OPPORTUNITY
THE WARM HEART OF AFRICA Impact report 2021
What we set out to do
Affectionately called the ‘Warm Heart of Africa’ , Malawi is known for its friendly people, spectacular landscape and extensive lakes But despite its riches in nature and its people’s spirit, it is one of the poorest countries in the world
In 2021, we launched the project Strengthening Systems for Financial Inclusion in Malawi in partnership with Jersey Overseas Aid, which aimed to provide access to financial training and products to low-income smallholder farmers and rural entrepreneurs in four of Malawi’s districts with the highest levels of povertyMulanje, Zomba, Dedza and Nkhotakota
Now at the project’s conclusion, we are delighted to share how your contribution has helped thousands of smallholder farmers build sustainable and prosperous livelihoods, giving them a hand up to lift themselves out of poverty.
-2024
WHY MALAWI AND WHY RURAL COMMUNITIES?
80%
of Malawi’s population is dependent on agriculture.
With most of its population reliant on agriculture for their survival, it is a precarious livelihood given the increasing severe weather patterns in Malawi
Rural communities are also some of the poorest areas in Malawi and the most underserved by Financial Service Providers (FSPs)
IMPACT IN NUMBERS
26,244 people trained in finance
83% of which were women
Training included vision building, financial literacy and business management
30,000 family members benefitting
With the added income from farming and business activities, the lives of client’s families are also improving
1,620 women & youth mentored
93 mentors graduated our mentorship programme, helping provide training and long-term support within the community
6,000 loans dispersed
Four FSPs increased their outreach and provided tailored loans and savings to rural smallholder farmers
Key outcomes
1,549 VSLAs strengthened
Training helped Village Savings and Loans Associations improve their finances and management
75% reported greater confidence to participate in decision making and better relationships in their household in the last 3 years.
40% reported an increase household food security.
42% increased their income and yield.
144 FSAs better equipped
Farmer Support Agents were given smart phones and bicycles, meaning they could travel to clients and deliver vital training
1/3 over started non-farming ventures, adopted innovative agriculture practices and planted more diverse crops. Over half reported increased crop yields due to these changes.
77% are currently using mobile money
Overall, most respondents also reported being confident in using financial services.
Climate Challenges
Agricultural training in climate-smart practices, e g diversifying crops, use irrigation and plant droughtresistant seeds
Alerts on incoming weather and market information is shared with clients
Over the duration of this project, the participating clients faced significant weather-related challenges. In 2023, Malawi was hit by one of the worst Tropical Cyclones in the Southern Hemisphere, Cyclone Freddy Over 1,000 of our clients were directly affected by the Cyclone. Many lost their crops and livestock, and some lost their homes
Malawi is increasingly experiencing severe weather events, particularly drought and floods. As a result, some clients have lost their income and have been unable to repay their loans
The frequent severe weather events continue to have a detrimental effect on our clients and will take time for them to recover Here's how we have supported and continue to support them, so that they can better face these challenges:
Encouraging them to invest in other income-generating activities and assets (e g livestock) giving them an alternative source of income
Encouraging clients to save in case of future needs or emergencies
THANK YOU FOR CREATING LASTING CHANGE
The project has helped improve the lives of the clients and will leave long-term change within the communities it served The need for financial services, especially in rural communities, remains acute and we will need to continue to reach out and give a hand up to those living in poverty
We want to express our sincere thanks to you for your support of this project Your impact goes beyond the farmers we have directly worked with It also reaches their families and communities Their children can now attend school, they are eating more and better, and they can access
adequate healthcare Communities are growing their income and learning from one another A community spirit is being fostered
Our future aim is to strengthen FSPs and VSLAs to serve tens of thousands more smallholder farmers and rural entrepreneurs in Malawi We hope that this project has inspired and invigorated that vision
Scan here to read the in-detail project report.
“Thank you for supporting this project You have helped create lasting change to the lives, families and communities involved in this project ”
Lydia Baffour Awuah Director of International Programmes, OIUK
Meet Dorka
Dorka has high aspirations for her children. But when we met her, she was struggling to provide for them and pay their school fees.
At the age of 13, Dorka left school and started farming, which remains her livelihood today She also runs a small business recycling with her husband On her farm, she grows sweet potatoes, maize and fruit trees, some is for consumption and some to sell on
When Cyclone Freddy hit Malawi in February 2023, everything was washed away. All of Dorka’s hard work and her livelihood was gone.
“This was painful to witness, as I had hoped for a good harvest. Now I am left with no returns for my labour. ”
Dorka joined a Village Savings and Loan Association and was introduced to Opportunity International Through the training we provided, she learnt how to better protect her farm from future climate shocks, improve her farming methods and invest in livestock
She was also taught how to invest in her business and earn additional income from other activities, like selling samosas. Dorka was also given a mentor through our mentorship programme who supported her.
A year on from when we first met Dorka, she has been able to expand her business and supplement her farm’s income. The additional income helps pay for her children's school fees.
“I am hoping for a better agricultural season, and I am working hard with my husband to boost my businesses so that my children can complete their studies ”
Dorka shows us how high the flood water was in her field during Cyclone Freddy