Minister of Finance, Economic Planning and Development Goodall Gondwe has said government will channel the 4.8 billion yen (about K31.82 billion) grant from the Japanese government to the agriculture sector to boost production.
The grant will enable smallholder farmers to acquire equipment on loan.
In an interview after the signing ceremony in Lilongwe on Wednesday, Gondwe said: “As government, we are happy with the assistance we have received although there has been a slight decrease.
“This money will be channelled to the agricultural sector so that smallholder farmers can buy agricultural equipment.”
In his remarks, Japanese Ambassador Kae Yanagisawa said her government is happy with the way Malawi has used grants from Japan.
“We have had no challenges with Malawi and we hope that the beneficiaries will be selected in accordance with the government’s priority areas as stipulated in MDGS III [Malawi Growth and Development Strategy] to achieve meaningful results,” she said.