By Mark Ndipita
Empowering farmers for sustainable growth is at the heart of the Malawi Food Systems Resilient Program (MFSRP), locally branded as the Agricultural Commercialization (AGCOM 2) Programme. In a significant step towards this goal, the initial cohort of Producer Organizations (POs) identified to receive matching grant support has successfully completed comprehensive training in bookkeeping, accounting, and procurement procedures.
This crucial initiative ensures that these farmer organizations are well-equipped with the practical skills needed for the prudent financial management and accountability essential for their matching grants sub-projects.
This specialized training forms a vital part of MFSRP's broader support package for farmer groups. Beyond financial literacy, the program offers a range of assistance, including matching grants, Last Mile Infrastructure (LMI), Technical Assistance (TA), Malawi Bureau of Standards certification, and land registration certificates. This holistic approach is designed to provide POs with every tool necessary for success.
The training in bookkeeping, accounting, and procurement is specifically designed to clarify the roles and responsibilities of PO members and office bearers, including chairpersons, secretaries, treasurers, and sub-committee members. The ultimate aim is to ensure the effective and efficient utilization of MFSRP matching grant resources.
Christen Malaidza, MFSRP Institution Development Specialist, highlighted the main aim of the trainings which the Program offers to POs. “The training empowers PO committees with essential tips on resource mobilization,” Malaidza explained.
He added, “This is crucial to help farmer organizations raise both their 10 percent cash and 20 percent in-kind contributions within the required timeframe, as stipulated in the grant agreement.”
“This training equips PO committee members with a step-by-step understanding of standard procedures for bookkeeping and accounting. Equally important, it covers strategies for resource mobilization, addressing a common challenge for some POs in raising their matching contributions”, Malaidza elaborated.
Farmers and experts in Malawi’s agriculture sector have commended the impact of MFSRP trainings to farmers before they start implementing matching grant sub-projects.
Martin Tembo is a member of Kuwala Cooperative from the rural area of Lilongwe, the capital city of Malawi. He praised the initiative after attending the capacity building training. “I commend MFSRP for organizing this training. It will significantly improve how our cooperative manages procurement and finances,” Tembo said.
“The training has been a true eye-opener. Previously, we weren't consistently recording our incomes and expenditures. Now, we understand the critical importance of keeping thorough financial records.”, Mr Tembo added. Mr Tembo emphasized that the procurement procedures learned during the training would be instrumental in safeguarding sub-project financial resources.
Francisco Sadyamtambe is the Agribusiness Officer in Ntcheu district located about 160 kilometers south of Lilongwe. He echoed the sentiments by farmers and commended AGCOM 2 for empowering farmers to properly record their financial activities and track profitability.
“Recording financial activities is fundamental in farming,” Sadyamtambe emphasized, adding that these records enable farmers to track their income and expenditure, ultimately helping them determine if they are making profits or losses.
The importance of the training was further underscored by Mr Wiskes Nkombezi, the Assistant Director of Trade in the Ministry of Trade and Industry. “Good financial management is absolutely key and strategic in managing businesses run by cooperatives,” Nkombezi explained. He added that the skills acquired by farmers will assist their cooperatives in achieving financial growth and prudently managing the matching grants they receive from MFSRP.
The comprehensive training curriculum covers vital topics such as the definition and objectives of bookkeeping and accounting, understanding source documents, the nature and preparation of financial statements, and detailed financial management and procurement procedures specifically for goods, works, and services under MFSRP matching grants.
The training approach is Trainer of Trainers (ToTs) and it targets three key members from each PO, particularly those holding leadership positions within the executive, finance, supervisory, and procurement committees.
The District Agribusiness Officers and MFSRP Technical Implementation Support (TIS) Brokers also participated in the training, enabling them to further disseminate this crucial knowledge to other PO members in their respective districts, fostering a ripple effect of financial literacy across Malawi's agricultural landscape.
