SFFRFM seeks K100 bn for recapitalisation

The Smallholder Farmers Fertiliser Revolving Fund of Malawi (SFFRFM) says it needs K100 billion for recapitalisation to replenish its warehouses with 89 000 metric tonnes of fertiliser. SFFRFM acting chief executive officer Master Gadama said in an interview the recapitalisation would replenish fertiliser stocks depleted between 1995 and 2004 when its operating model was changed from a fertiliser reserve agency to a trading organisation. He said the organisation also presented the same request to Parliamentary Cluster Committee on Agriculture and Food Security and Natural Resources, Energy and Climate Change, noting that with the recapitalisation, the fund would get back on a path to sustained growth, increased profitability and the purpose of revolving fertilizer with stocks that could run throughout the year.

Gadama said unpaid debts, about K21 billion owed by Mega Farms Unit and K2.5 billion by the National Economic Empowerment Fund (Neef), have worsened the fund’s liquidity problems. “Recapitalisation would be beneficial as SFFRFM would stabilise fertiliser prices, timely procure fertiliser at cheaper prices and meet supplier’s payment terms. Again, we shall be able to support government projects adequately through its procurements,” he said.

Gadama said late disbursement of funds crippled the institution’s Fisp role in the 2025/2026 farming season, leading to late purchase of fertiliser and theslow redemption rate. He said the country has huge potential of producing top dressing fertiliser. Gadama said in the upcoming season, the organisation intends to undertake early Fisp preparations, with a plan to complete procurement of fertiliser by August to reduce redemption challenges in the subsidy programme.

[paywall]

“We are looking at having our own manufacturing plant which will be biggest in Malawi. We have partnered with a number of organisations and locally, there is Lilongwe University of Agriculture and Natural Resources, Mtalimanja Holdings and Wait Holdings of Mlimi Fert in Lunzu. SFFRFM will also be engaging other international suppliers,” added Gadama.

Treasury spokesperson Williams Banda said the Minister of Finance will address those issues in his budget winding statement. He said budgets are formulated in consultation with ministries, departments and agencies (MDAs). Meanwhile, co-chairperson of the cluster committee Tiaone Hendry called for early disbursement of funds to enable SFFRFM to implement its plans.

Hendry said the organisation implements programmes that border on food security and timely disbursement of funds is critical to its operations. Agriculture expert Leonard Chimwaza said the call for recapitalisation of SFFRFM is genuine, but advised there should be reduced political interference.

[/paywall]