AGCOM 2 Program: Targeting Women only and Youth only Producer Organisations in Malawi (Window 1)

Deadline: 28-May-25

The Ministry of Agriculture in close collaboration with the Ministry of Trade and Industry is implementing the Agricultural Commercialisation (AGCOM 2) Program with a grant from the World Bank amounting to US$265 million and additional financing from Multi Donor Trust Fund (MDTF) funded by the EU, Ireland, Norway, and Flanders.

The objective is to increase the resilience of food systems and the country’s preparedness for food insecurity in program areas. AGCOM 2 is part of the Food Systems Resilience Program, a regional program that is being implemented in four countries comprising Somalia, Kenya, Comoros, and Malawi including the African Union.

Windows

• AGCOM 2 Program will continue to provide Matching Grants which have been categorized in the following three distinctive windows:
  • Window 1: This window is targeting Producer Organizations (POs) that are accessing the AGCOM Matching Grants for the first time. The matching grants will be primarily for investments that will increase the marketable volumes (production) to support the commercialization among the POs.
  • This window will implement a high-impact Productive Alliance (PA) approach. The PA is based on a commercial agreement between the program-supported Producer Organizations (POs) (i.e. farmer cooperatives, associations) and commercial off-takers (buyers). In a PA, the PO is guaranteed a predictable market while the off-taker is guaranteed a predictable and consistent supply of the agreed commodity.
  • Window 2: Using the PA approach, this window primarily focuses on POs that have benefitted from AGCOM 1 or any other POs that can demonstrate high volume to sustain value addition.
  • Window 3: This window focuses on micro, and small-medium enterprises that are working with smallholder farmers to increase production, improve quality, and enhance value addition. SMEs such as offtakers, aggregators, anchor farmers, and processors will be provided with matching grants to meet their expansion requirements.

Funding Information

• The AGCOM 2 Window 1 matching grant shall not exceed the Malawi Kwacha equivalent of US$ 2,500 per listed member or beneficiary.

Use of Matching Grants in Window 1 

• Procurement of productive assets that increase volume and improve quality of produce,
• Technical assistance that aids in increasing production and quality of produce, and
• The PO subproject should include environmental and social safeguards.

Eligibility Criteria

• For Window 1 
  • (Women Only and Youth Only Window) Women Only and Youth Only POs applying for matching grants under Window 1 will be required to fulfill the following eligibility criteria:
    • The PO should be an eligible farmer organization/group.
    • The group must have basic interim leadership, bylaws or regulations. and evidence of prior meetings.
    • The PO must indicate a commitment to train and become a cooperative;
    • The PO should have 20 members and above. POs with large membership will be prioritized;
    • For the PO sub-projects with individual investment intervention, members must be within a 20-kilometer radius of each other. For PO subprojects with collective asset intervention. members may come from varying areas. The PO should have a committed off-taker with a signed commitment letter that is valid for 24 months, and the Off-taker must be prepared to sign a commercial agreement at a later stage.
    • All agricultural value chains are eligible except tobacco. The chosen value chain and proposed sub-project must demonstrate revenue within 24 months.
    • Evidence of ownership of land for collective assets (this could be any of the following: Lease, Customary Land Certificate, Change of Ownership document, and stamped letter from the relevant Traditional Authority). Land for individual members involved in crop production should not exceed 8 hectares (58 hectares).
    • PO subproject should include environmental and social safeguards All business cases must adapt climate resilience/climate smart technologies e.g. technologies for soil fertility improvement, soil and water conservation. and agroforestry tree cultivation.

For more information, visit Malawi Agricultural Commercialisation.