Malawi used to have a dynamic groundnut industry before aflatoxin became a major constraint to its ability to export globally. Groundnuts are an important source of income and food for its farmers with aflatoxin posing a risk to both their livelihoods and health. Aflatoxin is a systemic problem in the production of groundnuts in Malawi. As well as climatic challenges, there are issues around the growing, harvest and handling of the groundnuts by the smallholders resulting from a lack of knowledge and incentives.
AgDevCo’s investment, alongside a Dutch grant, will finance a new state-of-the-art factory and equipment to process and add value to locally grown groundnuts. Afri-Oils will establish links with farmers and deliver training on aflatoxin control to improve the quality and pricing of the groundnuts in the field. Combined with enhanced handling and processing techniques, the aim is to demonstrate that Malawi can meet international standards and through this revive the groundnut export industry, with significant income uplift potential for smallholders.