Malawi’s low growth in the agricultural sector is because of the Farm Input Subsidy Program (Fisp), says the World Bank. While the Bank has not directly halted the program, it has noted that fisp has not been effective since 2010.
Fisp targets poor small holder farmers, providing them with affordable fertiliser, but the World Bank noted that the farmers that purchase the fertiliser via the program are lesser than the targeted amount.
Minister of Finance, Economic Planning Development Goodall Gondwe commented that the World Bank has always misunderstood Fisp. He said it was World Bank that asked his ministry to remove subsidies on feritiliser in order to increase the maize price on the Market.