

f. Administrative assistant /r Person year 1 1 1 1 1 1 0,5 6,5 9,000 9.999 10.199 10.403 10.611 10.823 11.040 5.630 68.705

g. Office Assistant/Receptionist /s Person year 1 1 1 1 1 1 0,5 6,5 7,040 7.821 7.978 8.137 8.300 8.466 8.636 4.404 53.743

h. Driver /t Person year 4 4 4 4 4 4 - 24 5,492 24.406 24.895 25.392 25.900 26.418 26.947 - 153.959

Subtotal 245.073 249.975 254.974 260.074 265.275 270.581 124.253 1.670.205

Subtotal 882.202 899.846 917.843 914.673 932.967 929.230 460.165 5.936.925

B. Operating Costs

1. Per Diem for in-country travel /u Person day 250 500 500 500 500 500 500 3.250 70 19.443 39.663 40.456 41.265 42.090 42.932 43.791 269.640

2. PCO Office Maintenance Month 6 12 12 12 12 12 12 78 2,000 13.332 27.197 27.741 28.296 28.862 29.439 30.028 184.896

3. Facilitation Office Maintenance /v Month 6 12 12 12 12 12 12 78 2,000 13.332 27.197 27.741 28.296 28.862 29.439 30.028 184.896

4. Vehicle O&M + insurance Per Year 4,5 6 6 6 6 6 6 40,5 7,000 34.997 47.595 48.547 49.518 50.508 51.519 52.549 335.233

Subtotal 81.103 141.653 144.486 147.375 150.323 153.329 156.396 974.664

Total Recurrent Costs 963.305 1.041.498 1.062.328 1.062.049 1.083.290 1.082.560 616.560 6.911.589

Total 1.463.558 1.086.827 1.108.564 1.122.071 1.551.203 1.131.625 663.195 8.127.042

Republic of Malawi




126

\a This includes furniture for the PCO staff and the Board/Meeting Room

\b Includes furniture for North and South off ice, 2 sets per off ice

\c This includes attendance to international w orkshops/events

\d every year one implemention support and one follow -up mission

\e Salary computed as the minimum of the National Professional Project Personnel Salary Scale (Annual Gross, November 2013) for a Coordinator. It includes a gratuity of 10%.

\f Salary computed as the minimum of the National Professional Project Personnel Salary Scale (Annual Gross, November 2013) for a Senior professional. It includes a gratuity of 10%.

\g Salary computed as the minimum of the National Professional Project Personnel Salary Scale (Annual Gross, November 2013) for a Senior professional. It includes a gratuity of 10%.

\h Salary computed as the minimum of the National Professional Project Personnel Salary Scale (Annual Gross, November 2013) for a Senior professional. It includes a gratuity of 10%.

\i Salary computed as the minimum of the National Professional Project Personnel Salary Scale (Annual Gross, November 2013) for a Senior professional. It includes a gratuity of 10%.

\j Salary computed as the minimum of the National Professional Project Personnel Salary Scale (Annual Gross, November 2013) for a Senior professional. It includes a gratuity of 10%.

\k Salary computed as the minimum of the National Professional Project Personnel Salary Scale (Annual Gross, November 2013) for a Senior professional. It includes a gratuity of 10%.

\l Salary computed as the minimum of the National Professional Project Personnel Salary Scale (Annual Gross, November 2013) for a Senior professional. It includes a gratuity of 10%.

\m Salary computed as the minimum of the National Professional Project Personnel Salary Scale (Annual Gross, November 2013) for a Junior professional. It includes a gratuity of 10%.

\n Salary computed as the minimum of the National Professional Project Personnel Salary Scale (Annual Gross, November 2013) for a Junior professional. It includes a gratuity of 10%.

\o Salary computed as the minimum of the National Professional Project Personnel Salary Scale (Annual Gross, November 2013) for a Junior professional. It includes a gratuity of 10%.

\p Salary computed as the minimum of the National Professional Project Personnel Salary Scale (Annual Gross, November 2013) for a Junior professional. It includes a gratuity of 10%.

\q Salary computed as the minimum of the National Professional Project Personnel Salary Scale (Annual Gross, November 2013) for a Junior professional. It includes a gratuity of 10%.

\r Salary computed as the minimum of the National Professional Project Support Personnel Salary Scale (Annual Gross) at Level 3. It includes a gratuity of 10%.

\s Salary computed as the minimum of the National Project Support Personnel Salary Scale (Annual Gross, November 2013) at Level 2. It includes a gratuity of 10%.

\t Salary computed as the minimum of the National Project Support Personnel Salary Scale (Annual Gross, November 2013) at Level 1. It includes a gratuity of 10%.

\u DSA includes transport and lodging

\v Includes maintenance for North and South Office

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127

Table 3.2. Knowledge Management and Planning, Monitoring and Evaluation Republic of Malaw i


Table 3.2. Know ledge Management and Planning, Monitoring & Evaluation

Detailed Costs Quantities Unit Cost Base Cost (USD)


I. Investment Costs

A. M&E System

1. Establishment of M&E and Know ledge Management systems and strategies contract 1 - - - - - - 1 20,000 20.000 - - - - - - 20.000

2. Baseline incl MPAT /a Study 1 - - - - - - 1 110,000 110.000 - - - - - - 110.000

3. Mid-term survey incl MPAT /b Study - - - 1 - - - 1 80,000 - - - 80.000 - - - 80.000

4. Final impact surveys incl. MPAT /c Study - - - - - - 1 1 110,000 - - - - - - 110.000 110.000

Subtotal 130.000 - - 80.000 - - 110.000 320.000

B. Identification of lessons learned

1. Thematic studies contract - 2 2 2 2 2 2 12 10,000 - 20.000 20.000 20.000 20.000 20.000 20.000 120.000

2. Thematic w orkshops Workshop 4 4 4 4 4 4 4 28 2,000 8.000 8.000 8.000 8.000 8.000 8.000 8.000 56.000

3. Drafting and revision of fact sheets Unit 2 4 4 4 4 4 4 26 1,000 2.000 4.000 4.000 4.000 4.000 4.000 4.000 26.000

Subtotal 10.000 32.000 32.000 32.000 32.000 32.000 32.000 202.000

C. Dissemination of lessons learned

1. National w orkshop on key themes (climate-smart agriculture, value chains, land tenure, irrigation) Workshop - 1 - 1 - 1 - 3 2,000 - 2.000 - 2.000 - 2.000 - 6.000

2. Publication of fact sheets-lessons learned Per annum 2 4 4 4 4 4 4 26 1,000 2.000 4.000 4.000 4.000 4.000 4.000 4.000 26.000

3. Website design Contract 1 - - 1 - - - 2 10,000 10.000 - - 10.000 - - - 20.000

4. Website maintenance Per annum - 1 1 1 1 1 1 6 1,000 - 1.000 1.000 1.000 1.000 1.000 1.000 6.000

Subtotal 12.000 7.000 5.000 17.000 5.000 7.000 5.000 58.000

D. Reporting

1. Progress reports (half-yearly) Unit 2 2 2 2 2 2 2 14 500 1.000 1.000 1.000 1.000 1.000 1.000 1.000 7.000

2. Progress notes PSC (half-yearly) Unit 2 2 2 2 2 2 2 14 100 200 200 200 200 200 200 200 1.400

3. Progress notes PSC (half-yearly) Unit - - - 1 - - - 1 2,000 - - - 2.000 - - - 2.000

4. Programme Completion Report Contract - - - - - - 1 1 20,000 - - - - - - 20.000 20.000

Subtotal 1.200 1.200 1.200 3.200 1.200 1.200 21.200 30.400

Total Investment Costs 153.200 40.200 38.200 132.200 38.200 40.200 168.200 610.400

II. Recurrent Costs

A. Planning Monitoring & Evaluation (PM&E) Officer /d Person year 0,5 1 1 1 1 1 1 6,5 75,122 37.561 75.122 75.122 75.122 75.122 75.122 75.122 488.293


Total 190.761 115.322 113.322 207.322 113.322 115.322 243.322 1.098.693

_________________________________

\a including census; establishing and revisiting RIMS baseline and application of MPAT (Multidimensional Poverty Assessment Tool)

\b and application of MPAT (Multidimensional Poverty Assessment Tool)

\c This includes the f inal Beneficiary Impact Sudy that w ould be used to inform the Programme Completion Report

\d Profile includes Know ledge Management

Republic of Malawi



Appendix 10: Economic Analysis

129

Appendix 10: Economic and Financial Analysis

Table A

Beans Onions Irish Potato Tomato Cabbage Farm 1 Farm 2

PY125,722- 44,113- 61,561- - - - - 36,770- 55,961-

PY24,487- 15,599- 37,904- 181,105- 707,336- 174,889- 229,685- 66,106- 60,679

PY3 14,678 30,024 23,710- 403,124 152,372- 20,242- 7,503 19,328- 198,257

PY430,249 80,210 37,127 987,353 929,807 132,903 157,427 53,874 391,428

PY540,900 100,740 55,415 1,685,888 1,623,512 403,159 361,117 101,709 549,918

PY640,900 100,740 55,415 2,088,075 2,622,447 538,287 503,803 150,772 698,696

PY7 40,900 100,740 55,415 2,088,075 2,622,447 538,287 503,803 150,772 698,696

PY840,900 100,740 55,415 2,088,075 2,622,447 538,287 503,803 150,772 698,696

PY940,900 100,740 55,415 2,088,075 2,622,447 538,287 503,803 150,772 698,696

PY1040,900 100,740 55,415 2,088,075 2,622,447 538,287 503,803 150,772 698,696

109,995 283,743 66,328 5,997,705 6,568,232 1,260,435 1,157,695 301,060 2,129,467

250 645 151 13,631 14,928 2,865 2,631 684 4,840

60% 71% 24% 323% 105% 88% 77% 49% 227%

NPV (Mk)

NPV (US$)

FIRR (@12%)

F

I

N

A

N

C

I

A

L

A

N

A

L

Y

S

I

S

Crop Models Farm Models

Crop Models Incremental Benefits (Mk)Farm Models

Incremental Benefits

Table C

FINANCIA

L

MAIN ASSUMPTIONS & SHADOW PRICES1

Output Av. Incremental Price (Mk/kg) Input prices Price (Mk)

Seeds (per Kg) 681

Farmyard manure (per ton) 2000

Basal fertilizer (per kg) 320

Top dress fertilizer (per Kg) 300

Herbicides (per Kg) 7000

Insecticides (per litre) 2200

Fungicide (per Kg) 3500

Gypsum (kg) 400

ECONOM

IC


Irish Potato 209% 240

Tomato 125% 760FINANCIA

L

Cabbage NO WOP 200

Beans 30% 350

Onions 153% 600

Output Av. Incremental Price (Mk/kg) Input prices

Maize 88% 80

Groundnut 125% 350

440 12%

396 12%

0.9 0.9

0.65 1.06ECONOM

IC


Shadow Exchange rate (SER) Social Discount rate

Standard Conversion Factor Output conversion factor (average)

Shadow Wage Rate Factor (SWRF) Input Conversion factor (average)

Table D

Items Target HH Y 1 Y 2 Y 3 Y 4 Y 5 Y6 Y7 Total


Adoption rate 80% 5% 20% 20% 20% 10% 5% 5%

No. of HH 1600 80 320 320 320 160 80 80 1,360

Cummulative no. of HH 320 640 960 1280 1440 1520 1600 7760


Lot 1 in ha 439 1033 725 2197

Lot 2 in ha 397 1192 397 1986

Lot 3 in ha 191 572 191 954

Total 439 1033 1122 1192 588 572 191 5137

adoption rate 90% 5,137

no. of HH/a 15750 1,362 3,206 3,482 3,699 1,825 1,775 593 15,942

cummulative no. of HH 1,362 4,568 8,050 11,750 13,574 15,350 15,942

Total no. of HH 1,442 3,526 3,802 4,019 1,985 1,855 673 17,302

Total cummulative no. of HH 17350 1,442 4,968 8,770 12,790 14,774 16,630 17,302

Beneficiaries, Adoption Rate, Phasing in

Table B

PROJECT COSTS AND INDICATORS FOR LOGFRAME

TOTAL PROJECT COSTS (in million USD) 83.95 8.13

Beneficiaries 97,500 People 19,500 Households 800 groups

Cost per beneficiary 861 USD x person 4,305 USD x HHAdoption

rates

Base costs 77.1 PMU

Agriculture for irrigation

and rain-fed systems20.9

Good agricultural practices and value

chain improvements adopted, nutrition

education & improved stoves

17,000 households adopt better agricultural

practices; yields increase, higher income,

productivity and more diversification. 15,000

HHs gain nutrition education. 15000 stoves are

improved.

Programme

management and

coordination

9.3Knowledge management on good

agricultural practices and value chains

85%

Components and Cost (USD million) Outcomes and IndicatorsIrrigation development

and catchment

management

53.7 Development of 15 irrigation schemes. 5200 ha covered by irrigation schemes; 1000

ha of soil and water conservation.

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130

Table E

NET

INCREMENT

AL BENEFITS

PY1 -195 4,635 1,186 5,821 -6,016

PY2 -445 11,953 1,320 13,273 -13,717PY3 -54 13,926 1,309 15,235 -15,289PY4 1,443 9,325 1,285 10,610 -9,166

PY5 4,540 6,007 1,246 7,253 -2,713PY6 8,563 4,812 1,192 6,004 2,559

PY7 12,964 1,249 551 1,800 11,164

PY8 16,626 0 551 551 16,075

PY9 19,275 0 551 551 18,724

PY10 20,674 0 551 551 20,123

PY11 21,421 0 551 551 20,870

PY12 21,609 0 551 551 21,058

PY13 21,609 0 551 551 21,058

PY14 21,609 0 551 551 21,058

PY15 21,609 0 551 551 21,058

PY16 21,609 0 551 551 21,058

PY17 21,609 0 551 551 21,058

PY18 21,609 0 551 551 21,058

PY19 21,609 0 551 551 21,058

PY20 21,609 0 551 551 21,058

29,770

NPV@12 % (Mk '000 ) 13,098,790

20.0%

NPV@12% (USD '000)

EIRR

E

C

O

N

O

M

I

C

A

N

A

L

Y

S

I

S

NET INCREMENTAL COSTS

Cash

Flow

(USD

'000)

Total

Incremental

Benefits

(USD'000)

Economic

Investment

Costs

(USD'000)

Economic

Recurrent

Costs

(USD'000)

Total

Increment

al Costs

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131

Table F

?% IRR (%)NPV (USD

M)

20% 29,755

-10% 18%22,484

-20% 16%15,214

-50% 10% 6,599-

10% 22%37,026

Project benefits 20% 23%44,297

Project costs 10% 18%25,460

20% 17% 21,165

50% 14%8,279

17%19,965

15%11,224

1 year lag in ben.

SENSITIVITY ANALYSIS (SA)

Link with the risk matrix

Base scenario

Project benefits

Low implementation readiness and GoM capacity hamper start-up of

Programme; allocation of land resources, registration of WUAs and

extreme events delays implementation progress; achievement of

inclusiveness and local l ivelihood improvements takes longer than

foreseen. 2 years lag in ben.

Availability of rural financial services more costly than foreseen;

Extreme events affecting market prices.

Project benefits

Project benefits

Project benefits

Inadequate funds reserved for catchment management; unit cost for

irrigation development higher than foreseen; cost for climate-proof

(extremen events) infrastructure higher than foreseen.Project costs

Project costs

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132

Financial analysis

Objectives & scope

1. The objectives of this financial analysis are: (i) to assess the financial viability of the development interventions promoted under PRIDE; (ii) to examine the impact of Programme interventions on the net incomes of the households (HHs) targeted; and (iii) to provide the basis for the economic analysis of the Programme.

Assumptions

2. The following assumptions underlie the financial analysis of the Programme:

The horticulture crops to be produced under irrigation will start generating benefits in year 2. The year 1 benefits are kept equal to the WOP situation, because in Y1 the first irrigation lot will be constructed with little incremental benefits realized.

The horticulture crops will reach full production in year 6 and the rain-fed crops in year 4 or 5.

The national average cultivable land holding in Malawi is 0.87 ha per household and this is used as standard size for the HH farm models in the analysis. The irrigation schemes will be subdivided into 0.1ha plots and it is assumed that the average irrigation landholding will be 0.29 ha per HH, which is around 30% of the 0.87ha total land holding. The 0.3ha is assumed because: (i) not all HHs will adopt farming in the irrigated scheme and therefore some farming HH will have the opportunity to obtain more than one 0.1ha plot; (ii) experience with existing irrigation schemes in Malawi learns that to have a meaningful impact for a HH a minimum of 0.2ha is needed; and (iii) in Malawi, 0.3ha is a widely used and accepted land size to have on irrigated scheme.

Of the irrigated land, 10% is deducted for the construction of on-farm irrigation infrastructure, like outlets, bunds, canals and drains.

The target HHs in the programme area practice subsistence rain-fed agriculture, producing maize as main staple, groundnut and/or beans complemented with a small selection of various vegetables. Crop husbandry and harvesting techniques are traditional, and the rural households have limited access to new and emerging technologies. There are opportunities for enhancing productivity increases by adopting inter-cropping and by better sequencing of crops under rain-fed conditions, in particular for maize and groundnut.

Sufficient family labour is available for any extended and expanded agricultural operations. For the intensive agricultural activities, like land preparation, weeding and harvest, HHs usually hire labour. Agricultural mechanisation or animal drawn ploughs are rarely used.

Farmers currently retain seeds and planting materials from their own harvest. Seed selection and exchange is not commonly practiced. The households carry forward sufficient seed to next season's crops, but these are often of poor quality. Availability of quality seed and seedlings remains an issue. With improved practices and extension support, crop productivity can be enhanced. The Good Agricultural Practices (GAP) and irrigation models assume purchases and the use of improved seed (certified and quality declared seed). Furthermore, it is assumed that for crops like beans, groundnut and Irish potato, farmers will replace every year, 1/3 of their seed for new seed.

With training, technology support and input services, the rural households are capable of undertaking improved farming practices and thereby enhancing productions at farm level. Soil health is poor and therefore there is a need for continued application of farm yard manure and compost to restore the soil health and at the same time sustain productivity. Application and availability of manure remains limited because of the small livestock herds. The application and availability of compost is also limited because it competes with animal feed. With GAP it is assumed that farmer HHs will produce and use 1t/ha of compost, including soil cover from harvest residues.

In the current situation, all marketable surplus is sold fresh to local traders, buyers or middlemen. Households produce little marketable surplus and do not have any organised marketing structure or institutions, but generally understand the advantages of collective

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marketing and are willing to organise themselves in groups for receiving any technology packages and output marketing.

Market demand is assumed for all analysed crops, especially in the off-season window during which PRIDE beneficiaries would aim to sell their high value crops under irrigation. The Market Linkage component aims to expand and strengthen market linkages.

The Farm Input Subsidy Program (FISP) of the Government of Malawi (GOM) is not taken into account in the analysis. This is for three reason: (i) the FISP packages might not be available to all the PRIDE beneficiaries; (ii) the crop models and HH models should be financially viable without any subsidy; and (iii) FISP is not available for high value crops which are generally targeted by the interventions proposed under PRIDE. Over the past 10 years, FISP has contributed to an increase of use of hybrid maize seed, fertilizer and chemicals by all farmers.

With multiple Micro Finance Institutions present and active in Malawi, the target HHs have access to institutional credit mostly in the form of group credit. It is assumed that the target HHs can access such services for essential seasonal credit. However the lending rates in Malawi are high with rates between 40%–60% per annum.

Transport by head load is the most common mode of transport within and between villages and to nearby markets. On average, cost of transportation from farm gate to the nearest market or main road is estimated at MK 62 per ton per km. The distance between farms and the nearest main road is estimated at 10 Km.

Within Malawi commodity price differences exist, because of harvest seasonality and spatially separated markets with little price information exchange. For the analysis, country averages are used based on March 2015 input and output price estimates.

Given the wide range of rain-fed and irrigated farming systems and cropping patterns existing in the country’s agro-ecological zones it is not possible to describe all rain-fed and potential irrigated crop production models. The analysis will consider some of the most common high value irrigated crops, such as onion, Irish potato, tomato, and cabbage.

Taxes. The financial indicator chosen for the analysis is the net income before tax. Therefore taxes are not taken into account.

Models

3. Overview. Nine financial models have been developed, comprising of two farm HH models and 7 crop models. The two Farm HH models are aggregated from crop models based on two different farm systems: (i) rain-fed farming only; and (ii) rain-fed and irrigated farming combined. Crop models are developed for Maize, Groundnut, Bean, Onion, Irish Potato and Cabbage. The economic rationale for PRIDE is based on: (i) improved agricultural productivity and reduction of post-harvest losses in both rain-fed only as well as in rain-fed - irrigated farm systems as a result of the implementation of GAP (e.g. intercropping, post-harvest handling & storage, minimum soil disturbance, crop rotation, composting); and (ii) increased cropping intensity and switching to high value crops on irrigated schemes, including during dry-season periods. With a potential of yields increasing by 50% - 100% when using GAP and integrated soil fertility measures, improving HH income and food security.

4. The list of HH models used in the analysis is provided in table 1 and a description of the financial and economic models is reported in what follows. The detailed budgets are reported in the annex 1 of the present appendix.

Table 1: List of HH Farm Financial Models

Farm model Farming System

Rain-fed crop models: Irrigated crop models:

Farm HH model 1 Maize intercropped with pigeon peas

Groundnut

Bean

none

Farm HH model 2 Maize intercropped with pigeon peas

Groundnut

Bean

Onion

Irish Potato

Tomato

Cabbage

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5. Cropping pattern. While rain-fed production at smallholder level in Malawi mainly relies on subsistence food crops in the form of cereals (maize, rice, sorghum and millet), roots and tubers (cassava, sweet potato and Irish potato) and legumes (beans, groundnuts, soybean, pigeon pea, cowpea), the mixed maize farming system is by far the most dominant in the country and cuts across all the agro ecological zones. This justifies selecting maize and groundnut production models as the main baseline crop production activities in rain-fed agriculture at national level. Therefore, the baseline farm models used in the analysis are: predominantly rain-fed maize, groundnut and to a much lesser extend beans and vegetables, including Irish potatoes. In table 2 below the detailed cropping pattern for farm 1 and 2 is provided.

Table 2: Cropping pattern for the farm models

CROPPING PATTERNS (.87 hectare)

Name of Grop % ha % ha

Cropping pattern 0.87 0.87

FARM 1

Rainfed

Maize 76.0% 0.661 55% 0.48

Groundnut 15.0% 0.131 25% 0.22

pigeon pea intercropped/a 0.0% 0.000 20% 0.17

Beans 4.0% 0.035 6% 0.05

Onion/b 0.5% 0.004 2% 0.02

Irish Potato/c 4.0% 0.035 10% 0.09

Tomato/b 0.5% 0.004 2% 0.02

Total 100% 0.87 120% 1.04

FARM 2

Rainfed 67% 0.58

Maize 76.0% 0.66 65% 0.38

Groundnut 15.0% 0.13 25% 0.15

pigeon pea intercropped 0.0% 0.00 20% 0.12

Beans 4.0% 0.03 10% 0.06

Onion 0.5% 0.00

Irish Potato 4.0% 0.03

Tomato 0.5% 0.00

Total 100% 0.87 120% 0.70

Irrigated 33% 0.29

Nett of irrigation infrastructure 0 10% 0.26

Onion 0% 35% 0.09

Irish Potato 0% 40% 0.10

Tomato 0% 15% 0.04

Cabbage 0% 10% 0.03

Total 100% 0.26

Total 0.87 0.96

a\ With intercropping the landuse ratio goes above 100%

b\ for WP rain-fed assumed at 60% of WP irrigated

c\ for WP rain-fed assumed at 50% of WP irrigated

WOP WP

6. Methodology. The analysis of the household models is developed by building financial crop budgets and deriving selected financial performance indicators that will be used to examine the impact of Programme interventions on targeted HH in a Farm model, based on their farming system. The crop models are based on 1 hectare size and the Farm models are based on the national average land size of 0.87 ha per HH. Budgets are built taking into consideration several variables (including revenues, investment and operating costs) in both ‘with’ and ‘without’ Programme scenarios. It is assumed that the ‘without’ scenario coincides with the current situation (i.e. baseline is assumed to be static).

7. Auto-consumption is included in the models to evaluate whether the farming HH produce the full staple consumption themselves. With the number one staple food being maize, the annual maize

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consumption is 1,200kg (300kg per year per adult, 3 adults per HH and 150kg per year per child, 2 children per HH). Traditionally, the average HH does produce just enough post-harvest quantity for own consumption. Cash crops like groundnut are widely grown and are partly used to fulfil the HH consumption as needed. Auto-consumption would be valued at the retail price and thus is not included in the financial budget, because buying maize is equal to selling maize for the family HH budget.

8. Labour. Hired and family labour are both taken into account in the models and labour costs are included in the computation of operating costs. The costs for hiring external labourers are estimated using the average wages for general workers (unskilled farm workers). The wage for Family labour adopted in the financial analysis (340 MK/person-day) corresponds to the minimum wage rate for unskilled agriculture work, corrected using a Shadow Wage Rate Factor (SWRF) of 0.65 factor which takes into account the estimated unemployment rate in the rural areas of the country, which is considerably higher than the low official unemployment rate estimates available (3%). Net income after family labour – the indicator considered to compute activity benefits – includes the cost of family labour, estimated at the hired labour wage corrected with the SWRF. Family labour costs are therefore explicitly taken into account so to make sure that family incomes (net benefits and remuneration of family labour) are sufficient to cover the costs of all incremental labour required in setting up the new activities.

9. Price data. Financial output and input prices are derived from information compiled at national level by NASFAM and FEWSNet Malawi Price bulletin. The prices of inputs as well as all technical parameters used to build the financial models were derived from information obtained during the final design mission (March 2015) with the help of the SAPP commodity and agronomy team and inputs from key stakeholders, like Total Land Care Malawi.

10. Discount rate. This rate should provide the alternative financial returns/opportunity costs to the investor and is estimated at 12%, based on the average long term deposit rates over the past four years, as presented in table 3 below:

Table 3: Deposit interest rate paid by commercial or similar banks in Malawi

Year 2011 2012 2013 2014 Average

Rate (%) 4.1% 11.1% 18.4% 13.2% 11.7%

Source: The World Bank.

11. Farm models. These financial farm models describe the current situation and the traditional practices generally adopted by farmers (the without programme situation, WOP) compared with the with programme (WP) situation.

12. FARM 1 rain-fed.

a. In the WOP situation, most of the HH land is allocated for traditional rain-fed maize and groundnut production. The GOM has primarily supported maize production through their FISP, since the last 10 years. Because of FISP, the use and availability of hybrid seed and fertilizers has brought substantial improvement to all farmers and not only FISP eligible farmers. FISP has brought the average production to a higher level (1,800 kg/ha) than before (1,000kg/ha). The WOP situation is cropped according to traditional techniques (i.e. mono cropping, land clearing, ridging and no use of mulching or cover crops). Yields are much below the potential and the returns to family labour are low. Post-harvest practices result in low production and high losses after harvest.

b. In the WP situation, the Programme will promote the adoption of good agricultural practices in rain-fed fields through the development of extension and demonstration activities. Farmers reached by programme activities will be able to switch from traditional to improved cropping and intercropping, applying post–harvest technologies and improved seeds and inputs. Which, combined would increase production, productivity, net incomes, and overall food security. It was assumed that with the production increase the land allocated for the main traditional crop, maize, will reduce from 76% to 55%. Leaving more land for high value crops. Furthermore, with intercropping the land use ratio increases above 100%.

13. FARM 2 rain-fed and irrigated.

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a. The WOP situation is the same as described under FARM 1a above. PRIDE is developing new irrigation sites and therefore there is no WOP with irrigation available.

b. In the WP situation, farmers will be able to have access to irrigation/ farm water (only from year 2onward) and will diversify their crops on the irrigated plot to higher value crops such as, tomatoes, onions, cabbages, and Irish potatoes. Moreover, with reliable access to farm water, farmers will be able to get two or sometimes even three crops in a year. This model simulates the introduction of irrigated high value vegetables into existing crop farming systems. Irrigated vegetable production is intensive and requires a significant amount of labour and inputs. However, high yield levels and higher market prices make these production activities profitable. The model also considers post-harvest techniques and activities (drying, packing) to reduce the post-harvest losses. A contribution to the WUA of 2,335

21 MK/ha as fee to the Water User Association (WUA) for water is assumed in all the

irrigated models. In addition, the models assume that labour is required to build irrigation structures (during land preparation) and for operation and maintenance of such structures. The rain-fed and irrigated crops will benefit from the adoption of GAP, as in the situation of FARM 1. The IRR is 227% and the NPV 2129467 are considered as high, mainly because: of the high value crops it produces, which is not the case for Farm 1.

14. Crop models. The underlying crop models, all show positive NPV and IRR. The higher production for the rain fed crops is based on: (i) reduction of post-harvest losses; (ii) improvement of agriculture practices by adopting GAP; and (iii) by increasing inputs in terms of better seed and better usage of fertilizer (including compost) and chemicals. Because fertilizer and chemicals are very costly for a HH budget, the increase of these inputs are kept to a minimum, also to reflect the possibility and willingness of a HH to invest in these inputs. The IRR for irrigated crops (onion, Irish potato, tomato and cabbage) are high. These high IRR (especially for onion and cabbage) can be explained, simply because in the WP(irrigation) situation, it is possible to harvest up to three times more than in the non-irrigated situation, resulting in high IRRs. The reliable water supply has also a substantial positive effect on production volume and quality(size) of the produce.

15. Results. The expected financial benefits for targeted HH are illustrated in table 4: Farming Production Budgets Summary, presented below. Indicators selected include net income at full development after labour, IRR and NPV. It is understood that such net incomes may not be achieved in one year; thus a gradual achievement of the expected benefits has been used in the analysis. Results suggest significant potential for creating positive net incomes for targeted households in selected productive activities especially in the combination of rain-fed and irrigated farming. The IRR of FARM 1 is high because of: (i) the impact of intercropping, which brings the land use ration up to 120%; (ii) the post-harvest loss reduction of the underlying crops; and (iii) production increase through increase of farm inputs. The IRR is not available for FARM 2, because it has no negative value in the first year. The NPV is high, mainly because: of the high value crops it produces (predominantly the cash crop Irish potato), which is not the case for Farm 1.Detailed results are included in annex1.

16. Cash flow. The cash flow analysis shows for only for Farm model 1, in the initial year (Y1) of the Programme a negative cash flow. This negative cash flow is mainly attributed to the increase of inputs and the gradual (realistic) increase in production volumes. The Programme has no credit facility component but instead assumes the use of available credit options through existing MFIs. Furthermore, to support the adoption in the initial year, input demonstration packages are made available for the lead farmers to demonstrate the benefits from an increased use of inputs.

21

Source: South Rukuru feasibility study, EFA section, GOPA consultants.

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Table 4: Farming Production Financial Budgets Summary

Crop / Farm budgets

WOP WP 1 Increm. WOP WP 1 Increm.

Farm 1 - - - 75422 226194 200% 301060 49%

Farm 2 - - - 75422 774118 926% 2129467 227%

Maize / Maize intercropped 1440 2708 88% 31623 72522 129% 109995 60%

Groundnut 450 1013 125% 105826 206566 95% 283743 71%

Beans 376 828 30% 18857 74271 294% 66328 24%

Onion 2700 6840 153% 1459186 3547261 143% 5997705 323%

Irish Potato 7000 21600 209% 921390 3543837 285% 6203869 98%

Tomato 800 1800 125% 375843 914130 143% 1260435 88%

Cabbage 0 5060 n/a 92317 503803 446% 1157695 77%

IRRPost-harvest yields Net income (Mk) after labour

NPV (Mk)

Programme Benefits and Beneficiaries

17. Programme Benefits. PRIDE will generate financial and social benefits by promoting investments and activities aimed at introducing good agricultural practices including post-harvest management in rain-fed and irrigated crop production.

18. Financial benefits will be in the form of increased financial returns (net incomes) of the households targeted by the Programme.

19. Social benefits will include a reduction in poverty rates in the areas targeted by the Programme. This will be the effect of the increased financial returns for HHs consequent to Programme intervention and of improved employment opportunities in the agriculture sector. Other social benefits include improved HH nutrition and increased food security through diversification of crop production or increased incomes which could be used to improve diets. Irrigation brings the possibility for farmers to diversify in vegetable crops, having a positive effect on the HH diet composition. A HH expands their cultivated products with at least 4 new crops, resulting in a 20% increase in diet diversification.

20. Direct Programme Beneficiaries. The Programme is expected to benefit approximately 17,500 smallholder farm HH in the Programme areas. Assuming an average household size of 5 people, total beneficiaries would be about 87,500 people. The total number of PRIDE direct beneficiaries expected over the years is reported in table 5.

Table 5: Direct Programme Beneficiaries

21. Indirect Programme Beneficiaries. There will also be indirect beneficiaries, primarily the large population of maize producers who will benefit indirectly from the Programme through improved access to information and improved agriculture technologies. Consumers would also benefit from more, better quality vegetable products, with positive effects in terms of improved nutrition and overall food security.

22. Agriculture service providers would benefit from increased service and input demand (e.g. fertilizers, seeds, marketing services). In addition to this, all those living in the rural areas where supported households will be located will benefit from strengthened local economies resulting from inflows of income and strengthened local demand. There will also be increased job opportunities for unemployed and underemployed women and men living in rural areas. The expansion of rain-fed and

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irrigated crop production will also promote development of other complementary economic activities (e.g. input dealers). Thus, Programme activities will indirectly stimulate the rural economy in the Programme area, benefiting rural population (including the rural poor) through increased demand for goods and services, additional employment opportunities and reduced rural-urban migration.

Economic analysis

Objectives

23. The objectives of this economic analysis are: (i) to examine the viability of the Programme as a whole, in which aggregated economic benefits are compared with total outflow; (ii) to assess the Programme’s impact and the overall economic internal rate of return (EIRR); and (iii) to perform sensitivity analysis in order to measure the robustness of the economic analysis and to measure variations in the overall EIRR due to unforeseen factors.

Assumptions

24. The following assumptions underlie the economic analysis of the Programme:

The analysis is based on a 20 year period during which PRIDE will generate benefits, including the 7-year Programme implementation period.

The costs and revenues estimated in the financial analysis provide the basis for an evaluation to determine the likely economic benefits and costs to the national economy as a whole.

The main benefits of the Programme would accrue to the Malawi economy in terms of the improved farming systems that will sustainably increase food crop yields, diversify crop production, improve soil fertility and structure, and increase overall food security (in terms of increased food availability, access and improved nutrition). Furthermore, reduced post-harvest losses will be realized by promoting the adoption of improved post-harvest management practices.

The analysis assumes an adoption rate of 80% for the Rain-fed only interventions and a 90% adoption rate for the Irrigation interventions.

The phasing of the beneficiaries into the Programme follows the irrigation works phasing.

Economic prices have been computed using a Standard Conversion Factor (SCF) equal to 0.899

22. For some key imported items (fertilizers), economic local market prices have been

derived starting from the international free on board prices at nearest port and considering tariffs and taxes, marketing charges and transportation costs. Details are shown in the annex 1 to the present appendix.

Economic Programme Costs. Financial costs have been converted to economic costs, excluding taxes and duties as well as price contingencies, using the Costab software. There are no further investment costs after PY7, however, the following annual costs were included from Year 10 to 20: (i) recurrent costs in PY8 (with the exception of Programme management recurrent costs); and (ii) 20% of total equipment and material, as it is assumed that these costs will have to be incurred if the future benefits of the PRIDE are to be sustained. In order to avoid double counting of costs in the final aggregation, Programme investment costs are not included in the models.

Programme Economic Internal Rate of Return and Net Present Value

25. The economic analysis of the Programme indicates that PRIDE is robust in economic terms. The overall Economic Internal Rate of Return (EIRR) of the Programme is estimated at 20% (base case) which is above the opportunity cost of capital in Malawi, estimated at 12%. The EIRR is estimated based on the assumption that 80% of target farmers will adopt the GAP technology packages promoted by the Programme and 90% would want to farm on irrigated land.

26. The Net Present Value (NPV) is USD 29 million over the 20-year period of analysis, with the benefit stream-based on the quantifiable benefits that relate directly to the activities undertaken following implementation of the components. These figures are considered as reasonable given the

22

Estimated using: SCF=(M + X)/[(M + Tm)+(X - Tx)], M=total imports, X=total exports, Tm=import tax, Tx=export tax.

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fact that benefits of the Millennium Innovation Challenge Fund are not included but the cost of MICF is. The summary of the economic analysis is presented in annex 2.

27. Sensitivity Analysis. The EIRR was subject to sensitivity analysis in order to measure variations due to unforeseen factors and account for risk. Criteria adopted in the sensitivity analysis are: 10, 20 and 50% cost over-run, 10 and 20% increase in benefits, 10 to 50% benefits decrease and 1 to 2 year implementation delay. The Programme is robust because even with large variations in cost +20% or benefits -20% the EIRR remains above the opportunity cost of capital of 12%. Results are presented in table 6.

Table 6: Sensitivity analysis

Year ERR NPV /a

base scenario 20.0% 29,755

Costs+10% 18.4% 25,460

Costs+20% 17.1% 21,165

Costs+50% 13.7% 8,279

Benefits +10% 21.5% 37,026

Benefits +20% 23.0% 44,297

Benefits -10% 18.3% 22,484

Benefits -20% 16.4% 15,214

Benefits -50% 9.7% -6,599

I year lag in benefit 17.1% 19,965

2 years lag in benefit 14.8% 11,224

a/ Net Present Value (NPV), @12%.

28. The Programme is much more sensitive to benefits decrease and delays than to costs increases (macroeconomic and institutional risk). Improved market linkages and private sector involvement have a better impact on the programme’s economic outcomes, than the tight control of cost overruns.

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ANNEXES

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ANNEX 1: FINANCIAL ANALYSIS

Table 1: Financial & Economic Prices

Financial

Prices

Economic

Prices

Unit Mk Mk

Outputs Crops

Onion Kg 600 539

Beans Kg 350 315

pigeon pea Kg 150 135

groundnut Kg 350 315

Irish potato Kg 240 216

Tomato Kg 760 683

Cabbage Kg 200 180

Maize Kg 80 72

Inputs Seed

Onion kg 80000 71896

Irish potato kg 300 270

Tomato kg 24000 21569

Cabbage kg 24000 21569

Maize (hybrid) kg 950 854

groundnut kg 1000 899

Beans kg 1200 1078

Pigeon pea kg 750 674

Seeds, Fertilizers, Pesticides, etc. 0

Locally produced seed (forage) kg 681 612

Farmyard manure/compost t 2.000 1797

Basal fertilizer (e.g. 23:21:0) Kg 320 507

Top dress fertilizer (e.g. CAN, Urea) Kg 300 513

Herbicides (e.g. Glyphosate, roundup)l 7.000 6291

Insecticides (e.g. Malathion, Dimethoate)kg 2.200 1977

Fungicide (e.g. Dithane M45) kg 3.500 3145

Inoculant packet 400 359

Gypsum kg 60 54

Other Costs

Transportation (10 km) t 619 556

Transportation forage ton/km 62 56

Transportation - other Kg/km 0,40 0

Oxen rental (land preparation) pair day 7.429 6676

Packaging materials 50kg bag 80 72

Labour

Family labour person-day 340 306

Hired labour (land preparation & harvest)person-day 523 470

Drivers person-month 128.894 115838

Labour social insurance % 15 13

Source: Nasfam.org Indicative market price 2015 and FEWS Net Malawi Price bulletin

Description

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Farm Models:

FARM 1: Rain fed only Parameters Unit WOP WP

Maize ha 0.66 0.48

Groundnut ha 0.13 0.22

pigeon pea ha 0.00 0.17

Beans ha 0.03 0.05

Onion ha 0.00 0.02 @ 60%

Irish Potato ha 0.03 0.09 @ 50%

Tomato ha 0.00 0.02 @ 60%

Cabbage ha

Total ha 0.87 1.04

Financial Budget

Unit Without

Project Y1 Y2 Y3 Y4 Y5 Y 6 Y 7 Y 8 Y 9 Y 10

Value of production Mk 169459 214783 239301 290814 369721 420723 471536 471536 471536 471536 471536

Maize Mk 76170 64425 71316 75243 80101 81824 81824 81824 81824 81824 81824

Groundnut Mk 20554 40822 47959 59378 71938 77077 77077 77077 77077 77077 77077

pigeon pea Mk 4437 9396 11876 13350 14877 14877 14877 14877 14877 14877

Beans Mk 4580 8759 10047 10819 14132 15128 15128 15128 15128 15128 15128

Onion Mk 7047 16913 18672 24896 31120 38561 42846 42846 42846 42846 42846

Irish Potato Mk 58464 73080 75168 100224 149083 180403 225504 225504 225504 225504 225504

Tomato Mk 2645 6348 6744 8379 9997 12854 14282 14282 14282 14282 14282

Cabbage Mk

Total production costs Mk 94037 176131 229985 234720 240425 243592 245342 245342 245342 245342 245342

Maize Mk 55261 73804 84170 85746 87208 88033 88033 88033 88033 88033 88033

Groundnut Mk 6743 27400 28334 29830 31475 32148 32148 32148 32148 32148 32148

pigeon pea Mk 26838 30607 31180 31712 32012 32012 32012 32012 32012 32012

Beans Mk 3923 10988 11041 11073 11210 11251 11251 11251 11251 11251 11251

Onion Mk 700 1679 5329 5453 5578 5727 5812 5812 5812 5812 5812

Irish Potato Mk 26400 33000 65857 66772 68556 69700 71347 71347 71347 71347 71347

Tomato Mk 1010 2424 4646 4666 4686 4721 4738 4738 4738 4738 4738

Net Income 75422 38652 9316 56094 129296 177131 226194 226194 226194 226194 226194

Incremental -36770 -66106 -19328 53874 101709 150772 150772 150772 150772 150772

NPV@12% 301060

IRR @ 12% 49%

ItemsWith Project

FARM 2: Rain-fed and irrigated Parameters Unit WOP WP

Maize ha 0.66 0.38

Groundnut ha 0.13 0.15

pigeon pea ha 0.00 0.12

Beans ha 0.03 0.06

Onion ha 0.00 0.09

Irish Potato ha 0.03 0.10

Tomato ha 0.00 0.04

Cabbage ha 0.00 0.03

Total ha 0.87 0.96

Financial Budget

Unit Without


Value of production Mk 169459 186599 510138 654718 857058 1021525 1175024 1175024 1175024 1175024 1175024

Maize Mk 76170 64425 71316 75243 80101 81824 81824 81824 81824 81824 81824

Groundnut Mk 20554 40822 47959 59378 71938 77077 77077 77077 77077 77077 77077

pigeon pea Mk 4437 9396 11876 13350 14877 14877 14877 14877 14877 14877

Beans Mk 4580 8759 10047 10819 14132 15128 15128 15128 15128 15128 15128

Onion Mk 7047 7047 161744 215658 269573 334036 371151 371151 371151 371151 371151

Irish Potato Mk 58464 58464 178599 238132 354222 428638 535798 535798 535798 535798 535798

Tomato Mk 2645 2645 25038 31106 37115 47719 53022 53022 53022 53022 53022

Cabbage Mk 0 6040 12506 16627 22227 26149 26149 26149 26149 26149

Total production costs Mk 94037 167138 374036 381040 390208 396185 400906 400906 400906 400906 400906

Maize Mk 55261 73804 84170 85746 87208 88033 88033 88033 88033 88033 88033

Groundnut Mk 6743 27400 28334 29830 31475 32148 32148 32148 32148 32148 32148

pigeon pea Mk 26838 30607 31180 31712 32012 32012 32012 32012 32012 32012

Beans Mk 3923 10988 11041 11073 11210 11251 11251 11251 11251 11251 11251

Onion Mk 700 700 46159 47238 48317 49607 50350 50350 50350 50350 50350

Irish Potato Mk 26400 26400 156475 158650 162889 165607 169521 169521 169521 169521 169521

Tomato Mk 1010 1010 17249 17323 17397 17527 17591 17591 17591 17591 17591

Cabbage Mk 0 11975 12312 12560 12896 13131 13131 13131 13131 13131

Net Income 75422 19461 136101 273679 466850 625340 774118 774118 774118 774118 774118

Incremental -55961 60679 198257 391428 549918 698696 698696 698696 698696 698696

NPV @12% 2129467

IRR @ 12% 227%

ItemsWith Project

Republic of Malawi




144

Crop models

Maize Malawi PRIDE final design cropbudget: Maize Rainfed & Intercropped

Parameters Unit WOP WP

Plot size ha 1 1

Seeds maize Kg/ha 25 25

Seeds Pigeon pea Kg/ha 0 25

Manure/compost t/ha 0 1

Basal fertilizer (e.g. 23:21:0) Kg/ha 50 100

Top dress fertilizer (e.g. CAN, Urea) Kg/ha 50 100

Herbicides l/ha 0 2

Insecticides (e.g. Malathion, Dimethoate) Kg/ha 0 2

Land preparation pers-day/ha 10 15

Irrigation operation and maintenance pers-day/ha 0 0

Planting/transplanting/nursery pers-day/ha 7 7

Manure and fertilizer application pers-day/ha 3 5

Weeding pers-day/ha 7 4

Spraying pers-day/ha 0 2

Harvesting /stocking pers-day/t 5 8

Transport from field pers-day/t 16 16

Stripping/shelling/cleaning/Packing pers-day/t 8 16

Physical budget

Unit Without

Project Y1 Y2 Y3 Y4 Y5-10 Y 6 Y 7 Y 8 Y 9 Y 10

INFLOWS

production level 110% 115% 120% 125% 125% 125% 125% 125% 125% 125%

Harvest - maize Kg/ha 1800 1980 2070 2160 2250 2250 2250 2250 2250 2250 2250

Harvest - pigeon pea Kg/ha 0 200 400 500 550 600 600 600 600 600 600

Post-harvest loss % 20% 15% 10% 9% 7% 5% 5% 5% 5% 5% 5%

Post-harvest - Maize kg 1440 1683 1863 1966 2093 2138 2138 2138 2138 2138 2138

Post-harvest - Pigeon pea kg 0 170 360 455 512 570 570 570 570 570 570

Autoconsumption Maize kg 1200 1200 1200 1200 1200 1200 1200 1200 1200 1200 1200

OUTFLOWS

Inputs

Seed - Maize kg 25 25 25 25 25 25 25 25 25 25 25

Seed - Pigeon pea kg - 25 25 25 25 25 25 25 25 25 25

Manure/compost ton - 1 1 1 1 1 1 1 1 1 1

Basal fertilizer (e.g. 23:21:0) kg 50 75 100 100 100 100 100 100 100 100 100

Top dress fertilizer (e.g. CAN, Urea) kg 50 75 100 100 100 100 100 100 100 100 100

Herbicides Mk/l - 2 2 2 2 2 2 2 2 2 2

Insecticides (e.g. Malathion, Dimethoate) Mk/kg - 2 2 2 2 2 2 2 2 2 2

Sacks units 29 37 44 48 52 54 54 54 54 54 54

Labour

Land preparation (hired) pers-day 10 15 15 15 15 15 15 15 15 15 15

Harvesting /stocking (hired) pers-day 7 15 18 19 21 22 22 22 22 22 22

Irrigation operation and maintenance pers-day - - - - - - - - - - -

Planting pers-day 7 7 7 7 7 7 7 7 7 7 7

Manure application pers-day 3 5 5 5 5 5 5 5 5 5 5

Weeding pers-day 7 4 4 4 4 4 4 4 4 4 4

Spraying pers-day - 2 2 2 2 2 2 2 2 2 2

Transport from field pers-day 23 30 36 39 42 43 43 43 43 43 43

Shelling/cleaning/Packing pers-day 12 30 36 39 42 43 43 43 43 43 43

Total Hired pers-day 17 30 33 34 36 37 37 37 37 37 37

Total Family pers-day 52 77 89 95 101 105 105 105 105 105 105

Financial Budget

Without


Value of production

Maize 115200 134640 149040 157248 167400 171000 171000 171000 171000 171000 171000

Pigeon Pea 25500 54000 68250 76725 85500 85500 85500 85500 85500 85500

Investments

Inputs

Seed - Maize Mk 23750 23750 23750 23750 23750 23750 23750 23750 23750 23750 23750

Seed - Pigeon pea Mk 0 18750 18750 18750 18750 18750 18750 18750 18750 18750 18750

Manure/compost Mk 0 2000 2000 2000 2000 2000 2000 2000 2000 2000 2000

Basal fertilizer (e.g. 23:21:0) Mk 16000 24000 32000 32000 32000 32000 32000 32000 32000 32000 32000

Top dress fertilizer (e.g. CAN, Urea) Mk 15000 22500 30000 30000 30000 30000 30000 30000 30000 30000 30000

Herbicides Mk 0 14000 14000 14000 14000 14000 14000 14000 14000 14000 14000

Insecticides (e.g. Malathion, Dimethoate) Mk 0 4400 4400 4400 4400 4400 4400 4400 4400 4400 4400

Sacks Mk 2304 2965 3557 3873 4166 4332 4332 4332 4332 4332 4332

Labour

Hired Mk 8996 15598 17146 17973 18740 19173 19173 19173 19173 19173 19173

Family Mk 17528 26277 30302 32451 34446 35572 35572 35572 35572 35572 35572

Sub-total operating costs 83577 154240 175905 179197 182253 183978 183978 183978 183978 183978 183978

Total production costs 83577 154240 175905 179197 182253 183978 183978 183978 183978 183978 183978

Net Income 31623 5900 27135 46301 61872 72522 72522 72522 72522 72522 72522

Incremental -25722 -4487 14678 30249 40900 40900 40900 40900 40900 40900

Items

ItemsWith Project

With Project

Republic of Malawi




145

Groundnut Malawi PRIDE final design cropbudget: Groundnut rainfed


Plot size ha 1 1

Seeds groundnut Kg/ha 70 100 buy seed once in every 3 year, replace 1/3 every year




Herbicides l/ha 2.5 4

Inoculant pack 0 0

Gypsum Kg/ha 0 100



Planting & gap filling pers-day/ha 19 19






Shelling/cleaning/Packing pers-day/t 45 60

Physical budget

Unit Without


INFLOWS


Harvest - Groundnut Kg/ha 750 825 900 975 1050 1125 1125 1125 1125 1125 1125


Post-harvest - Groundnut kg 450 536 630 780 945 1013 1013 1013 1013 1013 1013

Autoconsumption kg 70 70 70 70 70 70 70 70 70 70 70

OUTFLOWS

Inputs

Seed - Groundnut kg 23 33 33 33 33 33 33 33 33 33 33


Basal fertilizer (e.g. 23:21:0) kg - - - - - - - - - - -

Top dress fertilizer (e.g. CAN, Urea) kg - 50 50 50 50 50 50 50 50 50 50

Herbicides Mk/l - 4 4 4 4 4 4 4 4 4 4

Insecticides (e.g. Malathion, Dimethoate) Mk/kg - - - - - - - - - - -

Gypsum kg - 100 100 100 100 100 100 100 100 100 100

Sacks units 9 11 13 16 19 20 20 20 20 20 20

Labour





Manure application pers-day - 8 8 8 8 8 8 8 8 8 8

Weeding pers-day 7 3 3 3 3 3 3 3 3 3 3

Spraying pers-day 2 2 2 2 2 2 2 2 2 2 2





Financial Budget

Without


Value of production 157500 187688 220500 273000 330750 354375 354375 354375 354375 354375 354375

Investments

Inputs

Seed Mk 22167 31667 31667 31667 31667 31666.7 31667 31667 31667 31667 31667




Herbicides Mk 0 28000 28000 28000 28000 28000 28000 28000 28000 28000 28000


Gypsum Mk 0 6000 6000 6000 6000 6000 6000 6000 6000 6000 6000

Sacks Mk 720 858 1008 1248 1512 1620 1620 1620 1620 1620 1620

sub-total inputs

Labour

Hired Mk 9937 16259 17730 20083 22672 23731 23731 23731 23731 23731 23731

Family Mk 18850 26191 28869 33152 37864 39791 39791 39791 39791 39791 39791

sub-total inputs



Net Income 105826 61713 90227 135850 186036 206566 206566 206566 206566 206566 206566

Incremental -44113 -15599 30024 80210 100740 100740 100740 100740 100740 100740

Return on family labour day 1908 801 1062 1393 1670 1765 1765 1765 1765 1765 1765

ItemsWith Project

ItemsWith Project

Republic of Malawi




146

Bean Malawi PRIDE final design cropbudget: BEANS RAINFED


Plot size ha 1 1

Seeds Kg/ha 80 80 buy seed once in every 3 year, replace 1/3 every year




Herbicides l/ha 0.0 4

Pesticides Kg/ha 30 60

Inoculant pack 0 4

Oxen rental (land preparation) pair day/ha 0 0










Physical budget

Unit Without


INFLOWS


Harvest Kg/ha 470 564 611 658 850 900 900 900 900 900 900


Post-harvest kg 376 479 550 592 774 828 828 828 828 828 828


OUTFLOWS

Inputs

Seed - Bean kg 27 27 27 27 27 27 27 27 27 27 27


Basal fertilizer (e.g. 23:21:0) kg - - - - - - - - - - -

Top dress fertilizer (e.g. CAN, Urea) kg - - - - - - - - - - -

Herbicides l - 4 4 4 4 4 4 4 4 4 4

Insecticides (e.g. Malathion, Dimethoate) kg 30 60 60 60 60 60 60 60 60 60 60

Sacks units 8 10 11 12 15 17 17 17 17 17 17

Labour





Manure application pers-day - 2 2 2 2 2 2 2 2 2 2

Weeding pers-day 15 10 10 10 10 10 10 10 10 10 10

Spraying pers-day - - - - - - - - - - -





Financial Budget

Without



Investments

Inputs

Seed Mk 25333 25333 25333 25333 25333 25333 25333 25333 25333 25333 25333




Herbicides Mk 0 28000 28000 28000 28000 28000 28000 28000 28000 28000 28000


Sacks Mk 602 767 880 948 1238 1325 1325 1325 1325 1325 1325

Labour

Hired Mk 11837 12215 12473 12628 13292 13491 13491 13491 13491 13491 13491

Family Mk 8972 10179 10826 11215 12879 13379 13379 13379 13379 13379 13379



Net Income 18857 -42705 -19048 -4854 55983 74271 74271 74271 74271 74271 74271

Incremental -61561 -37904 -23710 37127 55415 55415 55415 55415 55415 55415

Return on family labour day 714 -1426 -598 -147 1478 1887 1887 1887 1887 1887 1887

ItemsWith Project

ItemsWith Project

Republic of Malawi




147

Onion Malawi PRIDE final design cropbudget: Onion rainfed WOP and Onion irrigated WP


Plot size ha 1 1

Seeds kg/ha 4 4




Fungicide Kg/ha 2.0 15

Insecticide Kg/ha 2 10










Irrigation land preparation pers-day/ha 0 60

Unit Without


INFLOWS

production level 45% 60% 75% 90% 100% 100% 100% 100% 100%

Harvest - Onion Kg/ha 3000 3000 3240 4320 5400 6480 7200 7200 7200 7200 7200


Post-harvest - Onion kg 2700 2700 2981 3974 4968 6156 6840 6840 6840 6840 6840


OUTFLOWS

Inputs

Seed kg 4 4 4 4 4 4 4 4 4 4 4

Manure/compost ton - - 2 2 2 2 2 2 2 2 2



Herbicides Mk/l 2 2 15 15 15 15 15 15 15 15 15

Insecticides (e.g. Malathion, Dimethoate) Mk/kg 2 2 10 10 10 10 10 10 10 10 10

Sacks units 54 54 60 79 99 123 137 137 137 137 137

Labour

Land preparation (hired) pers-day - - 60 60 60 60 60 60 60 60 60


Irrigation operation and maintenance pers-day - - 20 20 20 20 20 20 20 20 20


Manure application pers-day - - 10 10 10 10 10 10 10 10 10

Weeding pers-day 80 80 60 60 60 60 60 60 60 60 60

Spraying pers-day - - 25 25 25 25 25 25 25 25 25



Irrigation land preparation pers-day 60



Financial Budget

Without



Investments

Inputs

Seed Mk 3800 3800 3800 3800 3800 3800 3800 3800 3800 3800 3800




Herbicides Mk 14000 14000 105000 105000 105000 105000 105000 105000 105000 105000 105000


Sacks Mk 4320 4320 4769 6359 7949 9850 10944 10944 10944 10944 10944

water fee Mk 2335 2335 2335 2335 2335 2335 2335 2335 2335

Labour

Hired Mk 4236 4236 36057 37616 39175 41039 42112 42112 42112 42112 42112

Family Mk 68058 68058 82438 91220 100002 110503 116548 116548 116548 116548 116548



Net Income 1459186 1459186 1278081 1862310 2446539 3145074 3547261 3547261 3547261 3547261 3547261

Incremental 0 -181105 403124 987353 1685888 2088075 2088075 2088075 2088075 2088075


ItemsWith Project

ItemsWith Project

Republic of Malawi




148

Irish potato Malawi PRIDE final design cropbudget: Irish Potato Rainfed WOP & Irish Potato irrigated WP

Parameters Unit WOP WP /a 4 seed potatoes x 50gr X 10000 square meters

Plot size ha 1 1

Seeds\a Kg/ha 2000 4000 WP has two cycles p/y & seed replacement every 3 years, 1/3 replacement/y




Fungicide Kg/ha 25 10

Insecticide li 5 2








Harvesting /stocking pers-day/t 1.0 2

Transport from field pers-day/t 0 10 WOP collected at field by buyer

cleaning/Packing pers-day/t 8 8


Physical budget

Unit Without


INFLOWS


Harvest - Irish Potato Kg/ha 10000 10000 9600 12000 16800 19200 24000 24000 24000 24000 24000


Post-harvest - Irish Potato kg 7000 7000 7200 9600 14280 17280 21600 21600 21600 21600 21600


OUTFLOWS

Inputs

Seed kg 667 667 1,333 1,333 1,333 1,333 1,333 1,333 1,333 1,333 1,333

Manure/compost ton 1 1 1 1 1 1 1 1 1 1 1



Herbicides Mk/l 5 5 10 10 10 10 10 10 10 10 10

Insecticides (e.g. Malathion, Dimethoate) Mk/kg - - 2 2 2 2 2 2 2 2 2

Sacks units 140 140 144 192 286 346 432 432 432 432 432

Labour






Weeding pers-day 20 20 60 60 60 60 60 60 60 60 60


Transport from field pers-day - - 72 96 143 173 216 216 216 216 216


Irrigation land preparation pers-day 60



Financial Budget

Without



Investments

Inputs

Seed Mk 633333 633333 1266667 1266667 1266667 1266667 1266667 1266667 1266667 1266667 1266667




Herbicides Mk 35000 35000 70000 70000 70000 70000 70000 70000 70000 70000 70000


Sacks Mk 11200 11200 11520 15360 22848 27648 34560 34560 34560 34560 34560

water fee Mk 2335 2335 2335 2335 2335 2335 2335 2335 2335

Labour

Hired Mk 14121 14121 17991 20502 25397 28535 33054 33054 33054 33054 33054

Family Mk 31955 31955 77033 91719 120356 138713 165148 165148 165148 165148 165148



Net Income 921390 921390 214054 769018 1851198 2544902 3543837 3543837 3543837 3543837 3543837

Incremental 0 -707336 -152372 929807 1623512 2622447 2622447 2622447 2622447 2622447


ItemsWith Project

ItemsWith Project

Republic of Malawi




149

Tomato Malawi PRIDE final design cropbudget: TOMATO irrigated


Plot size ha 1 1

Seeds kg/ha 0.5 0.5




Fungicide Kg/ha 10.0 30












Physical budget

Unit Without


INFLOWS


Harvest - Tomato Kg/ha 1,000 1000 1000 1200 1400 1800 2000 2000 2000 2000 2000


Post-harvest - Tomato kg 800 800 850 1056 1260 1620 1800 1800 1800 1800 1800


OUTFLOWS

Inputs

Seed kg 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5




Herbicides Mk/l 10 10 30 30 30 30 30 30 30 30 30

Insecticides (e.g. Malathion, Dimethoate) Mk/kg 6 6 5 5 5 5 5 5 5 5 5

Sacks units 16 16 17 21 25 32 36 36 36 36 36

Labour





Manure application pers-day 1 1 10 10 10 10 10 10 10 10 10

Weeding pers-day 40 40 20 20 20 20 20 20 20 20 20




Irrigation land preparation pers-day 0 60



Financial Budget

Without



Investments

Inputs

Seed Mk 475 475 475 475 475 475 475 475 475 475 475




Herbicides Mk 70000 70000 210000 210000 210000 210000 210000 210000 210000 210000 210000


Sacks Mk 1280 1280 1360 1690 2016 2592 2880 2880 2880 2880 2880

water fee Mk 2335 2335 2335 2335 2335 2335 2335 2335 2335

Labour

Hired Mk 22175 22175 27484 27807 28127 28692 28974 28974 28974 28974 28974

Family Mk 63027 63027 66392 67653 68901 71104 72205 72205 72205 72205 72205



Net Income 375843 375843 200954 355601 508746 779002 914130 914130 914130 914130 914130

Incremental 0 -174889 -20242 132903 403159 538287 538287 538287 538287 538287


ItemsWith Project

ItemsWith Project

Republic of Malawi




150

Cabbage Malawi PRIDE final design cropbudget: GABBAGE irrigated


Plot size ha 0 1

Seeds kg/ha 0 2




Fungicide Kg/ha 0 10













Physical budget

Unit Without


INFLOWS


Harvest - Gabbage Kg/ha 0 1375 2750 3575 4675 5500 5500 5500 5500 5500


Post-harvest - Gabbage kg 0 0 1169 2420 3218 4301 5060 5060 5060 5060 5060


OUTFLOWS

Inputs

Seed kg - - 2 2 2 2 2 2 2 2 2


Basal fertilizer (e.g. 23:21:0) kg - - 650 650 650 650 650 650 650 650 650

Top dress fertilizer (e.g. CAN, Urea) kg - - 200 200 200 200 200 200 200 200 200

Herbicides Mk/l - - 10 10 10 10 10 10 10 10 10

Insecticides (e.g. Malathion, Dimethoate) Mk/kg - - 5 5 5 5 5 5 5 5 5

Sacks units - - 23 48 64 86 101 101 101 101 101

Labour

Land preparation (hired) pers-day - - 70 70 70 70 70 70 70 70 70

Harvesting /stocking (hired) pers-day - - 7 7 10 13 15 15 15 15 15


Planting pers-day - - 30 30 30 30 30 30 30 30 30


Weeding pers-day - - 60 60 60 60 60 60 60 60 60

Spraying pers-day - - 20 20 20 20 20 20 20 20 20

Transport from field pers-day - - 12 24 32 43 51 51 51 51 51

Shelling/cleaning/Packing pers-day - - 19 39 51 69 81 81 81 81 81

Irrigation land preparation pers-day - - 60

Total Hired pers-day - - 77 77 80 83 85 85 85 85 85

Total Family pers-day - - 170 203 224 252 272 272 272 272 272

Financial Budget

Without



Investments

Inputs

Seed Mk 0 0 1900 1900 1900 1900 1900 1900 1900 1900 1900




Herbicides Mk 0 0 70000 70000 70000 70000 70000 70000 70000 70000 70000


Sacks Mk 0 0 1870 3872 5148 6882 8096 8096 8096 8096 8096

water fee Mk 2335 2335 2335 2335 2335 2335 2335 2335 2335

Labour

Hired Mk 0 0 40407 40407 41658 43358 44549 44549 44549 44549 44549

Family Mk 0 0 57923 68983 76032 85608 92317 92317 92317 92317 92317



Net Income 0 0 -229685 7503 157427 361117 503803 503803 503803 503803 503803

Incremental 0 -229685 7503 157427 361117 503803 503803 503803 503803 503803

Return on family labour day -1348 37 704 1434 1855 1855 1855 1855 1855

ItemsWith Project

ItemsWith Project

Republic of Malawi




151

ANNEX 2: ECONOMIC ANALYSIS

Table 1: Project Economic Analysis - Full Project Cost Annex 2 Economic Analysis

Table 1: Project Economic Analysis - Full Project Cost

(constant 2015 values)

(US 000) PY1 PY2 PY3 PY4 PY5 PY6 PY7 PY8-20 PY9 PY10-15 PY11 P12 PY13 PY14 PY15 PY16 PY17 PY18

Total Programme Net Benefits -195 -445 -54 1443 4540 8563 12964 16626 19275 20674 21421 21609 21609 21609 21609 21609 21609 21609

Programme Costs

Investment Costs 4635 11953 13926 9325 6007 4812 1249 0 0 0 0 0 0 0 0 0 0 0

Recurrent Costs 1186 1320 1309 1285 1246 1192 551 551 551 551 551 551 551 551 551 551 551 551

Total Programme Costs 5821 13274 15237 10613 7257 6009 1806 551 551 551 551 556 551 557 551 551 551 556

Total Project Incremental Net Benefits -6016 -13718 -15291 -9169 -2717 2554 11158 16075 18724 20123 20870 21053 21058 21052 21058 21058 21058 21053

IRR 20.0%

NPV @12% (US 000) 29,755 Table 2: Project Economic Analysis at Direct Project Cost Table 2: Project Economic Analysis at Direct Project Cost

(constant 2015 values)

(US 000) PY1 PY2 PY3 PY4 PY5 PY6 PY7 PY8-20 PY9 PY10-15 PY11 P12 PY13 PY14 PY15 PY16 PY17 PY18

Total Programme Net Benefits -195 -445 -54 1443 4540 8563 12964 16626 19275 20674 21421 21609 21609 21609 21609 21609 21609 21609

Programme Costs

Investment Costs 3807 9537 11582 9310 5852 4885 1113 0 0 0 0 0 0 0 0 0 0 0

Recurrent Costs 463 570 557 549 506 464 162 162 162 162 162 162 162 162 162 162 162 162

Total Programme Costs 4270 10108 12141 9862 6362 5354 1281 162 162 162 162 162 162 162 162 162 162 162

Total Project Incremental Net Benefits -4464 -10552 -12195 -8418 -1823 3208 11683 16463 19112 20511 21258 21447 21447 21447 21447 21447 21447 21447

IRR 23.8%

NPV @12% (US 000) 38,555

Republic of Malawi




152

Table 3. Aggregated production benefits Table 3. Aggregated production benefits Mk:USD 440

WOP

Project

WP -Full

DevelopIncremental

Improved Agriculture practices

Rain-fed only Farm 1 51279 165547 114268 1600 415521

Irrigation development

Irrigated & rain-fed Farm 2 51279 637924 586645 15750 20999232

Average 51279 401736 350457 8675

Phasing of beneficiaries

Net Benefits per year Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Y9 Y10 Y11 Y12 Y13 Y14

Incremental NB FARM 1 in Mk -43800 -80641 -38602 27186 70175 114268 114268 114268 114268 114268 114268 114268 114268 114268

Incremental NB FARM 1 in USD -100 -183 -88 62 159 260 260 260 260 260 260 260 260 260

no.beneficiaries 80 320 320 320 160 80 80 0 0 0 0

1 -7964 -14662 -7018 4943 12759 20776 20776 20776 20776 20776 20776 20776 20776 20776

2 -31855 -58648 -28074 19771 51036 83104 83104 83104 83104 83104 83104 83104 83104

3 -31855 -58648 -28074 19771 51036 83104 83104 83104 83104 83104 83104 83104

4 -31855 -58648 -28074 19771 51036 83104 83104 83104 83104 83104 83104

5 -15927 -29324 -14037 9886 25518 41552 41552 41552 41552 41552

6 -7964 -14662 -7018 4943 12759 20776 20776 20776 20776

7 -7964 -14662 -7018 4943 12759 20776 20776 20776

Sub total in USD '000 -8 -47 -98 -114 -70 26 138 226 294 329 345 353 353 353

Incremental NB FARM 2 in Mk -60283 13256 136898 310502 452938 586645 586645 586645 586645 586645 586645 586645 586645 586645

Incremental NB FARM 2 in USD -137 30 311 706 1029 1333 1333 1333 1333 1333 1333 1333 1333 1333

No. Benficiaries 1362 3206 3482 3699 1825 1775 593 0 0 0 0 0 0 0

1 -186659 41047 423889 961437 1402474 1816485 1816485 1816485 1816485 1816485 1816485 1816485 1816485 1816485

2 -439223 96587 997444 2262334 3300127 4274327 4274327 4274327 4274327 4274327 4274327 4274327 4274327

3 -477065 104908 1083380 2457250 3584455 4642589 4642589 4642589 4642589 4642589 4642589 4642589

4 -506829 111453 1150971 2610554 3808085 4932234 4932234 4932234 4932234 4932234 4932234

5 -250013 54979 567761 1287757 1878485 2433015 2433015 2433015 2433015 2433015

6 -243210 53483 552311 1252716 1827369 2366810 2366810 2366810 2366810

7 -81212 17859 184426 418302 610188 790316 790316 790316

Sub total in USD '000 -187 -398 43 1557 4610 8537 12826 16399 18981 20344 21076 21256 21256 21256

TOTAL in USD'000 -195 -445 -54 1443 4540 8563 12964 16626 19275 20674 21421 21609 21609 21609

ModelAggregated

Numbers

Annual Net Benefits-before financing

Economic

Aggregated

Annual Net

benefits,

USD

Republic of Malawi




153

Table 4: number of beneficiaries

Annex 2

Republic of Malawi

PRIDE

Table 4: number of beneficiaries

Items target HH Y 1 Y 2 Y 3 Y 4 Y 5 Y6 Y7 Total


adoption rate 80% 5% 20% 20% 20% 10% 5% 5%

no. of HH 1600 80 320 320 320 160 80 80

cummulative no. of HH 320 640 960 1280 1440 1520 1600


lot 1 in ha 439 1033 725 2197

lot 2 in ha 397 1192 397 1986

lot 3 in ha 191 572 191 954

Total 439 1033 1122 1192 588 572 191

adoption rate 90% 5137

no. of HH/a 15750 1.362 3.206 3.482 3.699 1.825 1.775 593 15.942

cummulative no. of HH 1.362 4.568 8.050 11.750 13.574 15.350 15.942

Total no. of HH 1.442 3.526 3.802 4.019 1.985 1.855 673

Total cummulative no. of HH 17350 1.442 4.968 8.770 12.790 14.774 16.630 17.302

/a Assumed that each household gets 0.3ha irrigated

Project Year

Republic of Malawi



Appendix 11: Draft programme implementation manual

155

Appendix 11: Draft programme implementation manual

Table of Contents23

ABBREVIATIONS AND ACRONYMS Error! Bookmark not defined.

I. INTRODUCTION Error! Bookmark not defined.

A. Purpose of Programme Implementation Manual Error! Bookmark not defined.

B. PRIDE in Summary Error! Bookmark not defined.

C. Readiness for Implementation Error! Bookmark not defined.

II. IMPLEMENTATION AND INSTITUTIONAL ARRANGEMENTSError! Bookmark not defined.

A. Programme Governance Error! Bookmark not defined.

B. Programme Coordination Error! Bookmark not defined.

C. Implementation Arrangements Error! Bookmark not defined.

III. MONITORING & EVALUATION, PLANNING AND KNOWLEDGE MANAGEMENT Error!

Bookmark not defined.

A. Background Error! Bookmark not defined.

B. Results and Impact Management System (RIMS) Error! Bookmark not defined.

C. PRIDE Management Information System Error! Bookmark not defined.

D. Reporting Error! Bookmark not defined.

E. Annual Work Planning and Budgeting Error! Bookmark not defined.

F. Knowledge Management Error! Bookmark not defined.

IV. FINANCIAL MANAGEMENT AND ACCOUNTING Error! Bookmark not defined.

A. General Institutional Set-Up and Governing RegulationsError! Bookmark not defined.

B. Grant and Loan Administration Arrangements Error! Bookmark not defined.

C. Flow of Funds Error! Bookmark not defined.

D. Accounting System Error! Bookmark not defined.

E. Auditing Error! Bookmark not defined.

V. PRIDE PROCUREMENT Error! Bookmark not defined.

A. PRIDE Procurement Ceilings and Legal and Regulatory FrameworkError! Bookmark not defined.

B. PRIDE Procurement Roles and Responsibilities Error! Bookmark not defined.

C. Procurement Methods Error! Bookmark not defined.

D. Procurement Processes Error! Bookmark not defined.

23

Draft PIM included as a separate document.

Republic of Malawi



Appendix 12: Compliance with IFAD policies

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Overview

1. This appendix is based on IFAD’s Strategic Framework for 2011-15 and a range of policy and strategy documents covering targeting, gender, rural finance, private sector, rural enterprise, environment and climate change, knowledge management and SWAPs. The contents of the appendix reflect IFAD’s: (i) assessment of the fundamental causes of rural poverty; (ii) development and strategic objectives and operational outcomes, outputs and inputs; and (iii) principles of engagement. This discussion of PRIDE’s adherence to IFAD’s policies is presented in tabular format and comments are provided on the relevant design features of the Programme.

IFAD’ strategic framework

2. The Strategic Framework goal is that Rural communities are resilient to food insecurity-, climate change- and economic risks. The principles of engagement and how PRIDE is responding is summarised below:

Principles of

Engagement

Programme Response

A differentiated approach based on country context

Working mainly at decentralised level within government systems and with private sector and NGOs with a strong focus on building capacity in smallholder farmers. PRIDE implementation is fully integrated within the existing Government institutional, strategy and policy framework. ASAP funds will be used to mitigate and respond to climate-change induced natural disasters and to build resilience of the beneficiaries.

Targeting Targeting smallholder farmers ensuring equitable participation and receipt of benefits by men, women and youths. Aiming to get 17,000 households sustainably above the poverty line. PRIDE’s targeting mechanism will draw on IRLADP lessons and ensure equitable participation including in allocation of irrigated land and provision of other services such as training.

Supporting the empowerment of poor rural people

PRIDE will provide support farmer to form (i) WUAs; (ii) producer groups with forward and backward linkages to input suppliers, traders, and agribusiness enterprises; and (iii) conservation groups to manage and benefit from protective measures in the catchment. The capacity building and training will develop the skills and confidence of beneficiaries through Farmer Field Schools and Farmer Business Schools.

Promoting gender equality and women’s empowerment

PRIDE will mainstream female and youth involvement in all activities to ensure equitable involvement and opportunity to benefit. The household mentoring approach used by IRLADP for enhanced gender equality and women’s empowerment. PRIDE’s logical framework has included indicators which will help to collect gender, age and wealth class disaggregated data to track who at implementation is actually participating and benefitting according to these categories.

Creating viable opportunities for rural youth

PRIDE will implement the National Youth Policy through activities that modernises agriculture through the incorporation of ICT and other modern technologies and tools to make agriculture attractive to the youth; the promotion, provision and dissemination of youth-tailored information and provision of support for advanced training targeting out of school youth for increased agricultural production, agro-processing and marketing.

Innovation, learning and scaling-up

To achieve greater synergies within Malawi, IFAD will align RLEEP, SAPP and PRIDE into a harmonised country portfolio. SAPP will support the adoption of GAPs by smallholder farmers participating in PRIDE and RLEEP will facilitate value chain analysis and development of market linkages for commodities being grown in response to demand. PRIDE will scale-up by (i) building on the successes achieved by the IRLADP including adopting innovative approaches for promoting equitable land access; and (ii) through partnerships (see below).

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Principles of

Engagement

Programme Response

Effective partnerships and resource mobilisation

Allocating funds to support the MICF funded by DFID and managed by UNDP for linking small holder farmers to the value chain. Various opportunities to engage with (inter-) national knowledge centres on identification and adaptation of Good Agricultural Practices; to be identified and formalised during programme implementation.

Sustainability The economic and financial sustainability of schemes is a key selection criterion for PRIDE. Feasibility studies will need to indicate the economic viability of each scheme prior to being selected for implementation.

To achieve commercial sustainability PRIDE will provide support for farmer groups to form: (i) viable WUAs operating and managing their scheme with no external support; and (ii) producer groups to build forward and backward linkages with input suppliers, traders, and agribusiness enterprises to achieve good prices for their high value crops.

To achieve institutional sustainability PRIDE implementation will be fully integrated within the existing Government institutional, strategy and policy framework. PRIDE’s commercial approach to irrigated agriculture should enable farmers to earn sufficient incomes allowing them to support the operation of schemes and to reinvest surplus in subsequent cropping cycles.

To achieve environmental sustainability PRIDE will share benefits from investments in catchment integrity with conservation groups. These maintain the investments in return for usufruct of the areas protected.

3. The areas of thematic focus of the Strategic Framework and how PRIDE is responding is summarised below:

Areas of

Thematic Focus

Programme Response

Natural resources (land, water, energy and biodiversity)

The PRIDE PDO is sustainably enhanced production by smallholder farmers for household nutritional demands and for income generation from viable markets. The emphasis of PRIDE is on climate-smart resource management systems (repair and prevent land degradation, storage of water, irrigation schemes) and climate-smart good agricultural practices (use of weather information, conservation agriculture, optimised cropping- and irrigation interactions, etc.).

Climate change adaptation and mitigation

ASAP funds through IFAD support climate change adaptation measures and practical land degradation approaches in each scheme cluster area. PRIDE will invest in inputs, such as seed varieties that are tolerant to drought, improved agricultural practices, integrated soil fertility management, watershed management and improved access to climate information to complement the investment in irrigation systems. This will result in better climate risk management, sustaining and often increasing productivity as well as reversing land degradation. ASAP funds are also dedicated to the dissemination of improved cooking stoves, to reduce a/o the pressure on fuelwood sources.

Improved agricultural technologies and effective production services

SAPP – and others – experiences will be used to support identification and adaptation of climate-resilient GAPs by smallholder farmers participating in PRIDE. SAPP will support service providers with knowledge, information, innovations and skills in delivery of climate-smart GAPs to smallholder farmers.

A broad range of inclusive financial services

Rural micro-credit services for smallholders – often group-based – are available though at substantial interest rates. PRIDE provides starter packages for demonstrations of tested GAPS and promotes rotation of the lead farmer role within the FFSs it supports. The pace with which benefits are generated in the farm models reflects the gradual build-up of smallholder capacities to forward surplus from one season into investments in the next.

Integration of poor rural people within value chains

PRIDE will use experience from RLEEP to develop upstream and downstream commercial linkages in value chains. Development of producer groups and commodity platforms – and linkages between the two – are pursued. PRIDE will also partner with the UNDP-managed MICF.

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Areas of

Thematic Focus

Programme Response

Rural enterprise development and non-farm employment opportunities

PRIDE organises Farmer Business Schools and promotes farmers to form (commodity-based) producer groups, which can jointly bulk, grade, transport and sell their produce. Some investments will be made in equipment and facilities for post-harvest management, alongside training on good practices. Viable business models will be developed for improved cooking stoves and for traction services, especially for ripping hard pan layers.

Technical and vocational skills development

WUAs will be trained in construction supervision and operation & maintenance of schemes and some smallholder farmers will work with the construction contractors through which they will develop technical and vocational skills.

Support to rural producers organisations

PRIDE will apply RLEEP experience to support activities in the priority commodities. Commodity platforms will be assisted to address deficiencies in the enabling environment for agribusiness development. Farmer Business Schools and producer groups will be assisted to establish market linkages, including securing contract farming arrangements.

Other elements of IFAD’s policy framework

Policy Programme Response

Targeting policy The Programme design (see appendix 2) provides a detailed analysis of poverty, gender and targeting. The targeting strategy defines mechanisms to ensure that the targeted poor men and women actually participate in and benefit from the planned interventions. These include: (i) geographic targeting measures; (ii) enabling measures; (iii) empowerment and capacity building measures; (iv) self-targeting measures; (v) direct targeting measures; and (vi) procedural measures.

Gender policy

Rural finance policy

Where relevant, PRIDE will promote micro-finance institution(s) and relevant specialised funds to facilitate the adoption of agricultural practices that require access to financial services.

Improving Access to Land and Tenure Security

PRIDE will be implemented in compliance to IFAD’s Policy on Improving Access to Land and Tenure Security, the Voluntary Guidelines on the Responsible Governance of Tenure of Land, Fisheries and Forests and the Framework and Guidelines for Land Policy in Africa. Before supporting any development intervention that might affect the land access and use rights of communities, PRIDE will ensure that their free, prior and informed consent has been solicited through inclusive consultations based on full disclosure of the intent and scope of the activities planned and their implications. Furthermore, irrigation development effectively adds value to land. Under such circumstances, there may be the risk that the rural poor, especially women, may lose out to more powerful groups. PRIDE will be designed, therefore, in such a way that they ‘do no harm’ to the land tenure interests of the rural poor, especially women and other vulnerable groups. Tracer studies will be undertaken to monitor this.

Private sector and rural enterprise policy

PRIDE will facilitate the private sector – through commodity platforms – to improve the integration of smallholder agriculture into the value chains for these commodities; thereby creating benefits to smallholder farmers. RLEEP experience provides a starting point.

Environment and climate change

PRIDE is expected to result in positive environmental outcomes (see ESRN below) associated with works against land degradation, the capture of surface water and the introduction of GAPs, including conservation agriculture.

The Programme will also contribute to climate change adaptation by introducing irrigated agriculture and by promoting GAPs which both help enhance resilience to climate extremes, especially droughts; and which promote carbon sequestration in soil organic matter.

Knowledge management

PRIDE will identify and document lessons learned and share this process with the smallholder agriculture sector. To do so, PRIDE employs an interactive approach, which promotes learning at community, regional and national levels.

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SWAp policy PRIDE is consistent with IFAD’s policy of engaging with SWAps where Governments are developing such sector-wide programmes. IFAD aims to add value to SWAps to make them more effective in rural policy reduction; and to participate in pooled funding arrangement where fiduciary and M&E systems are sufficiently well developed. If this is not the case IFAD will provide support the SWAps via programme funding using its own systems and procedures, while at the same time supporting the development of Government fiduciary arrangements.

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Appendix 13: Contents of the Programme Life File

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PRIOR DOCUMENTS

COSOP

COSOP Mid-Term Review

Programme Design Report – First Draft

WORKING PAPERS (as prepared by the 1st final design mission)

1. Water Users Associations 2. Land and Water Governance 3. Poverty Targeting and Gender 4. Climate Change Adaptation 5. M&E, Knowledge Management and Communications 6. Environment and Social Impact Assessment 7. Private Sector Engagement 8. Environmental and Social Review Note November 2014 Update 9. Irrigation

Draft Programme Implementation Manual (TOC in PDR appendix 11)

ENVIRONMENTAL AND SOCIAL SAFEGUARDS

SECAP Review Note

Environmental and Social Management Framework

Resettlement Action Framework REFERENCE DOCUMENTS

Malawi Growth and Development Strategy II

Malawi Country Strategic Opportunity Programme (COSOP) 2010-2015

Government Of Malawi Economic Recovery Plan 2012

the G8 New Alliance for Food Security and Nutrition in Malawi (in the Comprehensive Africa Agriculture Development Programme (CAADP) Framework

Agricultural Sector Wide Approach (ASWAp) MOAFS 2010

Pre-Design Framework Report, list of reports for reference and the logical framework table.

National Adaptation Plan of Action GOM 2006

Capacity Needs Assessment for Climate Change Management Structures GOM June 2011

Sector Policies Response to Climate Change in Malawi GOM September 2011

National Climate Change Investment Plan 2012 Environmental Affairs Dept Ministry of Environment and Climate Change Management

Current Hazard Mapping Capacities and Effectiveness of Scenario-based Tools for Long Term Planning Mechanisms GOM June 2012

USAIDs Climate Vulnerability Analyses for Malawi September 2013

COSOP 2009

MTR of COSOP

IRLADP Detailed design documents of all of their schemes

IRLADP Project Appraisal Document 2005

IRLADP Impact Assessment Study and other documents July 2013

IRLADP Documenting Lessons Learnt Final Report October 2014

IRLADP WUA Formation Guidelines, constitution, activity guidelines, irrigation scheme management guidelines regulation, WUA regulations, WUA training modules

IRLADP, Independent Endline Survey And Impact Evaluation, Draft, World Bank, 2015

Smallholder Flood Plains Development Programme Water Resources Assessment Study 2000

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MOWDI 2011 and 2012 Sector Performance Report prepared for the Annual joint sector review 2012 and December 2013

Climate Adaptation for Rural Livelihood and Agriculture (CARLA) AFDB Appraisal Report October 2011

Global Agricultural and Food Security Programme Support to ASWAp MOWDI March 2012

Climate Risk and Vulnerability A Handbook for Southern Africa 2011

Development of Irrigation Master plan and Investment Framework SMEC November 2013

Irrigation Schemes Appraisal Methodology SMEC July 2014

Report of the Law Commission on Review of Land Related Laws GOM 2013

RIDP II GOPA/Aurecon Detailed Design Report for South Rukuru Irrigation Scheme August 2014

RIDP II GOPA/Aurecon Detailed Design Report for Bwanje Dam Project July 2014.

GOM Irrigation Master Plan and Investment Framework

MOAIWD, Malawi National Guidelines: Integrated Catchment Management and Rural Infrastructure, Volumes 1 and 2, Draft, 2015

Government of the Republic of Malawi, Ministry of Irrigation and Water Development, Second National Water Development Project (NWDP II), Water Resources Investment Strategy, Component 1 – Water Resources Assessment; draft report, 2015

Yaron, G. et al, Economic Valuation of Sustainable Natural Resource Use in Malawi, January 2011

MISSION DOCUMENTS

Terms of Reference for Pre-Design Mission

Terms of Reference for Design Mission

Aide Memoire of Pre-Design Mission

Aide Memoire of Design Mission (January 2014)

Aide Memoire of Design Mission (July 2014)

Aide Memoire of Final Design Mission (November 2014)

Aide Memoire of the second Final Design Mission (April 2015)

IFAD REVIEW DOCUMENTS

CPMT Minutes

QE Minutes

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Appendix 14: Climate change adaptation and climate-smart agriculture

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Current Climate

1. Current Climate. Malawi’s climate is predominantly influenced by Lake Malawi, the largest

national water body and the accentuated topography resulting in classifications from semi-arid (Shire

Valley and parts along the Lakeshore Plain) to sub-humid (high altitude plateaus and hilly areas).

Based on its geographical position, Malawi has a sub-tropical climate with two distinct seasons; a long

rainy season (usually from November to April), and a dry season (May to October). Malawi also

straddles equatorial east Africa and subtropical southern Africa, which are dominant modes of climate

variability. This potentially results in separate climate drivers influencing the northern and southern

parts of the country (Behera et al., 2005; Pohl et al., 2007). The rainfall patterns are influenced by the

Inter- Tropical Convergence Zone and the Congo Air Mass. Other factors influencing the climate of

Malawi include anti-cyclones, easterly waves, occasional tropical cyclones as well as orographic and

topographic effects.

2. Malawi Meteorological Services records depict mean annual temperatures ranging from below

12°C (minimum) in the plateaus and hills to above 32°C in the lowlands (maximum) and mean annual

rainfall ranging from 725mm in some low-lying areas, to above 2,500mm in high altitude areas. The

humidity ranges from 50% in the dry months to 87% in the wet months. Overall total rainfall in Malawi

reveals a high degree of inter- and intra-seasonal variability. Standardised rainfall anomalies for the

November to April period demonstrate very high inter-annual variability albeit the anomaly signal in

some years varies from one station to another (USAID Vulnerability Assessment, 2013).

3. The inter and intra-seasonal variability in rainfall as well as declining soil fertility is already

impacting the agriculture sector in Malawi. Smallholders farmers will be most affected by the

increasing variability in the rainfall and other climatic changes projected for Malawi. The excessive

rains in early 2015, and the subsequent flooding in southern Malawi, followed by a long dry spell at

towards the end of the rainy seasons, has provided a preview of what this increased variability could

look like.

Climate trends and projections

4. The UNDP Country Climate Change Profile for Malawi showed an increase in the number of

hot days and nights by 8.3% and 11.1% respectively on an annual basis between 1960 and 2003

(McSweeney et al., 2008). The summer months (DJF) have an even more marked increase of 12.7%

and 17.6% respectively. The number of cold days and nights also showed an annual decrease over

the same period, by 4.3% to 7.2%. Another earlier study concluded that the occurrence of extreme

weather events has become more frequent over the last two previous decades (Munthali and

Mwatalirwa, 2007). The study found that maximum and in particular minimum temperatures show an

increasing trend over the last 40 years which is concurrent with figure 1 below. However, no

consistent patterns in rainfall were found, with large variations between seasons and sites.

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Source: UNDP Climate Change Country Profiles

5. Apart from the slow onset events of temperature and rainfall variations. Malawi also

experiences climatic shock events. The table below provides details of natural disaster occurrence in

Malawi since 1900, with droughts being more prevalent and affecting larger numbers of the

population. The 2015 floods – not included in the below table – displaced an estimated 200,000

people and killed 176.

Top 10 Natural Disasters in Malawi (1900 – 2013) sorted by number of people affected24

Disaster Date No Total Affected

Drought Apr-1992 7,000,000

Drought Oct-2005 5,100,000

Drought Feb-2002 2,829,435

Drought Feb-1990 2,800,000

Drought Aug-2012 1,900,000

Drought 1987 1,429,267

Drought Oct-2007 520,000

Flood Jan-2001 500,000

Flood 18-Feb-1997 400,000

Flood 28-Dec-2002 246,340

6. Temperature: Most model simulations predict increases in temperature with the mean growing-

season temperatures increasing up to 2.70C by 2075. Using two different emission scenarios, for the

two decades up to 2040, monthly maximum mean temperatures show the lowest increases likely to

occur during the months of January and February, with changes of between of 0.6°C to 1.5°C (Malawi

Climate Change Vulnerability Assessment USAID, 2013). The highest increases were in October and

November over ranges of between 0.8°C and 2°C. For the subsequent two decades, i.e. up to 2060,

the months of October and November were projected to be warmer, with an increase of between

1.75°C to 2.5°C. Apart from the increasing temperatures, more days of extreme temperatures are

projected with longer duration of heat spells during these periods. A vulnerability and adaptability

assessment conducted in 2001, using four General Circulation Models (GCM), predicted that

temperatures in southern and central Malawi will increase by 1o, 2o and 4o C by the years 2020,

2075 and 2100, respectively (Phiri et al. 2005). A separate study that drew on 15 models to analyse

three SRES emission scenarios (Nakicenovic et al., 2000) A1B, A2 and B1 revealed that by the 2060s

24 Created on: Oct-15-2013. No update available in April 2015. Data version: v12.07 www.emdat.be

http://www.emdat.be/

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the mean annual temperature in Malawi would increase by 1.10 to 3.30 C and by the 2090’s by 1.50

to 5.00C.

7. Precipitation: Regional Climate Models, show a decrease in early season rainfall (October to

December) and an increase in late season (January to March) rainfall over the eastern parts of

southern Africa, which includes Malawi (Tadross et al. 2005). In terms of national projections based on

the functional weather stations, for 2020-2040 a general likelihood of later seasonal onset is affirmed.

Malawi may also experience more intense rainfall during the months of December through February,

followed by an early cessation based on the high emission scenario. These projections in rainfall

changes also hold for 2040-2060 when compared to the historical climate trends analysis. The GCM

study also predicted that rainfall will increase by between 2% and 8% in the southern and central

regions between 2020 and 2100 (Phiri et al. 2005). However, given the current inter-annual variations,

changes in mean annual rainfall may be less visible.

8. The rainfall projections by the 2060s show great variability (-13% to +32%), however the trend

appears to be to drier dry seasons (June to November) and wetter rain seasons (December to May).

The wet season estimates varied between -8% to +25% for December to February and -17% to +99%

for March to May. An increase of up to 19% in the proportion of heavy rainfall events mainly occurring

in the wet season, December to May was consistently predicted under the higher emissions

conditions the models. The potential changes in the effects of El Nino events, proved more difficult

with models being inconsistent in their predictions. This lack of agreement contributes to the

uncertainly in the climate change predictions. The uncertainty is also echoed in the Country Climate

Profile, which concluded that annual rainfall was strongly variable in Malawi and no statistical trends

were found over 1960-2006, nor were any found in the extreme indices using daily observations.

9. Malawi’s Second National Communication to the UNFCCC (2009), which used historic

temperature and rainfall data with five models to predict future climate, indicates a decreasing trend

for monthly rainfall over time. The highest percentage decrease is predicted for the year 2020 based

on sampled stations. The climate projections for the period 2010-2075 indicate that mean cumulative

annual rainfall may decrease by 0.7% to 4.8% compared to the 30-year mean. These observations

reiterate the findings of the Vulnerability and Adaptation Assessments (2003) indicating that Malawi

will continue to experience climatic hazards, such as intense rainfall, floods, seasonal droughts, multi-

year droughts, dry spells, cold spells, strong winds, thunderstorms, landslides, hailstorms, mudslides

and heat waves. PRIDE will focus on addressing issues of drought through irrigation and agriculture

practices as well as erosion risk areas through the catchment protection. The figures below illustrate

the high risk areas for erosion and droughts incidence.

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Figure 2: Erosion risks and drought occurrence in Malawi

Policy and institutional framework for addressing climate change

10. Based on the above projections, Malawi developed a response to addressing climate change

firstly through the National Adaptation Plan of Action (NAPA), in 2006, as in line with the UNFCCC

processes. The NAPA was to address the immediate adaptation needs and included identification of

priority sectors and projects. Several sectors including agriculture, water, energy, fisheries, forestry

and product use, were identified for priority adaptation interventions. The most vulnerable districts

based on the assessment conducted for developing the NAPA were Karonga, Salima, Dedza,

Chikwawa, Nsanje and Zomba. As a result of the assessment five urgent and immediate priority

actions were recommended including two that focused on agriculture and rural development:

(i).improving community resilience to climate change through the development of sustainable rural

livelihoods; and (ii) improving agricultural productivity under changing climatic conditions marked by

erratic rains.

11. The NAPA is now being converted into a National Adaptation Plan with a more long term

perspective and aligned with the national development agenda. GOM has developed a National

Climate Change Investment Plan to be driven by the MONREM.

12. The climate change agenda in Malawi is overseen by the MDPC, which leads the

implementation of the National Climate Change program and ensures the mainstreaming of climate

change in sector programs and government policies. The MDPC chairs the National Climate Change

Steering Committee. The MONREM is the line Ministry with most of the technical and data collection

responsibility. The Department for Climate Change and Meteorological Services provides data on

climate change, while the Department of Environmental Affairs led the preparation of the NAPA. The

institutional set-up provides a structured approach to managing the risks of climate change and

coordinates the activities as well as provides some of the relevant capacity for the oversight functions.

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Climate change Impacts on food crops

13. Malawi is exposed to climate risks including flooding, shorter rains, dry spells, late rains,

drought, strong winds hail storms and increasing temperatures. These risks have been increasing and

the trend is expected to continue despite the uncertainty in climate projections. The impacts of current

climate variability and change include crops drying before maturity, crop damage due to floods, soil

degradation (soil erosion, loss of soil fertility, siltation of fields), shortage of water, loss of land,

reduction in yield, and consequently food insecurity.

14. The impacts of increasing climate variability and change have already triggered agricultural

officers to promote irrigation, fish farming, hybrid and drought-tolerant crops as measures to improve

yields. However, practices such as irrigation also lead to the expansion of cultivation into areas that

are more environmentally sensitive and essential for ecosystem services such as the river banks and

dambos. In cognisance of the investment costs for irrigation infrastructure and the potential reach,

more attention should be placed on developing and disseminating technologies that can stabilise rain-

fed production systems. In addition afforestation, bank reinforcement and the use of vetiver grass to

stabilise ecosystems near water channels are also being promoted. On the policy level the Farm Input

Subsidy Program which focuses on maize, the staple crop, has contributed to the expansion of the

cereal, which is less climate-resilient than other traditional crops such as sorghum and pigeon peas.

15. The predicted increase in temperature will impact on maize yields, which decrease with higher

temperatures (Lobell et al., 2008 and 2010; C. Ringler, 2010). The sensitivity to heat of the maize crop

is exacerbated by drought conditions due to the absence of sufficient levels of moisture in the soil

(Lobell et al., 2011). The reduced moisture-holding capacity of the soil is also increasingly aggravated

by excessive rainfall runoff and low levels of soil organic matter. Between 1985 and 2005, maize

yields in Malawi averaged approximately 1.3 tons per ha. In comparison the 2004/2005 drought had a

devastating effect on maize yields, and the national average yield fell 40% below the long term

average, to 0.76 tons/ha. Erratic rainfall and dry spells also have a significant impact on maize, which

is particularly sensitive and has reduced yields when rainfall is outside of the range of 90 to 120% of

the norm (Benson and Clay, 2004). During the 2011/12 season MOAFS recorded a 7% and 6% drop

in the national production of maize and rice respectively, mainly due to dry spells, which resulted in

unavailability of water for the crop growth. During excessive rainfall limited solar radiation can be a

limiting factor. Predictability of climate requires more attention to be paid to intra-seasonal rainfall and

the collection of more localised climatic data.

16. To address the challenges of increased rainfall variability improved varieties, which are early

maturing and can yield successfully even when the season is shorter, have been developed.

However, they also have some disadvantages such as requiring the application of fertiliser, which is

not always the case for traditional varieties and increased susceptibility to prolonged dry spells that

commonly occur in January and February coinciding with the crucial growth stages. Good soil fertility

management is important for all varieties. Improved varieties are also more susceptible to pest

damage in storage, as the grains are less dense and easier to “bore.” Traditional varieties cope better

with more prolonged moisture shortage, though they too suffer yield losses if the period is very

prolonged (Lobell et al., 2011).

17. The adoption of improved varieties shows the willingness of farmers to adapt albeit some revert

back to traditional varieties. This willingness of individual farmers can be built on in cognisance of the

fact that poorer ones have less assets and resources to enable them manage the uncertainty of

climate change and its impacts. Some crops can cope with the late onset of rains and have

insignificant changes in yields, while others can be greatly reduced. Therefore in order to manage the

effects of a changing climate farmers will need a range of options including a variety of crops to

cultivate and the information and knowledge to adjust their agricultural practices. As has been tried

and tested, agricultural diversification and intensification with activities such as agroforestry,

permaculture, water harvesting, conservation agriculture and soil fertility management, will be

important in enhancing the resilience and reduce the impact of the climate events as well as the time

required to recover between these events.

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18. The major coping strategies for food insecurity resulting from climate-related risks presently

employed by the smallholders households include food purchases, enrolment as casual labour, food

rationing and sale of livestock; though most of the coping mechanisms have not been effective

(Climate change Adaptation for Rural Livelihoods and Agriculture Project survey, 2009). Some of

these mechanisms actually result in other problems such as malnutrition and spread of diseases,

which exacerbates the vulnerability of the communities.

Climate change impacts on the natural resource base

19. The agriculture sector in Malawi creates the largest demand for the abundant surface water

resources. Approximately 71% of the water resources are used on arable agriculture, while 19% is

used for domestic purposes. Important surface water sources include the Shire River, which is fed by

outflows from Lake Malawi, and Lake Chilwa which is surrounded by wetlands and is considered a

very fragile hydrologic system, especially vulnerable to the impacts of climate change (Malawi Climate

Change Vulnerability Assessment USAID, 2013). The Shire River also provides the majority of

irrigation water for the southern part of the country.

20. Though Malawi has abundant surface water resources to be defined as a water scarce country

(availability of less than 1,700m3 per capita per year), localised water scarcity still exists as well as

second order water scarcity that results from not adequately managing access to the water resources.

Malawi is however considered water-stressed based on renewable water resources being less than

1,400m3 per capita per year. The impacts of climate change on water availability in Malawi are

already evident in the erratic rains, extended dry periods, and increased evaporation due to higher

temperatures. Surface water is more abundant and accessible than groundwater resources in all sub-

basins of Malawi. However, surface water bodies exhibit a high sensitivity to changes in climate.

During recent extreme drought conditions, most sub-basins in the country retained little surface water.

There is, therefore, scope to enhance the quantity of water that is retained, e.g. by man-made

reservoirs, at the end of the rainy season. The total annual average water demand in Malawi is

estimated at approximately 2,900 Ml/day (2010), increasing to 3,900 Ml/d during the normal dry

season. During an extreme drought event dry season, demand increases to 55% (i.e., resources are

more constrained but still generally in surplus at a national scale) (Malawi Climate Change

Vulnerability Assessment USAID, 2013).

21. Water availability projections based on climate modelling show that within a 20 years' time

frame, annual surface water resource availability will increase by approximately 4%, while the

availability of dry season water resources will decrease by about 10%. An actual shortfall of 2,350

million litres per day is predicted for the Lower Shire (Water Resources Investment Strategy, GOM,

2011). Much will depend on efforts to use water more effectively to counter the effects of climate

change. Such efforts should include demand management (irrigation efficiency, drought-resistant early

maturing varieties, improved agricultural practices) and supply management (enhanced storage

capacity, catchment management). Both small- and large-scale irrigation expansion is planned in

Malawi. The water use efficiency will be trialled by farmers in PRIDE through adaptive research and

demonstration trials on irrigation agronomy. The design of irrigation schemes will incorporate

measures for climate-resilience, such as enhancing water storage capacity (drought) and flood

protection measures for irrigated fields (in case of extreme rains).

22. As mentioned in the sections above on climate change impacts on food crops, climate change

will also impact on the land resources. The impacts are related to soil moisture content and quality as

a result of events such as droughts and floods. The climatic events exacerbate the human induced

reduction in soil fertility and vegetation cover. Land degradation as a consequence of a combination of

factors including deforestation, increased rainfall runoff, and accelerated sheet erosion negatively

impacts the productivity of smallholders in Malawi. Soil loss was recently estimated to average 20

tons/ha/year, which contributes to a reduction in crop yields of more than four per cent per year (Yaron

et al., 2011). Smallholders are also accustomed to continuous cropping while giving little attention to

soil and water conservation measures. The sustainability and functionality of the irrigation schemes

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developed or rehabilitated under PRIDE will in part depend on sustainable land management

practices in the wider landscape where rain-fed agriculture will continue to be practiced.

23. The fragile and degrading resource base limits the options for actual climate change adaptation

and often results in unsustainable exploitation of natural resources such as forests. The clearing of

forests contributes to flood events during more intense rains.

Current climate change adaptation

24. At the household level, strategies relating to crop production and reducing the risk associated

with climate events include crop diversification, adjusting timing of agricultural activities such as

planting, changes in tillage practices, irrigation, efficient water use, food rationing, casual labour and

fishing. Other strategies include shifting homes to higher ground, increasing storage of grain in local

granaries, hunting, gathering and eating wild fruits and vegetables and sinking boreholes. Irrigation

farming is one of the most common ways of adapting to climatic hazards such as rainfall variability. At

the national level Government also increases expenditure on imports to meet food deficits as a

temporary measure.

25. Other strategies to manage the risks of climatic events include the move to drought resistant or

hybrid varieties that are favoured for their shorter growing seasons. However, several challenges are

also associated with adoption of these varieties such as the annual purchase required for the hybrid

seeds and the inaccessibility to the poorest households. Some varieties have lower yields and may

lead to expansion of agriculture into more marginal areas without improving the agronomic practices.

In addition, the increase in hybrid yields is often met with an increase in post-harvest losses due to

lack of markets and limited access to them. Therefore farmers often opt to return to traditional

varieties. The post-harvest losses are also a consequence of a reported prevalence of pests that

result in premature harvesting, shorter storage, and a general move away from household and

community granaries.

26. Due to increased rainfall variability, farmers are sometimes forced to delay planting and to

frequently replant their crops. Farmers are also observed to shift from maize to more drought-tolerant

food crops, such as cassava; and to relocate cultivation to stream banks. Conservation agriculture

can make present farming systems more resilient. Conservation agriculture practices proved effective

for soil moisture conservation and increased crop yields, particularly during periods with increased

rainfall variability and on soils with lower clay content (Total Land Care, 2012). Practices include

reduced and no-till planting techniques, both crop diversification and intercropping, and irrigated

vegetable gardens

27. Other practices adopted by smallholders to address declining soil fertility include increased use

of available animal manures and composts, and regeneration of trees such as the nitrogen-fixing

agro-forestry species in their cultivated fields in order to help replenish soil organic matter. Trees have

the additional benefit of providing fuel wood, fodder, and other non-timber forest products as well as

reducing rainfall runoff, increasing infiltration and thus securing local water supplies. Fodder from

trees can be used to replace crop residues that are in increasing demand for use as livestock fodder

and can alternatively be left in the fields for improved soil moisture retention.

28. Several instruments for managing climate-related risks have been trialled in Malawi. One option

is weather-indexed insurance, which is mainly used on the tobacco farmers. This was previously

piloted on a variety of crops grown by smallholders. One of the inherent flaws was the aggregation of

conditions over the whole of the country as part of the pay-out trigger, which by default ignored the

regional weather patterns and specificities. The Opportunities Bank of Malawi reports the system is

currently under revision with new investors from the private sector entering the market. However this

instrument could not be included as a potential means of managing climate risks in PRIDE as the

environment is still not conducive for smallholders and the premium prices are unaffordable.

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Climate change adaptation measures for PRIDE 29. PRIDE’s goal of strengthening the resilience of rural communities to economic, climate change

and other shocks, implies a focus on measures that can be implemented and managed at the level of

communities. The climate change adaptation measures included in PRIDE apply the same focus on

measures to be developed for communities and, hence, derive from two categories: community-level

natural resource management and climate-smart agricultural practices.

PRIDE natural resource management

30. Improved management of natural resources, particularly at the level of entire communities

would reduce the vulnerability of smallholders to climate change. PRIDE includes two community-

level interventions in natural resource management: (i) the development of irrigation infrastructure

(funded by IFAD); and (ii) physical measures aimed at restoring eroded lands and reducing

vulnerability of erosion-prone lands (proposed to be funded by ASAP).

31. Irrigation investments capture water resources for agriculture, through both run-of-the-river

irrigation schemes, and through small- to medium-sized impoundments. With increasingly erratic

rainfall patterns as a result of climate change, and utilisation of dry season river flows reaching its

maximum, water storage has become a necessity for further agricultural development in Malawi.

Water storage will have a positive effect on the regulation of water flows and as such, combined with

improved catchment management, reduce the chance of river floods.

32. Construction of dams and development of irrigated commands has impacts on the natural

environment and on communities in many different ways, and each scheme would need a thorough

review from environmental and social point of view. Environmental and social management plans, and

if need be, resettlement action plans need to be defined and implemented to safeguard that outcomes

of the intervention are positive and contribute to enhanced resilience.

33. Erosion prevention and rehabilitation measures help safeguard and/or restore the natural

resource base of entire communities. The investments for erosion control and prevention included in

PRIDE follow national strategies for catchment management, but are applied to smaller areas so that

– with the limited resources – still a notable local impact can be created. The investments in the

scheme cluster areas will provide a model for comprehensive catchment management, and could be

scaled-up through mobilisation of additional resources.

34. The erosion-related measures included under PRIDE address locations within the scheme

cluster areas that are at-risk. This could be slopes where the soil cover is wearing out; locations

where mass-movement is taking place (e.g. gullies); and river banks that are under threat.

Geographic information on such localities, combined with the views and insights of communities helps

prioritise locations where intervention is needed. Formation of conservation groups – comprising

smallholders working on or near the at-risk location – will be formed to manage the location after

improvement, on the proviso that the group is allowed to derive benefits from doing so.

35. The catchment management activities under PRIDE will include natural forest regeneration,

community woodlots and nurseries to reverse the rates of deforestation and contribute to reducing soil

erosion. PRIDE will also include restoration of soil cover on vulnerable slopes, using fodder that can

be used in a cut & carry practice. More heavy investment will take place on active erosion sites, and

may include contour bunds and gully plugging.

PRIDE climate smart agriculture (CSA)

36. The climate variability described in earlier sections necessitates the adaptation of agricultural

practices and systems to ensure sustained and possibly increased productivity. Adaptation can be

done at different levels ranging from production systems, via crop varieties, to crop animal husbandry

methods.

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37. FAO’s Economics and Policy Innovations for Climate-Smart Agriculture (EPIC) programme25

has worked in the past three years in Malawi to identify the most suitable context- and climate-specific

CSA practices from a combination of policy work, stakeholders’ consultation and qualitative and

quantitative analysis. Specifically, the Programme has tried to fill key gaps in knowledge on the trade-

offs and synergies between productivity, smallholder income growth, adaptation to climate change and

resilience in production systems and reduced emissions of greenhouse gasses that are generated by

various transformation pathways for smallholder agriculture and the impacts of policies and potential

investments in the country. In addition, it has helped in creating a base of evidence to undertake

informed decision and has identified institutional arrangements that can support possible synergies,

and achieve coherence across the food security, agricultural development and climate change

adaptation and mitigation policy processes.

38. FAO- EPIC has established a consolidated evidence base for CSA in Malawi, including:

(i) analysis of climate change impacts at sub-national level and their implications for the productivity,

income and resilience impacts likely to ensue from adopting specific practices; (ii) a range of

sustainable land management options such as intercropping, legume rotations, conservation

agriculture and agro-forestry; and (iii) consideration of crop and income diversification. FAO-EPIC has

established policy linkages in Malawi, including the CSA project core teams and national coordinator.

The FAO-EPIC team works with Malawian partners and the CSA and CA project core teams, to

provide information and analysis to support the development of NAPA and facilitate policy dialogue to

include CSA options under national policies and implementation strategies.

39. The main focus of CSA activities to be incorporated – based a/o on the lessons of EPIC – will

be on adaptation and dissemination of climate-smart agriculture options that have a proven likelihood

of effectively enhancing farming system resilience to climate variability. The following (categories of)

practices have been identified:

Making better use off location-specified climate and weather information services;

Improving access to improved seed varieties – drought-tolerant, early-maturing, pest resistant,

high-value crops particularly for irrigation;

Optimising planting dates and irrigation schedules, aiming for the highest production (area and

yield) with the wisest use of soil residual moisture and irrigation deliveries;

Introducing improved cooking stoves to reduce pressures on renewable energy sources;

Promote conservation agriculture, with its emphasis on minimum soil disturbance, enhanced

integration of crop residues and mixed cropping including use of fertility trees, crop

diversification and rotation; including leguminous plants;

Introduction of integrated pest management practices, thereby reducing vulnerabilities of the

more intensive cultivation in irrigated commands;

Improve drying and storage facilities to reduce post-harvest losses.

40. The strategy to disseminate the above climate-smart Good Agricultural Practices comprises a

combination of (i) inventory of existing climate-smart good agricultural practices; (ii) adaptive research

trials for practices not yet tested under Malawi’s agro-ecological conditions; (iii) development of

training materials for extension workers and smallholder farmers; (iv) training of extension cadre in the

GAPs; (v) demonstration of GAPS in farmer fields by lead farmers; and (vi) simultaneous sharing of

knowledge and skills within farmer field schools.

41. Dialogue between local and national levels and across climate change and agricultural policy

fora is essential to create an enabling environment for the effective and broad adoption of climate-

resilient technologies and activities. PRIDE will share lessons learned on climate-smart agriculture

through workshops, factsheets and a national symposium. This will contribute to the country’s

capacity to elaborate and implement effective and harmonised policies for climate-related

interventions in agriculture.

25

http://www.fao.org/climatechange/epic/home/en/

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42. The climate change adaptation activities incorporated in the PRIDE design are summarised in

the table overleaf. ASAP funding is proposed for the soil- and water conservation measures in

components 1.3; and the good agricultural practices in component 2.1 and 2.3 (improved cooking

stoves).

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Climate risks

identified

Shorter duration of

rainy season (late

start and early

finish)

Drought events Prolonged dry spells Flood events Increasing

temperature

Impacts on

production and

infrastructure

Replanting of crops required

Yields reduced

Limitation in varieties of crops

Crop failure

Delayed planting

Reduced availability of and competition for water

Reduced areas for irrigation

Changes in crop selection based on water availability

Reduced crop yields Destruction of crops

Damage of rural infrastructure including irrigation facilities, access roads and post-harvest facilities

Increased sedimentation in rivers and streams

Reduced yields for sensitive food crops such as maize

Location Country wide Country wide but more

pronounced in northern and

central regions

Country wide More frequent in

southern districts

Country wide

Option of activities and investments to be funded through ASAP in PRIDE

Component 1

Irrigation

development and

Catchment

Management

Vulnerability assessment to identify and prioritise degraded and vulnerable hotspots in catchments including support from GIS assessments

Capacity building (training and mentoring) for community based NRM

Conservation area management model to be developed with immediate stakeholders, resulting in a trade-off between conservation and local benefits

Multipurpose vegetated contours for erosion control

Gully plugging as and when required

Restoration of soil cover and reforestation of erosion-prone areas

Community nurseries and woodlots on communal land

Component 2

Agriculture and

Market Linkages

Improved climate information (collection and dissemination) – portable weather forecasters, equipment for officers, assessment of agro-meteorological network and upgrading where necessary to automated weather stations to contribute to national monitoring. Translation of forecasts into local languages will be facilitated

Conservation agriculture (based on principles of minimum tillage, mixed cropping and maximum crop cover

Soil fertility improvement through agroforestry and composting

Farmer field trials to optimise irrigation scheduling and improving crop water productivity

Livelihoods diversification options, potentially livestock

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Appendix 15: Mainstreaming nutrition

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1. Introduction. The purpose of PRIDE is to upgrade and promote irrigation schemes and

improve the management of the catchment area in order to enable smallholder farmers improve their

livelihoods by increasing their incomes with positive nutritional outcomes. Building on the success of

IRLADP and the fact that increases in income and access to food do not guarantee good nutrition

PRIDE therefore, aims to mainstream the nutrition perspective from the design stage. The

opportunities and pathways for leveraging agricultural development to positive nutritional outcomes

are identified in the PDR.

2. Nutrition situation. According to the nutrition surveys in Malawi, child stunting and anaemia

remain the persistent malnutrition problem in the country (table 1). There has been sluggish progress

in improving child nutrition in Malawi, despite the progress in the country’s macroeconomic

performance. The review of previous Malawi Demographic Health Survey (MDHS) data indicated 49%

stunting rates in 1992, which stagnated at 49% in 2000, then dropped by 1% in 2004 and the current

data, 2010 had a sluggish 2% decline. Currently, nearly half of the children under the age of five years

are stunted (47%) with a higher proportion of males (51%) than females (43%) and higher prevalence

in rural areas 48%, versus 41% in urban areas. The stunting situation according to the three regions

of Malawi is: 45% in the North, 47% in Central, and 48% in the South. In terms of districts, Chiradzulu

had the highest stunting rate of 57% while the lowest rate was in Karonga at 38%. Anaemia ranges

from a high of 77% in Chikhwawa to a low of 46% in Chiradzulu district. These prevalence rates are of

serious public health concern because of the consequences on cognitive, motor development

impairment, increased morbidity from infectious diseases and the irreversible lost growth potentials in

children.

Table 1: Nutritional status of children under 5 years in Malawi

Malnutrition Residence

Rural Urban

Region

North Central Southern

Total

Stunting 48 41 45 47 48 47

Wasted 4 2 2 4 4 4

Underweight 13 10 11 14 13 13

Anaemia 64 53 58 64 62 63

SOURCE: MDHS, 2010

3. Nutrition concern: Poor feeding practices have been identified as an important factor of child

malnutrition in Malawi. A large body of research indicates the influence of agricultural activities on

child feeding and nutritional status, through household food security and women’s caregiving capacity.

Agricultural labour may take time away from childcare or force caregivers to feed children in work

environments. Unintentional adverse effect through agricultural activities such as exposure to toxins

i.e. aflatoxin can deleteriously affect women’s health, nutrition and negative consequences for child

growth and development. PRIDE activities from agriculture to dietary diversity will therefore, adapt

improved technologies to mitigate adverse effects and indicators will be integrated to track and

monitor progress on beneficiaries. Actions supporting adequate food consumption, from various food

groups and considerations on female workload will accelerate the target of 80% reduction in child

malnutrition.

4. The verification indicators for the programme goal as stated in the logframe should be specified

on the form of malnutrition. For PRIDE, stunting is the nutrition indicators of relevance at goal level.

Other relevant indicators for tracking and monitoring PRIDE contribution to nutritional outcomes

should include: women of reproductive age (15-49) body mass index (BMI), Women Dietary Diversity

Score (WDDS) and time spent on accessing food, fuel. WDDS is a proxy indicator for micronutrient

adequacy and also means of measuring impact on dietary diversity. PRIDE will collaborate with FAO

to conduct the dietary diversity survey utilizing the FAO guidelines on dietary diversity scores, which

have already been adapted by LUANAR for Malawian foods and language (Chichewa).

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5. Scaling Up Nutrition (SUN) movement: PRIDE will harmonise activities with GOM and other

development partners to support the SUN movement. Nutrition is one of the GOM areas of investment

and a priority in the MGDS II. The Office of the President and Cabinet, Department for Nutrition, HIV

and AIDS has established multi-sectoral coordination of nutrition programme implementation at

national, district, village levels and is planning to deploy nutritionists in the local councils to improve

coordination, monitoring and reporting. PRIDE collaboration with UN Malawi Nutrition Network is an

opportunity of bringing IFAD comparative advantages and participation in the United Nations

Development Assistance Framework in support to the MGDS II and the SUN initiative.

6. Nutrition Education and Communication Strategy (NECS): NECS is one of the

government’s key instruments for the SUN movement, which aims to strengthen and harmonize the

systems of SUN messages and practices from national to grassroots level. PRIDE will support

capacity development of service providers through NECS by working closely with Food and Nutrition

Officers, DAES in collaboration with UN Malawi Nutrition Network and other key partners.

7. Trainings and technical assistance: Extension services and trainings on nutrition will be

carried out through the DAES system. This is a multi-stakeholder approach of coordinating and

implementing agricultural extension activities at national, division, district, Agricultural EPA,

Agricultural sections and community levels to bring service delivery closer to beneficiaries. Services

will be provided to farmers and beneficiaries by the lead farmers through established farmer groups,

care groups and village associations. These lead farmers will receive trainings from the AEDOs who

are trained and supervised by agricultural extension development coordinators (AEDCs) at EPA level.

These AEDCs are coached by Food and Nutrition officers and other relevant specialists at district

level.

8. The AEDCs, AEDOs, lead farmers will be supported with mobility to facilitate their nutrition

activities at Village Development Committees (VDCs), farmer business schools, farmer field schools,

Water User Associations (WUAs), Water User Groups (WUGs). PRIDE will support development of

IEC materials, demonstration equipment and refresher courses for DAES staff where gaps are

identified to assist, improve and update their nutrition knowledge and communication skills. The

mission learnt that there is lack of specialized staff at EPA level. MoAIWD is advocating with

government to create a permanent position of nutrition officers at EPA level.

9. Linkages: Following the consultation and meetings with the UN Malawi Nutrition Network,

PRIDE will develop into an integral part of on-going nutrition activities by development partners in

districts to maximize impact and generate synergies in agriculture for good nutrition. Through the

framework of NECS, PRIDE will build linkages with UNICEF on nutrition awareness and

communication, FAO on nutrition education, food diversification, food consumption surveys,

integrated homestead farming production (IHFP) and any other food related activities that exist within

the district.

10. Integrated homestead food production will complement Subcomponent 2.2: activity on

Livelihood Diversification to facilitate adequate food consumption at household level. IHFP is an

approach to improve diverse food access, primarily proteins and micronutrients (vitamins and

minerals), as well nutrition information. The nutrition education component of IHFP is to ensure that

increased food production and income is not an end to beneficiaries, it will complement the actions for

food availability, access and diversification to encourage adequate consumption. Capacity will be

developed by supporting training of trainers who can roll-out the toolkit on IHFP to the villages. PRIDE

will collaborate with FAO on this activity.

11. Improved cooking stoves: PRIDE will integrate an initiative on improved cooking stoves to

support interventions on crop diversification and women active participation. Efficient cook stoves

greatly reduce, or even eliminate the need for women and girl children to gather and carry heavy

loads of firewood over long distances, thereby increasing the availability of energy for women to

provide support for infant and young child care and nutrition. Cleaner efficient cooking stoves are

labour and time saving technologies that not only free up time and energy for women and children but

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reduce their exposure to dangerous biomass smoke pollution, reducing sickness and improving

productivity and health at the family level.

12. Provision of improved stoves will target 10,000 households adopting the good agricultural

practices (GAP). The gender mainstreaming and targeting approach will be adopted in reaching out to

all female headed households, child headed households, households with people suffering from

disabilities, chronic illnesses such as HIV/AIDS. All the farmers’ clubs/groups and the ultra-poor

groups with extremely limited resources and food and nutrition insecure will also be targeted for this

activity. To target more beneficiaries on the stove usage, TLC-SAPP model will be adopted in training

the extension workers and field coordinators for rolling out stove demonstration to other farmers in the

communities.

13. Crop diversification: The action on production of diversified food crops should identify and

include indigenous plants with nutrition potentials. In Malawi, there is a wide range of domesticated

and wild food species that possess superior nutritional value than the staple crops. Identification of

priority species could be included in the baseline survey. For example moringa oleifera, a local plant

commonly grown in Malawi has great potential for vitamin A deficiency intervention.

14. Post-Harvest Management: The actions involved in post-harvest handling, food processing,

transportation, marketing and storage could involve research activities on nutritional value and safety

of commodity and products. PRIDE should engage with research centres to coordinate this activity

through the RLEEP research grant window. Post-Harvest Management (sub-component 2.2) should

pay attention to aflatoxin control in groundnut and maize commodities. Aflatoxin testing equipment

should be made available to farmers to ensure safe consumption and quality of product for good

markets. Activities on value chain should include the development of value added products that are

nutrient dense. This will support the production and increase choices of nutritious foods in the

markets.

15. Baseline survey: For effective measurement of PRIDE contribution to the nutritional status of

beneficiaries as stated in COSOP, baseline information on nutrition situation and food pattern will

serve as benchmark data. Information to be included in the baseline survey are; child malnutrition

(stunting, micronutrient deficiencies), Women body mass index (BMI), Minimum Dietary Diversity for

Women (MDD-W) and time spent on accessing food, fuel. Reduction in time spent on accessing food,

fuel will serve as a proxy indicator for measuring project support to care giving and maternal nutrition.

Secondary data on nutrition can be derived from existing surveys such as the Malawi Demographic

Health Survey (MDHS), Multi-cluster Indicator Survey and National Micronutrient Survey.