Contract Farming Export Agriculture Facility ConFarm

Provides up to 70% of the project cost

ConFarm Introduction

ConFarm is a financing facility tailored for agribusinesses and exporters working with smallholder farmers under formal contract farming arrangements. It covers up to 70% of total production costs, including input supplies, land preparation, harvesting, post-harvest handling, and advisory support.

The facility also provides loans to farmers engaged in large-scale commercial farming for the procurement of inputs, production infrastructure, and equipment or machinery. It supports financing for working capital, project preparation, and essential production tools- ensuring timely delivery of export-quality crops and strengthening agricultural value chains.

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Key Requirements

To access EDF services under this product, applicants must meet the following general criteria:

  • Registered Entity: Applicant must be a legally registered business in Malawi.

  • Land Ownership or Availability: Proof of access to land for production or aggregation.

  • Feasibility Study Report: A comprehensive feasibility study demonstrating the viability of the contract farming model and export potential.

  • Owner’s Contribution: At least 30% of the total project cost must be provided by the applicant.

  • Collateral: Assets, guarantees, or stock to secure the financing.

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Eligibility & Application Requirements

Linking Farmers to Global Markets Through Innovative Financing and Partnerships

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Product Features

The product is structured to intervene in the agricultural sector in the following ways;

  • Procurement of farm machinery and implements to facilitate production, processing and transportation of farm produce.
  • Provide working capital finance to contract farmers for the purchase of agriculture inputs.
  • Support contract farmers in construction of production support infrastructure such as irrigation and warehousing infrastructure.
  • Provide Guarantees to commercial banks and input suppliers involved in providing loans/credit to contract farmers.
  • Provide Project Preparation and advisory services to take the projects to a bankable stage.

Partnerships

EDF liaises and partners with Contract Buyers, Farmer Organizations, Insurance Companies, Financial Institutions and Agro dealers that engage with farmers in the contract farming value chain.

Application Requirements

For loan product

  • Land holding size of not less than 100 ha with tittle deeds.
  • Owner’s contribution of at least 20% of the total project cost for Working capital and 30% for Capital Expenditure and Guarantee facility.
  • The farm should have sound management structures.
  • Confirmed export orders or contract for any targeted and approved commodities.
  • Promoters must have a track record of at least 3 years in farming.
  • Assets to be insured with comprehensive insurance cover.

Project Preparation Fund

  • Project should demonstrate high level of economic impact;
  • Promoters must have a track record in farming of at least 3 years
  • Promoters to contribute a minimum of 20% of the total cost of the proposed preparatory activity; and
  • Promoters should own a minimum of 200 ha of farm land;

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