How the Seed Loan Initiative is Transforming Farming Communities in Malawi

© Mutisunge Chiphini, Mtengo: Certified, drought-tolerant and pest-resistant seed distributed to smallholder farmers at Kasamba Cooperative in Mchinji, Malawi

Through the Maize Seed Loan Program, Mtengo Wakumunda supplied 1,200 kilograms of certified maize seed to over 600 smallholder farmers in Kasungu and Lilongwe. By removing upfront costs and ensuring access to quality seed, the program strengthens yields, food security and market participation - building a more resilient farming community in Malawi.

For many smallholder farmers in rural Malawi, the planting season begins with a difficult choice: buy expensive seed of uncertain quality from informal vendors or recycle grain from the previous harvest. With long distances to reliable agro-dealers and no access to credit, farmers often start the season already at a disadvantage - struggling to balance the cost of seed alongside labour, fertilizer and household needs.

This is the reality Mtengo Wakumunda set out to change through the Matching Grant Fund from Agri-Business Facility for Africa (ABF), co-funded by the European Union and the German Federal Ministry for Economic Cooperation and Development (BMZ) and implemented by GIZ.

By introducing a Maize Seed Loan Program, the initiative tackled one of the most critical barriers farmers face: access to affordable, certified maize seed at the right time. Instead of demanding upfront cash, the program offered seed on credit through trusted cooperative structures, allowing farmers to focus on planting rather than worrying about immediate costs.

Through partnerships with Kasamba Cooperative in Kasungu and DAFA Cooperative in Lilongwe, over 600 contracted smallholder farmers received a total of 1,200 kilograms of certified maize seed. Cooperative leaders played a central role - collecting seed on behalf of members, coordinating distribution, and committing to manage repayment after harvest. Farmers were given the flexibility to repay either in cash or with maize produce equivalent to the seed loan, easing financial pressure during the most demanding season of the year.

For farmers like those in Kasamba, the impact was immediate.

“The distance from here to reliable agro-dealers is very far,” explained Hopkins Phiri, Secretary of Kasamba Cooperative. “We fail to buy quality seed and usually recycle our harvests, which hinders crop yield. This initiative is very beneficial to our community.”

At DAFA Cooperative, the program brought both relief and renewed optimism.

“I am very happy to benefit from this seed program as an individual and also as a group,” said David Njaidi, DAFA Cooperative Chairperson. “We have so much to pay for during this period. A seed loan is very helpful- the money for seed is going to be used to buy fertilizer, and our yield will significantly be good.”

The results speak clearly. Certified seed was planted across approximately 48 hectares of farmland, setting the foundation for improved yields, stronger household food security and better market participation. Women and youth farmers that often face the greatest barriers to accessing quality inputs, made up a large share of beneficiaries, strengthening inclusion and resilience within the communities.

Beyond the numbers, the program created a sustainable model of support built on trust, cooperation and accountability. By ensuring access to certified seed on credit, the initiative not only improves productivity and household food security but also strengthens resilience, inclusion and hope for the future.

This success has shown that when quality inputs are paired with flexible financing and strong local institutions, farmers can break free from cycles of low productivity. The Maize Seed Loan Program is more than a seasonal intervention, it is a growing pathway toward sustainable agriculture, dignity and food security for rural farming communities in Malawi.