The OPEC Fund for International Development (OPEC Fund) has entered into a loan agreement worth $20 million with the Republic of Malawi to fund Phase II of the Shire Valley Transformation Program (SVTP II).
In an official statement, the OPEC Fund indicated that this initiative aims to promote food security, alleviate poverty, and enhance the livelihoods of roughly 130,000 individuals residing in the Shire Valley, a vital agricultural area located in southern Malawi.
The overall cost of the project is estimated at $285 million, with additional financing coming from various sources, including the World Bank, the African Development Bank, private sector entities, and the Government of Malawi.
Commitment to sustainable development
OPEC Fund President Abdulhamid Alkhalifa said, “This program demonstrates the OPEC Fund’s commitment to fostering sustainable development in cooperation with our partner countries and international development partners. Moreover, by investing in resilient infrastructure and agricultural transformation, we are helping to secure food supplies and empower communities in one of Malawi’s most vulnerable regions.”
Infrastructure development and impact
This loan will specifically facilitate the construction of 50 kilometers of a primary irrigation canal and 126 kilometers of secondary canals. Once completed, this infrastructure will ensure dependable irrigation for 17,500 hectares of farmland, significantly diminishing farmers’ reliance on rainfall and driving conditions that will lead to increased crop yields for sugarcane, rice, sorghum, mangoes, and beans.
