NTHOLA ILORA RICE IRRIGATION PROJECT

Project description

The Greenbelt Authority, in conjunction with farmers in Karonga District, Northern Malawi, is implementing a project to develop a rice irrigation scheme and rice processing factory for local and export markets. The project aims to pump water from Lake Malawi to irrigate an area of 1,000 hectares (ha).

The project has made significant progress, with the following milestones achieved:

• The necessary land has been secured.
• The rice processing factory has been constructed and successfully tested.
• Designs for the irrigation scheme are complete.

The demand for rice is high, with a strong market potential in Malawi's domestic sales and major supermarkets. Additionally, there is a significant opportunity to expand into the South African market, which demands approximately 1 million tons of rice per year. The project also has potential for regional exports within the Southern African Development Community (SADC) and Common Market for Eastern and Southern Africa (COMESA), as well as Europe and Asia.

The project is seeking an investment partner to contribute to the development of the farm and supporting infrastructure through an equity investment. The investor will join forces with a private company to operate the factory and will be responsible for financing the construction of the irrigation scheme. Additionally, the investor will collaborate with local farmers and the Greenbelt Authority to undertake large-scale rice production.

The Green Belt Authority, is a government of Malawi corporation, which champions large-scale commercial irrigation through efficient use of land and water resources.

Financial requirements

Total project costs are estimated at EUR9.3 million (US$63 million)

Project feasibility

A comprehensive financial feasibility study will be conducted in partnership with the identified potential investor(s) to assess the project's economic viability.

Proposed investment model

The proposed investment model is an Equity Investment model, where the investor will contribute to the development of the farm and supporting infrastructure in exchange for an equity stake in the project. The investor will also have a significant level of involvement in the project, including operational responsibilities and decision-making authority.

Contact

The Chief Executive Officer

Greenbelt Authority

P.O Box 30776

Lilongwe

• Eric Dudley Chidzungu, Chief Executive Officer, echidzungu@gba.gov.mw
• Linda Phiri, Director of Finance & Investments, lphiri@gba.gov.mw
• Chisomo Kumbuyo, Director of Irrigation Operations, ckumbuyo@gba.gov.mw
• info@gba.mw; ceo@gba.mw