NEWSLETTER

ISSUE 1 | 03.05.2019

INSIDE
PROJECT SUCCESS
STORIES

CASE STUDY:
AFRISPHERE

COMPANY INSIGHTS:
LILONGWE DAILY

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ISSUE 1 | 03.05.2019

WHAT
IS MICF
Mr. Navin Kumar
MICF Fund Manager

As we move ahead in 2019,

we would like to share the
achievements and lessons
from some of our projects
over the last 4 years of
implementation. Through
our portfolio, Malawi’s
private sector continues
to demonstrate willingness
to adopt innovative new
business models that show
potential to strengthen
the sector whilst delivering
sustainable social impact.
With a new round underway,
we look forward to further
success in the year ahead
and continue to be
impressed by the levels of
innovation delivered by the
Malawian private sector.

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 ISSUE 1 | 03.05.2019

The Malawi Innovation ➢ Project evaluations for Window projects underway

Challenge Fund (MICF) co- completed first-round and baseline surveys to
funds innovative business projects contracted in 2014. be conducted. The MICF
ideas that have potential for The surveys will evaluate the evaluation team will assess the
significant social impact put changes in livelihoods and current status of those who
forward by the private sector impact on employment for hope to benefit from these
in Malawi. Over the past 4 the projects beneficiaries and innovative irrigation projects.
years, the fund has launched assess the health of those
4 competitive rounds spread private sector businesses after ➢ 4th Round Projects Awarded.
across the Agriculture, project implementation. In December 2018, the
Manufacturing, Agribusiness, investment panel reviewed
Logistics and Irrigation sector. ➢ Continued implementation 102 applications and chose 21
The Year Ahead. With a current of 2nd Round projects. Of successful candidates to move
portfolio of 23 projects, 2019 the 8 projects which were on to the proposal stage. The
is shaping up to be another contracted for the Agribusiness large number of applicants
busy one for MICF with many and Manufacturing and shows the high number of
of our original projects coming Logistics Windows, 2 have private sector companies
to an end and new projects completed implementation looking for opportunities
starting implementation. with more expected this year. to develop and innovate.
Highlights are expected to Matching grants will be
include: ➢ 3rd round Irrigation awarded in 2019.

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 ISSUE 1 | 03.05.2019

SUCCESS
STORIES

Satemwa Tea Company blend of teas position the

constructed a new processing company as a major player
and packing facility and in the lucrative high value Sunseed introduced a
developed an inclusive tea market, and broaden the fridge free margarine into
business model to incorporate scope for Malawian tea to be the Malawian Market. The
smallholder tea farmers celebrated both locally and margarine, Sunspread,
into the supply chain. Their internationally. provides a locally produced
distinctive and innovative alternative to South African

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 ISSUE 1 | 03.05.2019
PROJECT SPOTLIGHT

margarines within retail outlets. Roseberry Farms successfully has been able to break into
The company contracted set up a smallholder led all the major supermarkets
over 10,000 farmers to supply supply chain and constructed in Malawi, and reduce the
raw material which acted as greenhouses to produce high country’s reliance on imported
a catalyst for income growth value horticultural crops. vegetables.
amongst smallholder farmers. Through this, the company

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AFRISPHERE

“ If commercial cattle buying can

be extended to benefit more
people, Nyama World will have

“
more produce to sell, and the
whole livestock industry will
become sustainable.
– Ms. Marie B. Khongolo
September 2014 – December 2018 Despite being home to nearly to produce quality-assured,
80% of the nation’s cattle, the local beef or beef products. In
From livestock to livelihoods; how Northern region of Malawi fact, with significant capacity
the beef industry is transforming has not – until now – had gaps amongst farmers, limited
life for smallholders in Northern knowledge around disease
the infrastructure in place
Malawi and disease control, and a

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In 2014, Afrisphere Ltd., trading and the cattle farmers is

as Nyama World, set out just beginning, with the
to disprove this notion, with smallholder remaining center
an ambitious project using stage. Over the coming
inclusive business models years, the company has
to prove that putting the ambitious targets to train a
smallholder center stage of further 20,000 farmers with
the beef value chain could the intention of absorbing
lead to commercial success in them into their ever-growing
Northern Malawi. network of partners. After
all, as the number of farmers
Four years on, and it is clear and cross-bred cattle grows,
to see that the project is so does Nyama World. They
flourishing. With the successful actively encourage self-
introduction of the Bonsmara sufficiency within the farmers
bulls, via an intensive cross- clubs and hope for the
breeding programme, farmers to one day have the
smallholders are profiting means available to purchase
from the increased yield and their own Bonsmara bulls of
training offered. More than the highest quality. It is these
10,250 farmers have been synergies and partnerships
trained to date and many that the MICF encourages;
more are benefitting from the providing opportunities to
company’s disease prevention explore new innovations that
efforts. Across the value chain could change the face of the
more than 200 jobs have been private sector in Malawi and
created: within the expansive the lives of its people.
feedlot in Bolero, at the
abattoir in Mzuzu, and in the
10 retail shops across Malawi.
Key Project
Innovations:
The company-wide initiatives

“
to engage and empower ➢ Cross-breeding Bonsmara
women and youth across the and local cattle, leading to
clubs also have a tangible quicker animal growth for
social impact; challenging smallholders.
traditional gender roles ➢ The construction of the first
within these communities, non-stun, halal, abattoir built
encouraging youth to favour in the region.
lack of processing facilities; it staying in Malawi over ➢ Developing the first farm-
has long been assumed that emigration and allowing to-plate cattle traceability
smallholder-led supply chains families to share both financial system in Malawi.
are doomed to fail in these and labour burdens. ➢ Empowerment of women and
parts. youth within the community by
The story of Nyama World challenging traditional roles.

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COMPANY INSIGHTS

LILONGWE
DAIRY

Lilongwe Dairy conceptualized

this project in 2016 with the aim
of addressing the challenges
identified in both the downstream
and upstream side of production.
The company aimed to set up
a new milk collection model
including a farmer pass on
scheme and traceability system
that would lead to the production
and marketing of a new UHT milk
product. Specifically, the project
focuses on the following key
elements:

1. Improving milk collection

operations by setting up storage
infrastructure and cooling tanks to
reduce wastage.

2. Introducing new improved

breeds of cattle & provision of
technical backstopping support
to farmers.

3. Introduction of Family Pack UHT

milk products.

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What are
the current
developments in
the dairy market?
The dairy sector within Malawi
is still growing, we have had
good growth consistently over
the past 2 years. Last year,
Lilongwe Dairy had a growth
rate of 47% and the sector as
a whole grew about 28%. The
year, 2018, commenced with
a growth rate of 40% on the
demand side and 20% on the
supply side.

What do you
attribute the rapid
growth of Lilongwe
Mr Edwin Chilundo, General Manager
Dairy to?
of Operations, provides insights on Malawi is predominantly an
the successful implementation of the importing nation; we import
project. over 50% of the dairy basket
into Malawi. Manufacturers
such as Lilongwe Dairy,
have never had adequate

“
supply to fulfill the basket.
Implementation of the project
through MICF has resulted in
the increase of supply from
small-scale farmers which has
enabled the diversification
This type of collaboration of our product portfolio. In
or partnership with MICF addition, we have managed
to reduce the cost of
was groundbreaking. manufacturing which has led
Mr Edwin Chilundo to a 40% increase in demand
General Manager Operations for our products. This has
made us competitive against
imported goods, helping us to
achieve greater market share.

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What products that and reached 33%, which

was much more than what we
are engaging the had expected.
consumer base?
We granted 182 heifers to
The product that we launched female farmers to increase the
through MICF, the 1 litre production and quality of milk.
milk pack, is reaching new The farmers were supported
segments. We could not reach with training, infrastructure,
these segments, because we working capital, and extension
had technological limitations; backstopping.
we did not have the platform
or equipment that could Also, as a result of the demand
produce the packs. Through pulling the supply, prices
the MICF project, we were able improved much better than
to manufacture the products they were before. Initially, price
locally and start replacing was 155MWK per litre and
imported equivalents. increased by 20% in a 2-year
period.
We have observed
an increase in the Do you have
volume of milk any comments
procured and the regarding MICF
increase in income and how they
of smallholder managed to share
farmers after the the inherent risk
deployment of the associated with the
project, what do project?
you attribute this
This type of collaboration or
increase to? partnership with MICF was
groundbreaking, we would
The project particularly looked not have been able to invest
at improving milk collection. By in the supply chain because of
putting the infrastructure in the the risk involved. The company
rural areas, it allowed us to be would have struggled to
closer to the milk production. invest in a cooling center, the
The more we moved closer infrastructure and secure the
to the milk production, we raw milk. MICF shared the risk
experienced less losses in the with us and that has paid off
supply chain. The project had as majority of farmers bought
estimated saving supply chain into the concept of the new
losses of 8-12%. We exceeded supply model.

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Lilongwe
Dairy
Social Impact
Achieved

2,700 existing smallholder 182 female farmers receive

farmers actively supplying additional income of US$800
milk on a daily basis to the per annum through milk sales
company and have improved
incomes.
from new heifers. 44 New Jobs created.

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Farmer Insights
Hearing firsthand from farmers on what the project has meant for them.
ISSUE 1 | 03.05.2019

Name: Chrissie Wyson Name: Linly Manyera Name: Eliza Malewule

Number of years worked with Number of years worked with Number of years worked with
Lilongwe Dairy: 5 years Lilongwe Dairy: 4 years Lilongwe Dairy: 18 years
Ms. Wyson: Building a cold Ms. Manyera: I managed to
HOW HAS BEING
room within the area has re-pay the loan provided for
ASSOCIATED WITH
improved my income as I can the heifer I was given to start
LILONGWE DAIRY IMPACTED
now sell all the milk which is my business in dairy farming.
YOUR INCOME AND
LIVELIHOOD? produced.
Ms. Malewule: Lilongwe Dairy
Ms. Manyera: Previously, is able to buy all the milk from
Ms. Wyson: Through the
people came from Lilongwe to me as long as the milk is of
income from dairy farming I
test the milk we produced, and high quality. Previously, they
supported my children with
now, the testing (for quality) is could not buy all the milk I
school necessities and now
done in close proximity. brought forward for sale.
they have all completed their
education.
Ms. Malewule: Lilongwe Dairy DO YOU FORESEE YOURSELF
informs me about price CONTINUING TO WORK
Ms. Manyera: Previously I could
changes in advance. WITHIN THIS INDUSTRY FOR
not afford to purchase food
THE NEXT 5-10 YEARS?
for my family, the income from
Lilongwe dairy comfortably WHAT CHANGES HAVE YOU
OBSERVED WITHIN THE PAST Ms. Wyson: I promise to
supports my food purchases.
COUPLE OF YEARS WITH proceed with dairy farming
THE ADDITION OF BETTER ‘forever’.
Ms. Malewule: I have managed
to build an iron sheet- INFRASTRUCTURE AND
PROVISION OF HEIFERS? Ms. Manyera: I am optimistic
thatched house and use fecal
and will continue working
wastes from cows as organic
Ms. Wyson: I now have my within this industry.
fertilizer at my farm.
milk sold without any losses
through spoilage as the cold- Ms. Malewule: Yes, even if
HOW HAS LILONGWE DAIRY
room is nearby. I die today my sons and
SUPPORTED YOU OVER THE
daughters will proceed with
PAST 2-3 YEARS?
this enterprise as it is lucrative.

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Partners

+265 (0) 1-872-961 info@micf.mw www.micf.mw @micf_Malawi

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