In recent years, Malawi has faced repeated challenges from extreme weather events, leading to widespread population displacement and loss of life. Climate change is intensifying these disasters, slowing development and deepening food insecurity. This year, El Niño brought further devastation, with drought in the south and flooding in the north severely affecting agricultural production. Nearly half of Malawi's expected harvest has been impacted, leaving many people who rely on farming unable to produce enough food.
In response to the widespread devastation, President Lazarus Chakwera declared a state of disaster in March 2024 in 23 of Malawi’s 28 districts. The following month the Department of Disaster Management Affairs issued an appeal for more than $446 million to address the immediate needs of Malawians facing food insecurity by the end of 2024.
However, relief funding is just a stop gap and if climate change means these events are the new norm, Malawi is in danger of becoming trapped in a cycle of disaster and relief. As international donors mobilise resources, the Tony Blair Institute for Global Change (TBI) has been looking for ways to support the government in laying the groundwork for long-term food security and resilience.
Irrigation: The Leading Solution
Malawi is heavily reliant on seasonal rain-fed farming, making it increasingly vulnerable to erratic weather patterns bringing unpredictable rainfall, prolonged droughts and intense floods. Irrigation is seen as a leading solution to the challenges posed by climate change to Malawi's agricultural sector, which supports the livelihoods of around 80 per cent of the population. This is because irrigation:
Increases crop yields and food security. Irrigation provides a more stable and predictable water supply that can extend the growing season, allowing for multiple crop cycles in a year. This can play a crucial role in mitigating the effects of climate-induced crop failures, improving food security and reducing the risk of famine, especially during droughts.
Diversifies crop production. With reliable irrigation, farmers can grow a variety of crops, including high-value cash crops such as fruits and vegetables, which need more water than seasonal rains can provide. This crop diversification can boost income and provide a buffer against climate-induced losses.
Serves as a building block for climate-smart agriculture and artificial intelligence. Irrigation provides a foundation for implementing climate-smart agricultural practices, such as the introduction of AI for precision farming and sustainable land management. By using AI-driven tools, farmers can better monitor soil conditions, predict weather patterns and optimise water usage, ensuring that irrigation systems are more efficient and responsive to environmental changes.
Reduces pressure on natural resources. By improving water-use efficiency, irrigation systems reduce the need to over-exploit rivers, lakes and groundwater sources during dry spells, protecting the ecosystem while sustaining agricultural productivity.
Lowering Electricity Charges for Farmers and Agri-Processors
With only 4 per cent of Malawi’s cropland currently irrigated, there is a critical need for both small- and large-scale irrigation schemes.
To address this, the government has created a National Irrigation Master Plan and Investment Framework, which seeks to irrigate 220,000 hectares by 2035. However, irrigation development is capital-intensive, and has largely relied on private-sector and donor funding. Major projects, such as the World Bank-funded irrigation system on the Shire River and solar-powered irrigation in Chikwawa supported by the United Nations World Food Programme, have been pivotal in moving the dial on irrigation coverage.
Yet even with irrigation infrastructure in place, high electricity costs can make it unaffordable to operate. To address this, TBI has been helping to reduce electricity costs for small- and medium-scale farmers and agri-processors. The idea to create a new agriculture electricity tariff emerged through our Private-Sector Labs, a platform for structured interface between the private and public sectors to identify challenges, solutions and maximise development impact. TBI led the development of the tariff; our work included designing the pricing structure, organising stakeholder meetings, engaging with decision-makers, and collaborating with the Presidential Delivery Unit and government partners to ensure the initiative’s successful implementation.
The new tariff, which came into effect in September 2023, addresses the high energy costs that have long burdened the sector. The previous tariff, the maximum demand tariff, imposed flat electricity fees based on farmers’ equipment capacity regardless of seasonal usage, making irrigation costly and only viable for large-scale production. The new tariff introduces a more flexible and cost-effective structure tailored to the agricultural sector’s needs.
For producers with a total power demand less than 400 kilovolt-amperes (kVA, a measure of the energy capacity needed), the tariff eliminates equipment-capacity charges entirely. For those exceeding this threshold, a 50 per cent reduction in capacity charges is applied. Additionally, the per-kilowatt-hour rate has been strategically set between domestic and industrial rates, ensuring affordability without sacrificing sustainability.
“A Cry From Our Farmers”
Mathews Lasteni, a rice farmer in Salima along the western shores of Lake Malawi, has long struggled with the high cost of irrigation. Previously, the cost of the electricity needed to pump water from the lake had forced him to leave part of his land uncultivated. However, the introduction of the agriculture tariff has changed his outlook and he now plans to irrigate the unused portion of his fields, which could double his production and increase his income.
David Yafeti, chief irrigation officer for the region, told TBI that farmers like Mathews Lasteni had been urging energy reform. “It has been a cry from our farmers for years,” he explained. “They wanted a fair electricity rate that would match the seasonal nature of their irrigation needs. During the rainy season, irrigation is barely used, yet farmers were still burdened with electricity bills of up to 7 million kwacha ($4,000) a month.”
Yafeti emphasised the long-term impact of the change, noting, “A special tariff for agriculture will not only alleviate immediate financial pressure but will also sustain food production for all of Malawi.”
PLAY
With TBI's leadership in driving energy reform, Malawi is making significant advances by prioritising expanded irrigation coverage. These efforts are paving the way for a more resilient agricultural sector and enhanced food security, empowering the country to reduce its dependency on aid and seasonal rains while fostering sustainable growth.