24 January 2012: The International Fund for Agricultural Development (IFAD) signed a loan worth US$22.85 million and a grant for US$22.85 to Malawi to address food security and poverty in six rural districts.

According to IFAD, farmers in Malawi have been challenged by increased droughts and floods over recent decades. It notes that these farmers require additional skills, knowledge and access to credit to diversity their crops and more effectively respond to climate change.

Given the importance of agriculture in the Malawian economy, employing 85% of the population and contributing to almost 45% of GDP, the project will support improved agricultural productivity through access to tools, equipment, seeds and fertilizers, financial services, post-harvest facilities, and improved market infrastructure. [IFAD Press Release]