The Export Development Fund (EDF) has encouraged businesses in the macadamia and mango value chains to explore the financing options it offers to support their operations. The call was made during a workshop organized by the Malawi Investment and Trade Centre (MITC) and the Malawi Value Chain (MVC) project for mango and macadamia value chain players.
Businesses in the macadamia and mango value chains often face challenges such as high upfront costs, long periods before generating revenue, and limited access to working capital. EDF’s investment specialist Zachariah Hara said, the Fund has innovative financing solutions that can help players in these two value chains access the capital they need to grow their businesses.
He mentioned products like the Export Packing Credit facility, which covers logistics and packaging costs for crops ready for export; the Contract Farming and Export Agriculture facility, which supports production activities to ensure a steady supply of quality produce; and Equity financing, which provides the much needed patient capital with investment done either through existing businesses or through formation of Special Purpose Vehicles (SPVs) with a clear exit plan and no majority shareholding by EDF.
“We know that running a business in the macadamia or mango sector is not easy especially because these value chains take time before earnings start. That’s why we’re here—to provide financing options that can help these businesses grow. Whether it’s covering the costs of getting their produce ready for export, supporting farming operations, or purchasing equipment, we want to make sure that these businesses have the resources they need to succeed on the international market,” said Hara.
Malawi’s mango and macadamia value chains hold significant potential to drive the country’s export diversification drive. With increasing global demand for these products, particularly in markets such as Europe, Asia, and the Middle East, the country is well-positioned to capitalize on these growing opportunities. The macadamia sector, for instance, is already gaining recognition for its high-quality nuts, while mangoes—both fresh and processed—offer opportunities for value addition through products like dried fruit, juices, and purees. By investing in these value chains, Malawi can reduce its reliance on traditional exports, create jobs, and generate foreign exchange.