Are Financing Policies Sensitive to Food Systems Transformation in Malawi?

The country's financing systems have evolved over time, from financial repression (1964-1986) to financial reforms (1987-1993), followed by financial liberalization (1994-2007), and then liberalized financial sector I (2008-2012) and II (2012-2015), and finally, the period of financial systems transformation (2016 to date). The Government of Malawi has demonstrated efforts in investing in the agricultural sector and ensuring food and nutrition security for all citizens. The National Agricultural Investment Plan (FY2017/2018 - FY2022/2023) and the National Multi-Sector Nutrition policy (2018-2022) were launched to achieve these goals. However, there is still a need for multi-stakeholder collaborations for financing food systems transformation and resource mobilization. Financing food systems may be constrained by its complex nature and lack of accurate data on financing and expenditure reviews, which challenge investment tracking and resource mobilization. The study assessed the sensitivity of financing policies to food systems in Malawi and vice versa, identifying patterns emerging from current policies and financing issues in food systems. The study examined the inter-linkages of current financing systems policies to food systems and how current food systems policies are sensitive to the financing systems in Malawi. The selection of policy materials was based on the most recently formulated policies (from 2016 to date) and those closely associated with financing and food systems. The level of sensitivity was assessed using qualitative methods, with policies ranked as high (green), medium (yellow), and low (red). The results indicated that most of the financing systems policy documents have a low sensitivity to food systems transformation, with broad economic development objectives without a specific linkage to food systems. However, the Financial Sector Development Strategy II (2017-2021) was ranked medium because it highlighted the need for multi-stakeholder partnerships (MSPs) investments in food systems by addressing land tenure systems. The Draft Strategic Plan Commercial Agriculture Support Services (CASS) (2018-2023) was ranked high because the policy document incorporated financing for the components of food systems and aimed at enhancing small and medium-scale farmers' access to finance for agricultural commercialization. The majority of the food systems policies investigated indicated a high level of sensitivity to financing systems, with the only exception being land policies and reforms, which had a low sensitivity to financing systems. The study's findings suggest that there is a need for increased collaboration between the financial sector and other development sectors to achieve food security and nutrition outcomes.