GRAIN AND CEREAL PRODUCTION PROJECT

Project description

The project aims to undertake large-scale wheat production, which will be strategically integrated with maize and soybean cultivation. The project will also incorporate value addition through the construction of agro-processing facilities for wheat and soybean processing. Wheat is a strategic crop in Malawi, as it is the second most consumed staple cereal after maize. The project will be implemented on 1,168 hectares (ha) in Mchinji and Kasungu Districts, Central Malawi. The project will contribute to import substitution of wheat, as Malawi imports a significant amount of wheat, with a total import value of US$21 million in 2022. Currently, Malawi imports 99% of its wheat requirements, and the local market is expected to absorb all the produced wheat, with potential for exporting any surplus.

The project is seeking an investment partner to contribute additional capital to expand the project, develop further irrigation infrastructure, and construct additional agro-processing facilities. This project is being implemented on land belonging to Bry Holdings Limited, a local company, and will be structured as a public-private partnership. With irrigation infrastructure already in place and production underway, the additional capital will be used to expand the project accordingly.

The project is being promoted by the Green Belt Authority, 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 EUR11.1 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 for this project is a Business-to-Business (B2B) model, which will enable interested partners to contribute capital to the investment through a shareholding structure. This model will allow partners to invest in the project by purchasing shares, providing a mutually beneficial opportunity for both the project and the investors.

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