There was drama in Parliament on Tuesday when Agriculture, Irrigation and Water Development Minister Roza Fatch Mbilizi named prominent figures as beneficiaries of the Mega Farms Programme and described the initiative as severely mismanaged.
She told lawmakers the programme had been plagued by irregularities, poor loan recovery and political interference, prompting enforcement action and a planned forensic audit.
Presenting a ministerial statement to the National Assembly, Mbilizi said the Mega Farms Programme, operationalised in 2023, was intended to support agricultural production through input facilitation, mechanisation, irrigation services and market linkages. However, she said the implementation had exposed serious weaknesses.
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“Let me thank you most sincerely for giving my Ministry this opportunity to share with Malawians updates about this very important but severely mismanaged initiative,” Mbilizi said.
She disclosed that over two growing seasons the programme’s total exposure reached K55.5 billion, excluding accrued interest. During the 2023/24 growing season, 239 farmers accessed inputs valued at K6.04 billion, while four projects obtained medium-term equipment loans worth K3.18 billion.
Of the K10.79 billion portfolio, only K3.48 billion has been repaid, leaving K7.27 billion outstanding. Loans were due by Dec. 31, 2024.
In the 2024/25 season, 952 farmers received inputs worth K48.9 billion despite the programme having only K14.8 billion at its disposal. According to the minister, only 107 farmers — 11% — fully settled their loans, while 688 beneficiaries, representing 72%, made no repayments at all.
“Out of the expected 88,000 metric tons only 8,318 metric tons of maize was delivered to ADMARC, NFRA and ACE. The overall collection rate stood at 19%. Most of the people who were given loans were not farmers but vendors who sold the inputs on the open market,” she said.
Among those named in Parliament were former Minister of Health Khumbize Kandodo Chiponda, former Minister of Homeland Security Ezekiel Ching’oma and Rudo Chakwera, wife of Nick Chakwera.
She said enforcement measures were now underway through the Malawi Agricultural and Industrial Investment Corporation, which administers the funds.
“MAIIC has to a great extent intensified a coordinated risk containment strategy to preserve value, accelerate recoveries, and protect the revolving integrity of the Megafarms portfolio. Unfortunately, this has not yielded much,” Mbilizi said.
She added that demand letters had been issued, defaulters reported to the Credit Reference Bureau and documents submitted to the Attorney General for legal action.
“Lastly, Mr. Speaker, Sir, my ministry will also undertake a forensic audit of the Mega Farms Program to establish the fraud and embezzlement practices,” she said.
Meanwhile, government has halted support to “small mega farms” in the 2025/26 growing season pending the audit and operational review. The ministry is now collaborating with institutions including Salima Sugar Company Limited, the Greenbelt Authority, Lilongwe University of Agriculture and Natural Resources, the Malawi Defence Force, the Malawi Prison Service and ILLOVO Sugar Company to boost maize production.
Despite the late engagement, the institutions have cultivated 2,216 hectares, with an expected yield of about 8,864 metric tons of maize.
Mbilizi reiterated government’s commitment to reforming the programme to restore transparency and accountability.