VIENNA (WAM) 

The OPEC Fund for International Development (the OPEC Fund) has signed a $20 million loan agreement with the Republic of Malawi to finance Phase II of the Shire Valley Transformation Program (SVTP II).

In a statement, the OPEC Fund said that the programme is designed to enhance food security, reduce poverty and improve livelihoods for approximately 130,000 people in the Shire Valley, a key agricultural region in southern Malawi.

The total project cost is $285 million and other lenders include the World Bank, African Development Bank, private sector institutions and the Government of Malawi.

OPEC Fund President Abdulhamid Alkhalifa said, “This programme demonstrates the OPEC Fund’s commitment to fostering sustainable development in cooperation with our partner countries and international development partners. By investing in resilient infrastructure and agricultural transformation, we are helping to secure food supplies and empower communities in one of Malawi’s most vulnerable regions.”

The loan will specifically support the construction of 50 kilometres of one main irrigation canal and 126 kilometres of secondary canals. Upon completion, the infrastructure will provide reliable irrigation for 17,500 hectares of agricultural land, significantly reducing farmers’ dependence on rainfall and creating the conditions for higher crop yields for sugarcane, rice, sorghum, mangoes and beans.