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Tea continues to play a crucial role in Malawi’s economy.

Malawi’s tea industry has recorded a sharp decline in production during the third quarter of the year, yet paradoxically delivered significantly higher export earnings, according to the latest data released by the Reserve Bank of Malawi.

The contrasting performance highlights the resilience of one of the country’s most vital agricultural sectors despite ongoing production challenges.

Tea output fell dramatically to 4.7 million kilogrammes in the third quarter, down from 13.4 million kilogrammes in the previous quarter. This marks one of the lowest production levels seen in recent years and is also below the 5.5 million kilogrammes recorded during the same period last year. The decline has raised concerns among stakeholders, particularly given tea’s strategic importance to Malawi’s economy.

However, despite the sharp fall in output, export revenues from tea rose strongly. Earnings climbed to approximately K7 billion, more than double the K3.1 billion generated in the previous quarter. This growth was largely driven by higher volumes of tea sold on the international market, even though average prices were marginally lower.

Tea prices fell from about K1,195 per kilogramme in the previous quarter to around K1,838 per kilogramme during the quarter under review. While the price movement was unfavourable, increased sales volumes helped offset the decline, resulting in improved overall earnings.

Industry analysts note that the production slump aligns with Malawi’s well-established seasonal trends. Tea output typically peaks in the first quarter, eases during the second and third quarters, and begins to recover in the fourth quarter. Experts remain cautiously optimistic that production will rebound later in the year, provided weather conditions remain favourable.

Leaders within the tea sector say several initiatives are underway to boost long-term productivity and sustainability. These include enhanced support for smallholder farmers, improved dialogue between workers and tea companies, and the adoption of modern farming techniques alongside improved tea varieties.

Tea continues to play a crucial role in Malawi’s economy, contributing around eight percent of total foreign exchange earnings and accounting for 11 percent of national employment. The industry supports more than 60,000 jobs, both permanent and seasonal, underscoring its importance to livelihoods and economic stability.

Uganda's sugarcane price policy helps farmers.

The Ugandan government has stepped in to stabilise the sugarcane sector in Busoga, announcing a minimum price guarantee of Shs125,000 per tonne of sugarcane following growing complaints from out-growers over low farmgate prices.

The intervention is expected to ease tensions, protect farmer livelihoods and ensure stability in one of the country’s key agricultural value chains.

The decision was reached during a high-level meeting held on Friday, December 19, 2025, in Kampala. The meeting brought together officials from the Ministry of Trade, Industry and Cooperatives, the Sugar Industry Stakeholders Council, and six sugar milling companies operating in Busoga. It was chaired by the Minister of Trade, Industry and Cooperatives, Francis Mwebesa.

Among those in attendance were State Minister for Cooperatives and Bulamogi North West MP Frederick Ngobi Gume, Chairperson of the National Biofuels Committee and former minister Daudi Migereko, senior ministry officials, and representatives from Sugar Corporation of Uganda Limited (SCOUL), Kakira Sugar, GM Sugar, Kamuli Sugar, Mayuge Sugar and Bugiri Sugar.

Minister Mwebesa said the ministry had received numerous complaints from farmers who were earning as little as Shs90,000 per tonne, well below the pricing formula established under the Sugar Amendment Act 2025. “We have been receiving concerns from sugarcane out-growers regarding arbitrary low sugarcane prices, which we consider valid and directly impact farmer livelihoods, mill supply stability, and social and political stability in sugarcane-growing areas,” Mwebesa said.

The complaints mainly targeted GM Sugar, Kaliro Sugar, Bugiri Sugar and Kamuli Sugar, with farmers also protesting the continued five percent trash deduction, despite its earlier removal by the Sugar Industry Stakeholders Council. Mwebesa warned that poor returns, coupled with rising input and transport costs, threaten long-term production, investment and resilience within the sugar industry.

He further questioned the timing of the price cuts during an election period, stating, “Sugarcane pricing should be determined by the Sugar Industry Stakeholders Council, as clearly stipulated in the Sugar Amendment Act 2025.”

GM Sugar’s Henry Kata explained that pricing differences are influenced by varying production costs and urged the ministry to review the broader challenges affecting millers. In response, Minister Gume called on millers to raise prices for at least two months, noting, “This measure will help ensure social and political stability in Busoga during the current political period.”

The millers unanimously agreed to set a minimum price of Shs125,000 per tonne across Busoga for the next two months. The move is expected to restore confidence among farmers, stabilise incomes and support sustained growth in Uganda’s sugarcane sector.

 

The UAE’s AI for Development initiative is designed to support Africa’s economic.

Kenya is positioning itself as a potential major beneficiary of the United Arab Emirates’ newly launched US$1bn Artificial Intelligence (AI) for Development initiative, a strategic move that could significantly accelerate the country’s digital transformation agenda.

The initiative comes at a crucial moment as Kenya shifts from AI policy formulation to large-scale implementation across key economic and social sectors.

The fund was unveiled at the G20 Summit by Sheikh Khaled bin Mohamed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi, who noted that the programme reflects the UAE’s commitment to sustainable growth through global partnerships and innovative financing models targeting emerging economies.

For Nairobi, the timing could not be better. Kenya recently rolled out its National AI Strategy 2025–2030, a roadmap that places strong emphasis on international collaboration to unlock AI-driven growth. The strategy prioritises digital public infrastructure, agriculture, healthcare, climate resilience and education, while also aiming to establish Kenya as Africa’s leading hub for AI research, innovation and real-world application.

According to government estimates, fully implementing the strategy will require at least KSh152 billion (approximately US$1.19bn), underlining the need for external funding and strategic partnerships.

Speaking at the launch of the strategy in March, Cabinet Secretary for Information, Communications and the Digital Economy William Kabogo said its success would depend on adequate financing and robust regulatory frameworks.

“Kenyan policymakers and technology stakeholders are expected to explore avenues for collaboration as the country seeks to move from AI ambition to measurable impact. If leveraged effectively, the UAE-backed fund could provide Kenya with both capital and strategic partnerships needed to accelerate AI adoption, reinforcing its bid to become a continental leader in responsible and inclusive AI-driven development,” he said.

The UAE’s AI for Development initiative is designed to support Africa’s economic and social progress by strengthening digital infrastructure, modernising government services and boosting productivity. These goals closely align with Kenya’s national development priorities, particularly in agriculture and healthcare, where AI technologies are expected to improve efficiency, service delivery and long-term resilience.

The programme will be implemented by the Abu Dhabi Exports Office (ADEX) under the Abu Dhabi Fund for Development, in partnership with the UAE Foreign Aid Agency, further highlighting the scale and credibility of the initiative.

Nasarawa launches NASACCO gold rice.

Nasarawa State has officially commenced production of “NASACCO Gold Rice” through the Nasarawa State Agro Commodity Company (NASACCO), a move aimed at strengthening food security and promoting agricultural value addition in the region.

Governor Abdullahi Sule commissioned the initiative during an event in Lafia on Tuesday, emphasising its potential to enhance both state and national food stability.

The initiative is a collaborative effort with Silvex International, a leading rice-processing company in Nigeria. Governor Sule explained that Silvex has sourced rice paddy from state-owned farms located in Jangwa and Agwatashi communities within the Awe and Obi Local Government Areas. The harvested rice will be processed and branded as “NASACCO Gold Rice,” providing a distinctive, high-quality product for consumers.

“This will boost food security, attract investment, and implement strategies for sustainable agriculture,” Governor Sule stated, highlighting the broader economic and agricultural benefits of the programme. He also noted that the initiative aligns with the federal government’s Renewed Hope policy on agriculture, which promotes private sector participation, value addition, and inclusive growth.

Governor Sule further revealed that the NASACCO Gold Rice would be sold to the public at a 10 percent discount off the current market price for 50 kilograms, encouraging Nigerians to support the locally produced brand. He described the rice as “one of the best in the market,” urging citizens to patronise the product.

The governor expressed gratitude to Silvex International for partnering with the state to advance the project, noting that such collaborations are central to attracting private sector investment and boosting the local economy.

In his remarks, the Minister of Agriculture and Food Security, Abubakar Kyari, represented by Ibrahim Alkali, a director in the ministry, commended the initiative for its potential to promote economic growth, food security, and private sector involvement in the agricultural value chain.

The NASACCO Gold Rice project marks a significant milestone for Nasarawa State, positioning it as a model for sustainable rice production, agricultural innovation, and investment-friendly policies in Nigeria’s agri-food sector.

FAO, Lagos boost red meat and coconut investment.

The Food and Agriculture Organisation (FAO) of the United Nations has partnered with the Lagos State Ministry of Agriculture and Food Systems to drive strategic investment in Nigeria’s red meat and coconut value chains. This collaboration aims to strengthen the state’s agri-food sector, unlock economic opportunities, and create sustainable jobs, particularly for the youth.

During a roundtable meeting in Lagos on Tuesday, Hussein Gadain, FAO’s representative in Nigeria and ECOWAS, emphasised the strategic importance of Lagos in advancing Nigeria’s food security agenda. Represented at the meeting by FAO programme officer Tofiq Braimah, he praised the Lagos Ministry of Agriculture and Food Systems for demonstrating “bold leadership and unwavering commitment to building a sustainable agri-food system.”

“These value chains include coconut, livestock, and feedlot systems to attract private-sector and multilateral investments,” he said. “By leveraging Lagos’ industrial potential and commercial networks, we aim to unlock new economic opportunities, create decent jobs, and empower the vibrant youth population. This approach positions Lagos to fully exploit AfCFTA opportunities, making it a model for agricultural transformation across Africa.”

Represented by Rasheed Macaulay, director of veterinary services, the Lagos State Ministry of Agriculture and Food Systems reiterated its readiness to drive investment and scale up initiatives that support sustainable agriculture. Permanent Secretary Mr Audu highlighted that FAO’s collaboration reflects a commitment to move beyond policy dialogue to practical, investment-driven solutions for food systems transformation.

The two-day roundtable focused on validating key proposals under the Lagos State Red Meat Initiative and the Coconut Value Chain Programme. These proposals are informed by comprehensive technical and economic analyses conducted through FAO’s Technical Cooperation Project, which included feasibility studies for a Lagos State Cattle Feedlot Farm Estate, and the FAO–UNIDO-supported Coconut Value Chain Programme.

Both programmes have produced detailed investment notes and financial models aimed at mobilising resources and attracting private-sector participation. By leveraging these insights, Lagos is positioned to enhance livestock productivity, optimise coconut production, and integrate value chains with broader industrial and commercial networks.

The FAO–Lagos partnership marks a significant step in sustainable agricultural development, positioning the state as a regional leader in food systems transformation, value chain modernisation, and youth empowerment, while fostering resilience and competitiveness within Africa’s evolving agri-food landscape.

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