A new report has explored how decentralised renewable energy can transform agricultural value chains in Malawi. The report titled ‘Decentralised renewable energy for agriculture in Malawi’ is published by the International Renewable Energy Agency (IRENA), an intergovernmental organisation.
Malawi’s agricultural sector is critical to its economy, employing around 77 per cent of the population and accounting for 23 per cent of gross domestic product (GDP).
The majority of workers in agriculture are smallholder farmers, many of whom cultivate less than one hectare of land. Despite its importance, the sector faces significant challenges, including low productivity, limited mechanisation and vulnerability to climate change.
The agriculture sector is also hampered by limited access to reliable, modern energy solutions, which hinder productivity and quality improvements. Many rural communities still rely on traditional fuels.
Malawi has one of the lowest per capita energy consumption rates in sub-Saharan Africa, with only 18 per cent of the population having access to electricity.
Access to energy remains a critical challenge in Malawi, particularly in rural areas where limited access to reliable power significantly constrains agricultural productivity and overall economic development.
This energy deficit affects critical agricultural activities such as irrigation, processing and storage.
The adoption of decentralised renewable energy (DRE) solutions, such as solar-powered irrigation and biomass-based drying units, could revolutionise the sector by reducing energy costs, enhancing productivity, and promoting environmental sustainability, says the report.
This report assesses the potential for integrating decentralised renewable energy (DRE) solutions into Malawi's agricultural value chains, focusing on sectors like dairy, rice, aquaculture, legumes (groundnuts and soyabeans) and olericulture (tomatoes, onions, leafy green vegetables, green beans).
This analysis highlights critical stages – particularly production, storage and transport, where DRE solutions can significantly reduce post-harvest losses and improve productivity.
Prioritising solar-powered water pumps, cold storage and drying systems offers a path to sustainable and resilient olericulture value chains in Malawi.
The dairy sector is crucial for household income, especially in the Shire Highlands of Southern Malawi, with a notable untapped potential for pasteurised and processed milk.
Malawi’s dairy sector has the potential for considerable growth through the incorporation of DRE solutions.
The rice value chain in Malawi comprises production, post-harvest handling, processing, storage and distribution. Undertaking these tasks requires a lot of energy. Embracing DRE solutions can significantly boost efficiency while cutting losses after harvesting and enhancing the sustainability of small-scale rice farming practices.
DRE technologies also offer transformative potential in aquaculture. Energy is essential for heating, water circulation and hatchery operations. The adoption of DRE for pond irrigation and processing can enable year-round fish production and significantly increase yields.
The market potential for adding DRE solutions within the five value chains – olericulture, dairy, rice, legumes and aquaculture – reveals major openings for increasing production and sustainability.
Using solar-powered cold storage systems in markets and production hubs could reduce vegetable spoilage by over 30 per cent, leading to increased farmer incomes and improved food security.
The findings underscore the need for targeted investments, innovative financing models and policy support to fully realise the benefits of decentralised renewable energy (DRE) solutions and transform Malawi’s agricultural sector into a more productive, climate-resilient and economically sustainable system.
An estimated $85 million investment is required to integrate DRE solutions across five priority agricultural value chains in Malawi- olericulture ( $ 24 million), dairy ($ 22.88 million), rice (USD 32 million), legumes ($82.93 million) and aquaculture ($ 33.80 million).
Beyond increasing productivity, investment would generate employment in DRE installation and maintenance, strengthening local economies.
DRE solutions can further enhance climate resilience by reducing fossil fuel dependence, stabilising yields during droughts and improving supply chains through robust infrastructure.