Malawi Delays Maize Payment to Zambia Due to Funding Issues

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Malawi Delays Maize Payment to Zambia Due to Funding Issues
Malawi Delays Maize Payment to Zambia Due to Funding Issues

Africa-Press – Malawi. Malawi’s delays to remit to Zambia 40 percent or about K53.9 billion ($30.8 million) of the total cost of 200 000 metric tonnes (MT) of maize have held up inflow of the grain into the country.

In a written response to The Nation enquiry on the status of the maize imports meant to fill a national deficit of 800 000 metric tonnes (MT), Ministry of Agriculture, Irrigation and Water Development spokesperson Arnold Namanja said authorities are still working on arrangements, including processing of a down paymet

In total, Malawi is to pay about K134.8 billion ($77 million) for the maize deal which President Peter Mutharika sealed with his Zambian counterpart Hakainde Hichilema mid last month and was formally signed on October 22 2025 in Lilongwe by the two countries’ ministers of Agriculture.

Mutharika, speaking on arrival in Lilongwe from Mangochi on October 29, indicated that the maize would start arriving in the country from Friday, October 31 2025.

But Namanja said: “The ministries of Agriculture, Justice and Treasury together with the National Food Reserve Agency [NFRA] are currently working on finalising the requisite paperwork, identifying transporters, and putting in place the required logistical processes to facilitate the smooth delivery of the maize.

“According to the agreement, the Government of Malawi is required to pay 40 percent of the total contract value before the maize is uplifted into the country.”

Namanja said various stakeholders, including cooperating partners such as the World Bank are working to finalise the 40 percent transaction to enable the maize deliveries to start.

But for the four million Malawians hit by acute food insecurity this year, help cannot come soon enough as government struggles to mobilise resources.

During the launch of the 2025-26 Lean Season Food Insecurity Response Programme in Machinga on November 1 2025, Minister of Agriculture, Irrigation and Water Development Roza Fatch Mbilizi said total requirements for the food security cluster stand at K168.82 billion ($96.42 million), but only K46 billion ($26.18 million) had been mobilised.

“The plea of the government is that we need to fill up this deficit to make sure that this programme runs smoothly. It’s a six months programme and we know that our donors will be forthcoming,” she said.

On how the available money will be used, Namanja said stakeholders are working closely and swiftly to ensure efficient utilisation to support the importation process.

“It is the wish of the government that this process of negotiations and documentation is accelerated so that maize deliveries can commence.

“This coordinated approach will guarantee timely delivery of the maize and adequate stock levels in the Strategic Grain Reserves [SGR] to meet national food security needs during this lean season,” he said.

The maize deal, signed on October 22 in Lilongwe, is aimed at stabilising the price of maize in the country and provide as relief to four million Malawians facing hunger as per the Malawi Vulnerability Assessment Committee (Mvac) data.

The lean period will cover six months from October 2025 to March 2026, according to Department of Disaster Management Affairs (Dodma).

Meanwhile, Dodma is drawing 25 982.24MT from the SGR under NFRA which it has started distributing to those in need.

State produce trader Agricultural Development and Marketing Corporation is also scheduled to draw 10 000MT from the SGR for price stabilisation while NFRA is expected to continue buying maize from mega farmers and others locally to supplement the Zambia imports.

In a separate interview, Dodma spokesperson Chipiliro Khamula said while the relief exercise has started, in most cases, targeting of beneficiaries is ongoing.- mwnation

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