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Taiwan said on Wednesday it is buying 200 maize mills valued at about K220 million (US$2 million) for local communities as part of enhancing participation of the rural poor in micro, small and medium scale enterprises.
Shu Li-hui, first secretary at the Embassy of Taiwan in Malawi, said the project will also promote processing of agricultural commodities to add value to the products.
She said committees of 10 members including chairperson, treasurer and secretary in areas where the maize mills are located will have bank accounts and sitting MPs would act as advisors. Proceeds from the maize mill will be put into a revolving fund where members of the community would be able to access loans.
“The project will be monitored by submission of quarterly reports to the Taiwan Embassy by the communities. The members will be trained to ensure that they understand the running of the business,” she said, adding that the project will also promote accessibility of loans by the communities.
In a project justification paper, the Embassy of Taiwan said the Malawi Poverty Reduction Strategy, a policy framework for poverty reduction through rapid sustainable pro-poor economic growth and structural transformation, entails economic growth that involves and benefits the poor hence the maize mill project.
Li-hui said the project has the capacity to improve and diversify income base, increase production of food and cash crops, reduce distances travelled to maize mills so that farmers have more time to work in the fields.
She said the success of the pilot phase has led to the present scenario of 200 maize mills some of which will use diesel engines where there is no electricity. In 2002, the embassy of Taiwan commissioned three maize mills at Malosa in Machinga, Chileka in Lilongwe and Ekwaiweni in Mzimba.
The maize mills have been bought from the United Kingdom with other accessories purchased in South Africa.
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