The European Union has announced a EUR143 million investment package (about 287 billion kwacha), for Malawi targeting agriculture, energy, education, skills development and social protection.
The financing is part of the EU’s Annual Action Plan 2026 for Malawi and has been developed in partnership with the Malawi Government in support of Malawi Vision 2063, the Malawi Implementation Plan 1 and the EU-Malawi Multiannual Indicative Programme for 2021–2027.
Speaking at a news conference in Lilongwe, Minister of Finance, Economic Planning and Decentralisation Joseph Mwanamvekha said the package comprises three major investments: AgriCatalyst Malawi, the Malawi Energy Efficiency Enhancement Programme (ME3), and EYES of Malawi.
Mwanamvekha said AgriCatalyst Malawi will receive EUR35 million to support the transformation of Malawi’s agriculture sector from subsistence farming towards competitive, sustainable and climate-resilient agri-food systems.
He said the programme will focus on rice, soybean and coffee value chains, with support aimed at increasing productivity and commercialisation, improving access to technology, skills, finance and markets, and strengthening value addition and entrepreneurship.
The programme will also promote climate-resilient farming practices, strengthen seed systems and support smallholder farmers, women and agricultural micro, small and medium-sized enterprises.
The energy component, ME3, will receive EUR40 million from the EU, complemented by EUR85 million in financing from the European Investment Bank (EIB), bringing the total programme investment to EUR125 million.
The programme seeks to improve electricity generation, transmission, distribution and system control, while strengthening energy-sector institutions and creating a more conducive environment for investment.
The largest component, EYES of Malawi, will receive EUR68 million to expand opportunities in education, skills development and social protection.
The programme will support secondary education, Technical, Entrepreneurial and Vocational Education and Training (TEVET), school feeding and social protection programmes.
“This is historical, am saying that it is historical because despite the challenges facing the world, the European Union has continued to support Malawi in these key development sectors of Agriculture, energy, education, skills development and social protection. On behalf of Malawians and on behalf of president professor Arthur Peter Mutharika, I would like to appreciate the European Union, I would like to commended the EIB, the European Investment Bank for this huge amount of support”, said Mwanamvekha.
EU Ambassador Daniel Aristi Gaztelumendi said the package is aimed at supporting Malawi’s long-term economic transformation by promoting a productive economy, reliable and sustainable infrastructure, and an educated, skilled and empowered population.
He said the programme would also seek to address barriers faced by young people, particularly girls and young women, persons with disabilities and vulnerable households, in accessing education and skills development.
According to the EU, ME3 forms part of the Team Europe Green Growth Initiative for Malawi and is expected to support key economic sectors, including agriculture, manufacturing, mining and tourism.
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