EU gives Malawi K4.8 billion to boost sugar production

Malawi has received a boost of K4.8 billion from the European Union –EU towards enhancing the production of sugar by medium and small scale sugar farmers.

This is the EU annual Action Program for the 2011 accompanying measure for sugar protocol countries, which Malawi is a member.

It is also a third grant under the program which contributes to the increase in the participation of small holder sugar out grower farmers in the sugar industry.

Speaking after signing the agreement European Union Ambassador Alexander Baum said high investments costs, coupled with difficult credit and financial climate make it hard for medium and small scale farmers to raise capital investments into sugar production.

Minister of Finance Ken Lipenga halied the signed EU grant saying it has come at an optune time when the country is about to launch its national export strategy.

Lipenga added that increased sugar production will boost the country’s exports and earn the country the much needed forex.