Sustainable Agricultural Production Programme

Transcription

1 Supervision report Main report and appendices Mission Dates: May-2015 Document Date: 30-Jun 2015 Project No Report No: 3798-MW East and Southern Africa Division Programme Management Department

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3 Contents Abbreviations and acronyms iii A. Introduction 1 B. Overall assessment of programme implementation 1 C. Outputs and outcomes 2 D. SAPP s implementation progress 8 E. Fiduciary aspects 11 F. Sustainability 14 G. Other 15 H. Conclusion 15 i

4 Appendices Appendix 1: Summary of project status and ratings 17 Appendix 2: Updated logical framework: Progress against objectives, outcomes and outputs 21 Appendix 3: Summary of key actions to be taken within agreed timeframes 23 Appendix 4: Physical progress measured against AWP&B, including RIMS indicators, as of 31 March Appendix 5: Financial: Actual financial performance by financier; by component and disbursements by category 31 Appendix 6: Compliance with legal covenants: Status of implementation 33 Appendix 7: Knowledge management: Learning and Innovation 35 Appendix 8: Progress against previous mission recommendations January/February 2015 Aide Memoire 37 Appendix 9: Supervision mission schedule and persons met 39 Technical Annex 1: Enhancing the impact of on-farm adaptive research trials and demonstration sites 45 Technical Annex 2: Introduction of Knowledge, Attitude and Practice (KAP) methodology 51 Technical Annex 3: Financial management report 63 Technical Annex 4: Monitoring, evaluation and knowledge management 75 Technical Annex 5: Nutrition mainstreaming 79 ii

5 Abbreviations and acronyms ADD AEDC AEDO ASWAp AWPB CA CGIAR CIMMYT DAES DARS EMC EPA FAO GAPs GOM IFAP KAP LUANAR M&E MIWD MOFEPD PIM PM&E PPF RIMS RLEEP SAPP SHFS TCPT TLC Agricultural Development Division Agricultural Extension Development Coordinator Agricultural Extension Development Officer Agricultural Sector Wide Approach (formerly ADP) Annual Work Plan and Budget Conservation Agriculture Consultative Group on International Agricultural Research International Maize and Wheat Improvement Center Department of Agricultural Extension Services Department of Agricultural Research Services Executive Management Committee (of ASWAp) Extension Planning Area Food and Agricultural Organisation Good Agricultural Practices Government of Malawi Implementation Fast Track Action Plan Knowledge, Attitude and Practice Lilongwe University of Agriculture and Natural Resources Monitoring and Evaluation Ministry of Irrigation and Water Development Ministry of Finance, Economic Planning and Development Project/Programme Implementation Manual Planning, Monitoring and Evaluation Programme Preparatory Facility Results Impact Management System Rural Livelihoods and Economic Enhancement Programme Smallholder Food Security Transitional Programme Coordination Team Total LandCare iii

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7 A. Introduction 1 1. The Government of Malawi and the International Fund for Agricultural Development (IFAD) has carried out jointly the annual supervision of the (SAPP) in Malawi from May The objective of the supervision mission is to assess the overall performance of SAPP against its goal and development objective, its implementation progress by component against the targets, the adherence to the Programme s strategy and institutional performance; to review the fiduciary aspects, compliance with financing covenants and prospects of sustainability beyond SAPP s closing. The mission visited project sites in Nkhotakota, Balaka and Blantyre districts during 5 days and consulted with beneficiaries and stakeholders at all levels in Malawi. 2. The IFAD loan was approved on 13 December 2011 and was signed and entered into force on 24 January The Programme completion and closing dates are set at 31 March 2021 and 30 September 2021, respectively. However, the process of fulfilling the conditions for withdrawal of IFAD funds was protracted until IFAD could execute its first disbursement to the Programme in August 2013 for implementing the AWPB 2013/14. In other words, SAPP had lost about two years out of nine years for the implementation of its activities. Henceforth, in June 2014, the Government of Malawi and IFAD agreed to take bold corrective measures in the form of (i) an Implementation Fast Track Action Plan (IFAP) and (ii) install a Transitional Programme Coordination Team (TPCT) to address the main short comings and trigger a fast, second start-up. By now, SAPP is in its 4 th year of implementation with 5 years left until the completion and closing dates, set at 31 March 2021 and 30 September 2012, respectively. 3. SAPP s development objective is to achieve a viable and sustainable smallholder agricultural sector employing good agricultural practices (GAP). The Programme implementation is organised along two components which have the expected outcomes as follows: (component 1) Appropriate agricultural technologies / GAPs developed and (component 2) Widespread adoption of GAPs by farmers. The Programme implementation should be ensured through a dedicated Programme Management and Coordination. 4. IFAD co-funds SAPP with approximately USD 46 million equivalent, of which 50% will be provided as a loan at IFAD highly concessional conditions and terms and 50% as grant under IFAD s Debt Sustainability Framework (DSF). The Government of Malawi is committed to contribute USD 4.2 million equivalent to SAPP and the Programme target group are expected to contribute in kind an amount of approximately USD 1.2 million equivalent. 5. The IFAD team expresses its gratitude to the Ministry of Agriculture, Irrigation and Water Development (MOAIWD) and the Ministry of Finance, Economic Planning and Development (MOFEPD), its respective departments, the office staff at the Agricultural Development Division (ADD), districts and Extension Planning Area (EPAs), the Department of Agricultural Research Services (DARS), Total LandCare and the TPCT for their support and guidance during this mission. B. Overall assessment of programme implementation 6. The overall, cumulative implementation progress of SAPP since its start-up in 2012 remains unsatisfactory, although remarkable improvements were since June 2014 with the instalment of the TPCT, commencement of the IFAP and joining of the Total LandCare (TLC) all of which is rated moderately satisfactory for 2014/15. 1 Mission composition: Mr Thomas Rath (IFAD Country Programme Manager and Team Leader), Ms Wafaa El-Khoury (Deputy Team Leader and IFAD Agricultural Development Specialist), Ms Larissa Setaro (IFAD, Social Development Specialist), Mr Godfrey Wanjohi (Financial Management and Procurement Specialist), Mr Mohamed El-Ghazaly (M&E Specialist) and Ms Marian Amaka Odenigbo (IFAD Nutrition Specialist). 1

8 7. Annual Implementation Progress. Rated as moderately satisfactory. The financial progress of SAPP or utilisation rate stands at 54 % as of 31 March The overall physical progress stands at 57%. With another three months to go until the end of the financial year, it can be expected that both indicators will improve further. 8. Likelihood of achieving development objectives. Rated as moderately unsatisfactory. The overall disbursement of IFAD and Government funds stands at 11 % only, although the programme started officially the implementation 3 years ago. Similarly, the disbursement of the IFAD loan and grant funds stands at 17% as of 31 March 2015; for a programme in its 4 th year of implementation, 60% of disbursement should be expected. However, the programme coordination team expects that the disbursement will improve to about 25%, pending the payments for vehicles and equipment are completed and reimbursed by IFAD. Since the programme started actually implementation only 6 months back, it cannot be expected that the development objectives could be reached as per design. 9. Progress in addressing previous mission recommendations. Rated as satisfactory, since most of the agreed action of 2014 have been accomplished. Agreed action Responsibility Agreed date Complete the remaining procurement as per IFAP and in line with AWPB. TPCT 30 June 2015 Develop the next AWPB along agreed milestones and track regularly progress/constraints TPCT 30 June 2015 C. Outputs and outcomes 10. Component 1: Adaptive Research and Knowledge Management. Rated as moderately satisfactory. The physical progress for 2014/15 has been mixed with an average achievement rate averaging at about 50 %, with overachievements in many activities (e.g. procurement of basic seeds) and little progress in some. Given that three months are left, it can be assumed that SAPP will make some lead way towards the end of the financial year. 11. It has been difficult to assess this component properly using the progress report provided, due to many conflicting data and controversies between the text in the report and the table on physical progress against the AWPB and appraisal targets. There is a need for proper reporting from the grassroots level upwards through the various layers to SAPP headquarters. Responsible staff needs to be trained, coached and supervised on this important task, as wrong data lead to wrong investments. 12. The component 1 aims to generate Good Agricultural Practices (GAP) that suit best the agroecological conditions in Malawi and are developed with and adopted by Malawian smallholder farmers. An adadaptive research approach in partnership with national, regional and international research institutions has been proposed to refine current GAP technologies and techniques. The component has two sub components: a) Adaptive Research; and b) Knowledge Management and Communication. 13. Subcomponent 1.1 (Adaptive Research) aims at strengthening action research programmes to develop and refine GAPs packages adapted to various agro-ecological and socioeconomic contexts. The DARS leads the implementation mainly in the areas of research planning and management, capacity building for adaptive research including on-farm trials, on-farm research trials and soil fertility enhancement. 14. Research planning and management: DARS is commended for its co-ordination with departments such as Land Resources Conservation, Extension, and Crops Development. It advised DAES in the choice varieties to be used in demonstrations. A working group composed of key strategic partners in GAP research including DARS, CGIAR centres and LUANAR, developed a draft Adaptive Research Strategy , with DARS leading the process. The main themes for the 2

9 action research identified within the strategy are: 1) Germplasm research; 2) Biophysical research; 3) Socio-economic research; 4) Nutrition and postharvest research. The draft strategy also includes adaptive research workplans for and the performance results framework. 15. The draft strategy is currently under review by DARS. The consultation with DARS revealed that it envisages a broad partnership with all relevant CGIAR centres, national research and educational institutions for the implementation of the strategy building on the capacities of international research to further support national research capacities. IFAD endorses this approach. 16. The above mentioned draft Adaptive Research Strategy would benefit from clarifying its geographic area (e.g. SAPP districts or national scope) which it is supposed to cover. There is also a need for better consistency among the indicators at objectives, outcomes, and output levels, and for clear linkages among the various research themes. More integration of the research thematic areas is required to address the complexity of the challenges in the smallholder farming systems. Socioeconomic assessments of GAPs is critical and should underpin the bio-physical research to help understand the reasons for adoption by farmers. 17. On-farm research trials: During the reporting period, DARS defined, developed and distributed the on-farm research trial protocols that guided the implementation of the adaptive research trials for the 2014/15 cropping season. Sites for the planned on-farm trials were verified and farmers for the implementation of these trials were identified. A total of 441 on-farm trials out of 329 trials planned on GAP research were conducted, representing an achievement rate of 134% against the annual target of the AWPB 2014/ officers from ADDs, District and EPA staff were provided orientation sessions on their roles and responsibilities as desk officers for research to select lead farmers to host trials, supervise the farmers and take lead in data collection. The various inputs for these trials were procured and distributed to the farmers including seeds of maize, cowpea, beans, groundnuts, pigeon peas and soybeans as well as fertilizers, inoculants, pesticides and herbicides, as needed. 18. The farm trials were based on 15 research protocols in the following areas: evaluation of adaptation and farmers acceptance of new varieties of legumes (5 trials), agronomic studies including planning patterns and intercropping (7 trials), CA research on time of sowing and nitrogen use efficiency (2 trials), and postharvest handling technologies (1 trial). DARS in collaboration with the Department of Land Resources and Conservation led trials on soil fertility enhancement and started the establishment of a soil nutrient baseline on the trial fields. 19. Commendable efforts were observed to establish effective research trials on farmers fields, though the mission felt that the messages received by the farmers may sometimes be misleading. Accordingly, there is a need to 1) ensure that the trials are very carefully designed to deliver the right message in the right way; 2) provide further training to the officers implementing and monitoring the results on the various GAPs and the exact message that the trial is providing; 3) ensure that messages of the trials are not conflicting with other activities of SAPP, especially within the same area or communities (as observed for CA vs. ridging); 4) enhance learning process of farmers for better adoption through the trials through for example regulated visits and discussion, undertaking joint simple experiments I relation to the trial, etc.; 5) use the trials to enhance the M&E system through regular quality reporting of the evaluation of the trial by farmers, costs involved, numbers of farmers visiting the trials during field days (N.B. avoid double counting if one farmer visits the same trial twice). 20. Capacity building for adaptive research: During the reporting period, one officer from DARS has registered with LUANAR for MSc degree in horticulture and three officers from the ASWAP secretariat, DAES and DAPS attended a short training course on China-IFAD south to south cooperation in Maputo, Mozambique. It is important that the focus of the capacity building activities within component 1 and component 2 remains within the scope of and for the benefit of SAPP. As indicated in the 2014/15 AWPB, and recommended in the January 2015 Aide memoire, the MOAIWD should undertake as soon as possible a core functional analysis in order to develop an institutional master training plan. All capacity building activities within SAPP should fall within this master plan. Capacity building activities undertaken still do not seem focused within the SAPP objectives and there 3

10 is a need to ensure that they are aligned with the DARS capacity building master plan, and that they support the Adaptive Research Strategy that has been recently developed, and that they coordinate and complement capacity building activities of DAES within SAPP. Partnerships with international research centers (CGIAR-centres working in Malawi) and with national and international universities could be enhanced for that purpose. 21. Sub-component 1.2 (Knowledge Management and communication) aims to integrate knowledge management and communication in all aspects of SAPP so as to improve management processes and delivery of services. A total of 9 participants attended study regional study tour by visiting similar projects in Kenya and Uganda and shared experiences leading to development of a KM Strategy for SAPP. The identification of 9 desk officers in all the ADDs, districts and departments has been completed. The draft knowledge management and learning (KM&L) strategy has been developed and circulated for inputs. One officer from DAES attended a short course on learning route as part of knowledge management in Nairobi, Kenya, and 3 officers from each of DAES, DARS and the SAPP Coordination Unit attended a short course in the Philippines on co-creating knowledge with farmers- on participatory methodologies for extension and research with farmers. 22. The mission noted that very few regional study tours were completed out of those planned and no action has been reported on the status of the consultations with the universities such as LUNUAR regarding the curriculum review process to incorporate conservation agriculture as a subject, nor were there any developments in the establishment of a Community of Practice as foreseen in the AWPB 2014/15. Agreed action Responsibility Agreed date Revise the modality of implementation and demonstration protocols of the adaptive research trials to ensure: 1) that trials are carefully designed to deliver the right message in the right way; 2) sufficient training is provided to the officers implementing the trials on the various GAPs; 3) that messages of the trials are not conflicting with other messages or activities of SAPP, especially to what relates to CA and ridging; 4) that the learning process and adoption by farmers is enhanced through the trial; 5) that the trials contribute to the enhancement of the M&E system DARS 31 Aug 2015 Carry out a core functional analysis of all MOAIWD departments, prior to further capacity building programs MOAIWD 31 Dec Align the proposed capacity building activities for adaptive research with the existing institutional training plan of DARS DARS 31 Aug 2015 Revise the draft Adaptive Research Strategy to ensure better coherence in presentation and highlight the integration of various research themes (especially nutrition, postharvest, socio-economics and GAP). Integrate the M&E framework of the strategy within the SAPP M&E system DARS, SAPP 31 Aug Component 2 (Farmer Adoption of Good Agricultural Practices). Rated as moderately satisfactory. The physical progress for 2014/15 has been mixed with an average achievement rate averaging at about 60 %, with overachievements in many activities (e.g. training of lead farmers) and little progress in some. Given that three months are left, it can be assumed that SAPP will make some lead way towards the end of the financial year. 24. The activities of this component are implemented along two sub components namely (2.1) improved agriculture extension services and (2.2) access to key agriculture inputs. As per component 1, it has been difficult to assess this component properly using the progress report provided, due to many conflicting data and controversies between the text in the report and the table on physical progress against the AWPB and appraisal targets. There is a need for proper reporting from the grassroots level upwards through the various layers to SAPP headquarters. Responsible staff needs 4

11 to be trained, coached and supervised on this important tasks, as wrong data lead to wrong investments. 25. Sub Component 2.1 (Improved Agricultural Extension). The activities of this subcomponent aim to improve farmers capacity in agricultural production, enhance the capacity of farmer institutions to ensure ownership and sustainability of agricultural interventions. The implementation runs through a district based lead farmer networks, farmer field schools and farmer business schools. Moreover, in August 2014, SAPP entered into a Memorandum of Understanding (MoU) with the NGO Total Land Care (TLC) to support the promotion of Conservation Agriculture (CA) and related GAPs. TLC will work in close collaboration with DAES in 25 out of the 45 EPAs covered by SAPP. The intention is to speed up the implementation and make up for the time lost since the programme entered into force. 26. Farmer to Farmer Extension Network. SAPP implementation is firmly based on the network of lead farmers, established by DAES. SAPP supports DAES to enhance the lead farmers based extension approach including through lead farmer trainings, field days, review meetings and support in the establishment of model villages, the latter serving as learning centres. 27. During the current year of implementation, DAES conducted a training needs assessment for all extension staff in all the EPAs implementing SAPP, identified and provided a list of planned GAP to be used in the training of farmers on technology specific for each of the agro-ecological zones for each crop. 28. A total of 3,131 lead farmers, including those in TLC managed EPAs, have been trained, representing an achievement rate of 104% against the annual target of 3,030 farmers. Training included technologies such as maize planting, legume production, CA, agroforestry, compost and manure use, livestock management, as well as on gender mainstreaming and nutrition. Staff were oriented on harmonized demonstrations and 231 demonstration sites out of the 2,400 planned (10%) were mounted on harmonized demonstrations on improved maize and legume varieties and integrate good land management practices including CA, use of organic manure, agro-forestry, correct ridge and plant spacing, contour ridging and other practices. Related field days were conducted. 29. As in the case for component 1, the mission visited some very well managed demonstrations, while it was noted that the effectiveness of demonstrations could be improved. The design of demonstrations should aim at more clarity regarding the ultimate, intended core extension message that should be conveyed to farmers. It is important to avoid conflicting messages, ensuring that farmers understand the reason (the why ) behind the demonstrated activities and recommendations. Another important aspect is the record keeping of famers attending field days, as these are critical information for the M&E system of SAPP, earlier mentioned. 30. The mission commends the progressive integration of nutrition activities in programme as indicated on food displays and presence of nutrition information centers in model villages. The support for the adoption of GAPs and improved crop varieties through organised farmers groups is a useful platform for promoting dietary diversity and consumption of nutritious foods. The mission recommends to further enhance the capacities of the extension officers in the promotion of nutrition sensitive agriculture. 31. The mission also observed differences in the quality of the lead farmers selected. Some were highly observant and engaged, while others were relatively passive and seem to repeat the information received without any critical thinking. Since lead farmers are the backbone of the extension delivery system for MOAIWD and TLC, it is important to select only those and train them that they are able delivering quality information and support to fellow farmers. Accordingly, SAPP should execute an internal evaluation of the lead farmers programme including the selection of the candidate lead farmers, their performance, coaching and supervision identified under the programme (including TLC). The evaluation will need to assess the quality of knowledge, dedication and support of lead farmers to deliver messages to their fellow farmers for the promotion and adoption of GAPs. MOAIWD would take up remedial actions upon receipt of the evaluation results. 5

12 32. Farmers Field and Business Schools. A total of 66 Farmer Field Schools (FFS) were established against the annual target of 135, representing an achievement rate of 50 %. The FFS approach is still considered at a pilot stage and is expected to be scaled up with additional training of AEDOs. A total of 76 frontline staff were trained in the concept of Farmer Business Schools (FBSs) (53 men and 23 women) and 37 FBS were established. Farmer Business Schools (FBS) follow the model of farmer field schools while they focus on a business approach to farming. 33. It is encouraging to note that in those FFS visited by the mission, the participating farmers were active and enthusiastic and the facilitators from front-line extension seem to be extremely dedicated and willing to support the farmers. However, large differences in the quality of the FFS were observed, mainly due to a lack of a clear and appropriate curriculum. Since SAPP is still at an early stage of implementing the FFS approach, and realizing the good experience at the MOAIWD with similar projects/programmes related to FFS, a long term plan for FFS training should be developed that includes a training for master trainers, extension staff facilitators, and farmer facilitators, regular refresher courses. The curricula need to be adapted to the different regions in Malawi (this should follow the identified priority commodities ad GAPs recommended for the different areas). Technical support from FAO Malawi could be provided in the development of the training plan as well as in the initial training of facilitators and in curriculum development. 34. Support to DAES. SAPP addressed the need of transport and office equipment for extension staff and procured vehicles, motor cycles, bicycles, as well office furniture, computers and extension support equipment to extension services at all levels. 35. Training of technical staff. DAES conducted reportedly a training needs assessment for inservice training of staff and accordingly produced a comprehensive training plan. Six officers (4 male and 2 females) were nominated for a Bachelors Course and 15 others (12 male and 3 females) for a Diploma course. However, due to delayed assessment of their nomination, they will only be admitted to LUANAR in the next academic year. As indicated for the capacity building activities for adaptive research (refer to the recommendations in component 1), it is important that these training activities within this component should also be focused on supporting SAPP implementation and should preferably be coordinated with and complementing the Adaptive research capacity building activities. 36. Farmer Group Development. SAPP supports strengthening of the organizational and management capacity of farmer-based organizations and enhancing their sustainability. Some 238 officers (of which 50% are women) against total 376 persons planned in the AWPB were trained on group dynamics and market oriented farm planning and management, to be able to support farmers in building farmer organisations. During 2014/15, SAPP assisted in the formation of 15 farmer cooperatives against the annual target of 37, representing an achievement of 41% against the AWPB 2014/15. The establishment of robust, sustainable farmer groups including cooperatives would require intensive support to these groups by highly capable staff. This relatively low achievement in the formation of cooperatives questions the effectiveness of the training and other support provided. 37. Extension material and mass media. In the past year, the handbook on Good Agricultural Practices (GAPs) was prepared DAES presented the Lead Farmer Approach guidelines in February Various extension material were produced including: How to Conduct Successful Field Days, How to Conduct Successful Demonstrations, Implementation Guidelines for SAPP. A radio programme on SAPP is aired on MBC radio once per week and MoU with Zodiac and MBC media houses have been finalized. 38. Extension Programme Management work with TLC. The MOAIWD entered into a MoU with TLC in August 2014, aiming to support the farmer to farmer extension network with demonstrations and disseminations of GAP. TLC recruited 25 field coordinators, and M&E Officer and a Project Manager in all required positions before the start of the rains. It provided the quarterly report to SAPP as stipulated in the MoU at satisfactory quality. Field activities undertaken included sensitisation of farmers on CA, procurement of seeds to farmers leading the CA demonstrations and procurement of 25 motorcycles, and cell-phones to the field officers and 50 bicycles to community extension workers. A total of 1,494 lead farmers (1,149 men, 345 women) were engaged and a total of 29,870 farmers 6

13 (including approx. 50% females) have reportedly been reached through the demonstrations. Over 400 tons of legume seed were purchased and distributed to farmers as per the targeted quantities in the workplan for lead farmers and follow farmers. However, the adoption rate of CA by farmers and their requirements for adoption has not been recorded yet as it is too early, and hence this will be assessed in the coming year preferably through the introduced KAP surveys. (The late funding in November meant that most farmers had already prepared their land under their traditional practice, hence impacting actual implementation of the minimum tillage and soil cover components of CA). 39. TLC promoted the formation of 1494 Farmer Clubs which is on target i.e. 1,500, each of which shall have about 20 members. This limited outreach is attributed to the late start-up of TLC led activities with the signing of the MoU in August 2014 and provision of funds in November Moreover, the Field Coordinators received motorbikes only mid-way through the rainy season, which severely limited their mobility. It is encouraging to note that DAES, DARS, DCD and LRCD participated in joint supervision visits to TLC led activities. The mission commends this initiative which should be made preferably on a quarterly basis, to ensure quality, the alignment of extension messages to farmers and promote learning among TLC and DAES staff. TLC and DAES should agree on the reporting modalities to avoid miscommunications and errors in reporting results. 40. Sub Component 2.2: Access to Key Agricultural Inputs. This sub component aims at improving farmers access to seeds of improved legumes varieties and enhancing revenues of seed producers. Furthermore, SAPP is aiming at engaging with agro dealers and micro-finance institutions for improved access to farm inputs and finance. 41. Seed Multiplication and Distribution. Sensitization meetings were carried out in six program districts to create awareness on the legume seed multiplication activities with district and EPA staff and farmers. Interested farmers were identified and organised into 51 legume seed multiplication groups (against a target of 100). The number of farmers per group ranges from less than 15 to over 40 members. The 37 ADD and district staff who were trained as trainers, and in turn, they trained 476 frontline staff in seed multiplication (against the annual target of 864 staff; i.e. 55% achievement rate). Basic legume seeds were sourced from ICRISAT and CIAT at Chitedze research station and distributed to seed growers for multiplication. To ensure seed quality, two field inspections were carried out to assist appropriate field management by the seed producers. These inspections were undertaken by the Seed Services Unit (SSU) jointly with crop officers at the ADD management units. Department of Crops Development (DCD) has contracted a consultant to develop a Legume Seed Multiplication Strategy ( ). The challenges encountered within this component was the availability of basic seeds of required varieties, lack of knowledge related to market location and price of seeds. 42. It is recommended that DARS and DCD link up also with the CGIAR centers mandated for legumes (ICRISAT, IITA and CIAT) in support the national research stations to supply sufficient amounts of quality basic seeds of the required legume varieties. It is recommended further that SAPP supported seed production activities are linked to those private sector dealing seeds as early as possible. This will help (i) identify the needs of the market in terms of varieties to multiply (and hence the amount of basic seeds required); and (ii) to ensure that the private sector is ready to buy the seeds from the producer groups. The cost of the quality control and field inspection remains a problem and SAPP should start developing mechanisms early on to ensure that farmer groups are able to pay for related cost, and increasingly become sustainable and independent of programme support in this regard. 43. Engagement with Agro-dealers. During the current implementation period, one meeting (out of 7 planned) was conducted with relevant stakeholders to support the updating of the inventory of agro-dealers. One inventory containing 99 consulted agro-dealers was updated against a target of 186 potential agro-dealers. The programme reportedly has initiated the process of linking 11 (out of planned 299) seed multiplication groups with agro-dealers, mainly through the Seed Traders Association of Malawi (STAM). While this activity is still at its initial stages, SAPP needs to develop a vision and plan as to how to link up farmers with the agro-dealers and seed companies in a more 7

14 systematic way. This should be done as soon as possible to guide the activities in support of the producer groups but also to enhance the adoption of GAPs. The results of the currently introduced KAP survey (Knowledge, Attitude and Practice) could also support the development of such a strategy. Close collaboration with the national Legume Platform is recommended. 44. Post-harvest management. During the 2015 season, a joint IFAD/FAO grant together with an Irish-funded project on food loss assessments has trained and contracted LUANAR to assess food losses along the value chains of each of maize and groundnuts and within the SAPP (and RLEEP) target districts. Limited on postharvest losses was conducted during the past seasons but more activities are planned for the coming main harvesting and marketing seasons. 354 AEDOs, AVOs and AEDCs (300 men, 54 women) were trained on safe use of pesticides storage and aflatoxin management. This was followed by the training of 780 lead farmers (588 men and 192 women) in all SAPP districts. In addition, 28 staff from the ADDs and districts were also trained on small metallic silos installation and management, 89 farmers were trained on legume storage and 66 postharvestrelated demonstrations were mounted. While these achievements constitute a good start, they still fall short against the programme targets, and seem to be detached from other activities. As for the engagement with agro-dealer, it is recommended that a clear strategy for the postharvest management interventions be developed to clearly link these activities with others related to GAP, in support to seed producer groups, in working with the agro-dealers and microfinance institutions as well as in nutrition. 45. Engagement with microfinance institutions. SAPP contacted to the Microfinance service provider OIBM Bank who seem to have little interest as it has experienced high default rates with smallholders. SAPP is thinking of a new strategy to seek the assistance of qualified assistance sought for to start this activity on the right footing. SAPP may consider engaging an experienced service provider (NGO) to test a simple but effective approach such as the Village Savings Loan Group system and link them to a microfinance institution, once they are sufficiently mature. SAPP shall consult with RLEEP who has managed to link VSLA groups with OIBM. Similarly, TLC has engaged with OIBM and SAPP should review the experience made thus far. The mission recommends speeding up SAPP s engagement with the micro-finance institutions or alternatively the planned engagement with NGOs as credit is often a limiting factor for the adoption of GAPs by farmers or the sustainability of farmer groups established. Agreed action Responsibility Agreed date Ensure coherence in the data provided in the text with the M&E data in the progress reports. Mainstream MOAIWD and TLC activities within these reports (TLC to continue presenting separate reports to the TPCT 31 July 2015 MOAIWD for compilation and evaluation) Enhance the design and management of on-farm demonstrations (refer to the same recommendations in Component 1 for the Adaptive research demonstrations) DAES and TLC Immediately Conduct training on nutrition-sensitive agriculture for extension workers, AEDOs, nutrition officers Prepare a FFS training and rolling plan to include: training of Master trainers, extension facilitators, farmer facilitators, refresher courses, curricula development. Technical support could be sought from FAO Malawi Carry out an internal evaluation of lead farmers identified by the SAPP Develop a strategy to ensure that seed production activities are linked to the seed private sector TPCT/IFAD Nutrition adviser July/August 2015 DAES 31 Aug 2015 MOAIWD and TPCT 30 Sept. 15 DCD, SAPP 31 Aug 2015 D. SAPP s implementation progress 46. Programme Management Performance. The Programme management performance is rated moderately satisfactory given the important strides that SAPP has made in the past months in terms of SAPP s financial and physical progress. This could be contributed to the effectiveness of the TPCT 8

15 management and its close collaboration with appointed management team from MOAIWD staff and Desk officers at the Ministry, ADD and the District levels as well as the recruitment of justification officers to support the district cost centers. The MOAIWD management team is composed of a programme officer, a M&E officer, a procurement officer and an accountant. They have been working closely with the TPCT. It is noted that the MOIAWD team is still not dedicating their work fully to SAPP, which is critical requirement in view of the programmes need and current situation. Besides, IFAD shall be informed about the staff quality and CVs of appointed staff shall be provided to obtain a no objection. 47. MOAIWD together with the Ministry of Finance have undertaken an evaluation of the TPCT staff performance during the past months. The mission has not yet been informed of the outcome of this evaluation. However, it will be important for consider positively the continuation of TPCT staff beyond the current expiry dates of contracts, in order to secure and enhance the progress made most recently. 48. Despite the great efforts made by the TPCT, providing dedicated time to run the program, the full integration of the TPCT into MOAIWD s administration remains the main hindrance for a time bound and efficient day to day management of SAPP, especially in terms of decisions of financial management, planning and executing of daily programme work. Unless the management of SAPP obtains a designated authority, no progress can be expected to acceleration of the implementation. 49. Discussion with MOFEPD conclude that the Programme Management Unit of SAPP should (i) be staffed with highly qualified persons from within the ministerial cadre or the labour market, (ii) obtain full autonomy for the day to day work, while being closely related to the service delivery channels of MOAIWD; (iii) obtain a designated authority for the day to day to management of the programme; (iv) should directly report to the Permanent Secretary of MOAIWD; and (v) be supervised by a Programme Steering Committee composed of senior staff of the relevant Ministries under the chair of the MOFEPD. It is critical that MOAIWD and MOFEPD resolve the issue of installing the most effective and efficient SAPP coordination and management at the earliest time possible in order to send a strong signal of trust to IFAD and secure the continuation of IFAD funding in view of the precarious situation of the programme. 50. In view of the time lost since start up, a mid-term review should be considered by early 2016 aiming to adjust the design to the current needs and remaining implementation period in terms of scope, focus and targets. 51. Coherence between AWPB and Implementation. Rated as moderately satisfactory. The implementation progress is lacking behind the targets in the AWPB 2014/2015. As of 31 March 2015, the average implementation of physical outputs was 57 percent against the targets of the 2014/2015 AWPB. Budget execution stands at 54% and is expected to improve further in the last quarter of 2014/15. Disbursement against loan and grants during the same period stands at 17%. These achievements constitute an improvement as compared to 2013/14, but more needs to be done to catch up with the time lost. 52. Monitoring and Evaluation. Rated as moderately unsatisfactory. The Monitoring and Evaluation (M&E) system at the programme remains underdeveloped. SAPP has been focusing on output and activity monitoring while there is no distinct plan for outcome/impact assessments. Quarterly progress reports are prepared on a regular basis by the project based on the data received from each EPA. The data is consolidated at the district level where it is sent to the SPCU. The M&E officer consolidates those reports into one comprehensive report which sent to IFAD for review. 53. The quality of the progress reports is low. Although the reports are comprehensive, yet the figures and numbers presented are not consistent and contradictions are clear between the figures presented in the narrative section along with the progress tables. The programme need to revise the figures for the different indicators and make sure that the data is consistent. 54. Monitoring visits are conducted at different levels. At EPA level, bi weekly meetings are conducted by the Agriculture Extension Development Coordinators (AEDC) with the AEDOs. At district 9

16 level, the desk officer supervises both the AEDCs and AEDOs performances on quarterly basis and a report is sent to the ADD. At the ADD level, a quarterly supervision on the districts performance in conducted. The ADD then conducts a quarterly review meeting with districts and a report is submitted to the project. The programme conducts supervision visit on a quarterly basis to spot check on the performance of the AEDOs. Perceptions of farmers should be included in the M&E reports. 55. The RIMS report for the SAPP was submitted to IFAD on 27 March 2015 for review. Comments were sent to the programme for review. The M&E officer has addressed all IFAD s comments and revised RIMS report was sent to IFAD on 9 May The SAPP baseline survey was conducted during the period December January 2015 and report was submitted in May 2015 which covered a sample size of 1,800 households (900 intervention and 900 control). The baseline data covered the information needed for the different project indicators. The M&E officer should work on utilizing the dataset of the baseline for conducting further analysis. 57. SAPP conducted a workshop in Salima district to revise the project log frame prepared in November A revision of the log frame needs to be based on the baseline survey data. A revision of the logframe is planned for June The programme does track of beneficiaries who receive the project services, where the service providers are reporting only the number of those who participated in a specific activity, without submitting a list of participants to the programme management. The mission observed that the same beneficiary could be participating in the same activity more than once, in such case the same beneficiary would be counted more than once which leads clearly to overestimates in the total programme outreach. There is a need to develop a database for the programme target group that would allow for tracking each beneficiary and the activities s/he participates in. This database will allow for avoiding double counting. The database should include detailed information about each beneficiary. 59. Gender focus and Targeting. Rated as satisfactory. The programme M&E system is gender sensitive as it tracks on a regular basis the number of women participating in the different programme activities. The mission observed during the field visits the positive opinions of women supported in programme activities. As of 31 March 2015, women counted for 41% of total programme beneficiaries against the programme target of 30%. These are excellent results while a gender mainstreaming strategy would be required to uplift the rating. 60. Climate and environment focus. Rated as moderately satisfactory. By definition of its development goal, SAPP should generate positive impacts on both, environment and climate change, through the development of enhanced soil and water conservation technologies under component one. Component two would promote environmental and social management safe guards and monitoring to developed by each district to adhere to the different environmental issues in each district. The delay in concrete actions justifies the above rating which should improve in due course. 61. Poverty focus. Rated as moderately satisfactory. SAPP target group are defined as smallholder food security households (SHFS) who have the potential to be food secure but lack capacity to market any surplus of their produce. Field visits suggest a representative the participation of these farmers in the various SAPP activities. However, the current M&E system is not equipped to track and to provide data on how SAPP activities are target to poor and other types of rural households. The programme should develop a system that allows the classification and tracking of households along wealth and food security related indicators and based on this information, devise a targeting strategy on how the poorer strata of households will be reached, without crowding out smallscale commercial farmers who often take on the function of lead farmers in the villages. 62. Effectiveness of targeting approach. Rated as moderately unsatisfactory. The programme has not yet tracked or reported the proportion of beneficiaries by the various poverty/wealth categories as per design. The programme still needs to develop a targeting strategy taking into consideration the outcome of the recently completed baseline study. 10

17 63. Innovation and learning. Rated as moderately satisfactory. A Knowledge Management and Learning Strategy development has been initiated and a draft strategy was developed and circulating for further inputs. In addition, a new methodology called KAP (knowledge, attitude and practice) was introduced to SAPP by IFAD. It will assist for monitoring the adoption of GAPs to assist in improving ways of improving rates by farmers. A KAP survey will be conducted on annual basis as part of the annual M&E data collection. 64. Partnerships. Rated moderately satisfactory. The partnership with TLC has proven critical for the SAPP implementation of component 2. DARS has also established partnerships with international and national research and educational centers and public sister departments for the development of the adaptive research strategy. There is however, still a lot of scope for the programme to partner with the CGIAR-centers in areas such as support to GAP research and the related socio-economic and agro-ecological underpinning, support the staff diploma and degree capacity development, to access seeds of new legume varieties. Partnership could also be sought with the private sector in the marketing of legume seeds produced by SAPP farmer groups, with NGOs in social mobilization and support to the development of farmer organizations as well in developing Village Savings Loan Groups. Partnerships with LUANAR in postharvest loss assessments could also be considered. Agreed action Responsibility Agreed date Revise the mechanism for supervision visits to include TPCT M&E officer 30 June 2015 spot checks and meetings with beneficiaries Upgrade the M&E system TPCT M&E officer 30 Sept 2015 Implement the KAP survey on GAP TPCT M&E officer 31 July 2015 Devise a plan to capture programme outcomes TPCT M&E officer 30 June 2015 Revise the logframe TPCT M&E officer 30 June 2015 Extend partnerships in support of the SAPP implementation to include CGIAR-centres (adaptive research and capacity building) and NGOs (community mobilization and savings and credit groups) DARS, DAES, TPCT 31 Dec 2015 E. Fiduciary aspects 65. Financial Management. Overall overview: The financial management on the overall is rated moderately unsatisfactory. On the positive side the implementation has been speeded up in the last 6 months. The Financial management team forming part of the TPCT has improved the quality of the financial management including the easing up of the hitherto chronic slowness flow of funds to the implementing partners. The financial management team has also been positive in their efforts, particularly in putting to full use the TOMPRO accounting software with the data capture process having been substantially implemented. The completion of this task and reconciliation thereof is expected by 31 August The procurement function has improved and vehicles, motorcycles, and office equipment and computers have finally been acquired. 66. On the negative side, disbursement of funds still low. Although this has improved during the last seven months the level is SDR 3.94 million or 14% of the combined Loan and Grant funding of SDR 28.9 million. This compares unfavourably with the expected 51% disbursement level as at the end of the 4 th year of implementation. Although procurement has been accelerated, the financial commitments for vehicles, motorcycles and equipment falling under category 1, have exceeded funds available under that category by approximately USD 71,000 even after taking into account the 30% excess allowance as approved by IFAD. There is still uncertainty of continuation of current arrangement of the financial management team within the TPCT structure, whose sustainability is desperately critical for the consolidation of the good financial management gains that have been achieved. The gains made during the tenure of the TPCT have reduced the high risk level that had manifested itself in the project before the installation of the TPCT. The other weakness is failure in 11

18 certain cases to observe the laid down procedures in the process of payment of expenditures as observed in a number cases by the auditors during the audit of 2013/14 financial year. 67. Consequently, the following actions were agreed: a) GoM will implement the strong Mission s recommendation of continuation of the structure of the TPCT for another year while the long-term implementation result oriented arrangements are worked out and put in place. In this regard the contracts of the TPCT management staff should be renewed, on the basis of performance evaluation, as well as motivating and mentoring the counterpart staff. b) GoM and IFAD will find a solution to the financing of the funding gap of approximately USD 71,000 under category 1. c) The TPCT will complete the migration of the financial data into TOMPRO accounting software and reconcile the outputs to the 2013/14 audited accounts by 30 June For 2014/2015 financial year the posting will be completed by 31 August 2015, to ensure readiness for the statutory audit. d) All procedures as laid down in the Accounting manual as well as in the GoM manuals will be adhered to at all times in the processes of disbursement of funds through payments. 68. Financial Systems and internal Controls: The financial systems internal controls and checks have been put in place and are included in the Programme implementation manual. These are data capture and accounting, Financial Reporting, Cash flow, Auditing and Procurement. For data capture and accounting the project has acquired the TOMPRO accounting software which is in the process of being put into full use. The financial procedures are still in the draft form and have not been updated since project inception. It was agreed that the procedures will be updated annually to reflect implementation changes and improved financial monitoring and reporting templates. 69. Financial Management Capacity and Reporting: The capacity of the financial controller under TPCT is enhanced with counterpart accountants at the Ministry s headquarters and in the programme districts. Computers and other equipment as well as the critical TOMPRO accounting software have been acquired. The key staffs have been trained in IFAD financial management procedures through the IFAD e-learning. The financial reporting require improvement in terms of quarterly statements which should include Financial budget performance against actual by activities, Loan utilisation statements, Cash flow performance and status, and statements of receipts and uses of funds. It was agreed that quarterly financial statements will be prepared and submitted to GoM and IFAD as part of physical and financial Progress report. 70. Review of the 2014/2015 AWPB performance: The Mission reviewed actual performance for 10 months period to 30 April 2015 against the revised budget for 2014/2015. The overall performance is 54% and the mission commends the PTCT for this improved performance as compared with past. 71. Review of the Designated Account and the Operational accounts: The review indicates that DA allocation of USD 1.5 million is fairly accounted for as at 31 March As of this date, the combined cash position in the SPA and other programme accounts amounted to USD 591,994. Included in the reconciliation is WA 13 for USD 335,323 pending payment from IFAD and expenditure pending WA preparation and submission of USD 329,274. Another outstanding is an amount of USD 18,367 being the VAT payments made from the special account and claimable from the MRA. The other item is bank charges amounting to USD 25,032 claimable from the bankers of the District accounts. It was agreed that the VAT and bank charges will be followed up for payment by 30 June Disbursement. IFAD Loan and Grant Disbursement. The disbursement of IFAD Loan and Grants stands at 17% and is rated as unsatisfactory, given that in its 4 th year since effectiveness the disbursement is supposed to be at 51%. The combined IFAD Loan and Grant disbursement to 30 April 2015 is SDR 3.94 million or USD 5.82 million representing 14% of the combined Loan and Grant allocation of SDR 28.9 Million, including the Initial Deposit of USD 1.3 million. This status has been 12

19 reconciled to the IFAD statements. However, the loan utilization, excluding the Initial Deposit is SDR 3.09 million, or USD 4.5 million, and represents utilization level of 11%. The mission has gone further to factor in WA 9-14 all totalling to USD 2.39 million or SDR 1.7 million equivalents, at the current exchange rates. Consequently, the projected utilization is estimated at SDR 4.8 million or 17% of the loan and grant leaving a balance of SDR 24.1 million or approximately USD 33.9 million at the current exchange rates. 73. IFAD Project Preparatory Facility The total disbursement for this facility was USD 600,000, of which USD 292, has been justified leaving a balance of USD 307, unutilised. The closure date of the grant was 30 September 2014 and has since passed and the Grant requires to be closed. The remittance of the unutilised amount of USD 307, has been submitted to the MOFEPD for processing and finalisation. It was agreed that the remittance should be made no later than 30 June Counterpart funds. Rated as satisfactory. The Financing Agreement require the GoM to provide counterpart financial support of up to USD 4.2 million to cover taxes, duties, salaries and other supporting services as may be required from time to time during the implementation life of the programme. As at 31 March 2015 the total contribution made including payment of salaries taxes and rent valued at USD1.6 million or 38% of the allocation of USD4.2 million. The mission commends the GoM for this support. However, as of the date of the mission USD 18,367 in form of VAT is outstanding for collection from MRA. It was agreed that GoM will assist in speedy collection of the VAT amount. 75. Compliance with loan covenants. Rated as moderately satisfactory. The mission noted that not all programme staff have been assigned full-time to the programme as foreseen in the Financing Agreement. 76. Procurement. Procurement Plan. Rated as moderately satisfactory. The procurement plan document for 2014/15 with a total estimate of USD 8 million is fairly prepared with the requisite milestones spelt out. The key goods items included in the plan are 20 motor vehicles, desktop and laptops, furniture, motorcycles and bicycles, seeds and other planting materials with estimates of USD 4.4 million. The motor vehicles alone were estimated to cost USD 1.7 million. The services were planned to include the key Extension outsource contract with a combined total estimate of USD 3.6 million. However, the Plan had a defect of costs of motor vehicles, motorcycles, and office equipment being higher than the funds available in the expenditure category I by USD 71,000. The procurement plan was not also in agreement with the estimates in the AWPB nor harmonised with the funds available in the Loan and Grant Account. The mistake has been corrected now by reducing sharply the number of vehicles purchased. 77. Procurement Progress and Contract Management. Contracts for the Motor vehicles, Bicycles, Motor cycles and computers, and office furniture have been awarded with some of the relevant goods already supplied and others in the process of supply. Some of the goods already supplied have already been paid for. The total awarded value of these goods, all procured in the 2014/15 has been corrected to USD 1.7 million, net of taxes and duty and all fundable from IFAD funds of the Loan and Grant. A funding gap of USD 71,000 remained above the available funds of USD 1.63 million. As for the services contracts for USD 3.3 million have been awarded including the key Baseline survey and that for extension. The funding for these costs is available. It was agreed that the GoM takes over and resolve the financing gap of USD 71,000 resulting from the over procurement. 78. Strategic Way forward: Having more than exhausted the funds allocation for Motor vehicles, motor cycles, equipment, under category 1, procurement will now concentrate on the remaining services as planned in the Programme design. The TPCT should now evaluate the remaining services and make advance preparations including bids specifications and TORs as would be applicable. This will reduce the procurement lead time during the remaining period of implementation. 13

20 79. Audit. Rated as satisfactory. The statutory audit is up-to-date with the audit of 2013/14 having been carried out by the Auditor General of the Republic of Malawi. The auditor returned unqualified opinions on the 3 areas of SPA, Financial statements, and SoEs. The management letter review discloses lapses of failure to adhere to the internal control and laid down financial procedures. It was agreed that TPCT will ensure that all the management letter points will be followed up and corrective actions put in place. Agreed action Responsibility Agreed date Extend the tenure of the TPCT by one year, extend the PS MOAIWD 15 June 2015 contracts of the staff on the basis of performance evaluation Resolve the financing gap of USD 71,000 PS MOAIWD 31 July 2015 Complete migration of financial transactions data into FC/Accountant 31 Aug 2015 TOMPRO and reconcile accordingly Adhere to GoM financial procedures in the expenditure FC/ Accountant Ongoing. payments as per audit recommendation Update the financial and Accounting procedures FC/Accountant 30 Sept Prepare and submit to IFAD quarterly financial FC/Accountant 30 June statements Follow up for payment the VAT and bank charges FC/Accountant 31 July Remit to IFAD approximately USD 60,000 as the exchange loss arising out of the current balance of the Project Preparatory facility Grant TPCT/MOF/MOAIR 30 Sept 2015 F. Sustainability 80. It is too early at this stage to make an assessment of the potential sustainability of SAPP as it is effectively in its very early stages of implementation. However, based on the field visits, the following observations were made. 81. Institution building. Rated moderately satisfactory. The program is supporting several types of farmer groups and institutions, whether newly established or already existing. These have or will receive training in group building techniques. It is still early to assess the coherence or governance level of the groups to ensure sustainability and proper conduct. It is however, recommended that SAPP starts early on to support these farmer groups, associations and cooperatives in developing/ enhancing their governance, their linkage to the market and the private sector, and in developing their vision for obtaining economic sustainability. 82. Empowerment and social sustainability. Rated as moderately satisfactory. The lead farmer network and the Farmers Field School approach in technology delivery and the support provided to farmer groups and organizations is a good entry for farmer empowerment and social sustainability. It is critical that these approaches enable farmers to question current farming technology, try out new ones and evaluated those in order to select the best, in terms of yields, costs, returns and market potential. This has yet to take place. 83. Quality of beneficiary participation. Rated as moderately satisfactory. As per field observations, there seem to be a lot of differences between the sites as to the active involvement of the beneficiaries in the activities. An evaluation of the mechanism of delivery of the SAPP activities and messages, especially through the Lead Farmers and FFS approaches would be important to enhance the quality of the participation of beneficiaries and their adoption of GAP. 84. Responsiveness of service providers. Rated as moderately satisfactory. The program is planning to work with service providers in technology delivery and input delivery (seeds, fertilizers and phytosanitary products, and postharvest equipment, as well as financial institution). At this stage, the only concrete work with service provides is the contract with TLC for extension delivery of CA and GAP in support of the extension service. TLC is working closely with the farmer communities and its services will be evaluated by the MoAIWD. More participatory evaluations by the communities would be important. 14

21 85. Exit strategy. No rating yet, as it is still too early to work on an exit strategy of SAPP, as the implementation is still at its early stages. The full incorporation of SAPP within the ASWAp and the involvement of relevant departments and the entire echelon down to EPA levels, and the private sector should the way for a robust exit strategy and handover. 86. Potential for scaling-up. Rated as moderately satisfactory. The approach of Lead Farmer networks and FFS, if quality is ensured has a good potential to be scaled up as an approach to reach out to the remote areas where extension services have limited outreach. Still, the programme has yet to work out the required details in terms of documenting best practice, as well as the drivers, spaces and vision for scaling up. Agreed action Responsibility Agreed date Engage with local NGOs to support SAPP in institutional development of farmer groups DAES and TPCT 30 Sept G. Other 87. Impact on physical and financial assets. Rated as moderately unsatisfactory. The programme is still at a very early stage of implementation to be able to assess its impact on physical and financial assets. 88. Impact on food security. Rated as moderately satisfactory. The adoption of GAPs has started to increase productivity and diversification of crops towards a more resilient farming system. It will generate a substantial impact on food and nutritional security and dietary diversity among the target group promoting of balanced diets with more protein sources through the integration of legume in the cropping pattern. Conducting a survey on food Knowledge, Attitude and Practices (KAP) that compliments the baseline report would help in establishing a systematic approach with evident pathways linking SAPP interventions to progressive nutrition outcomes. 89. Impact on incomes. Rated as moderately satisfactory. The promotion of GAP has a good potential to increase yields in a sustainable way and thus, it leads to higher incomes. A new emphasis will be placed on linking farmers to remunerative markets. 90. Policy impact. N/A. The programme is still at a very early stage of implementation to be able to assess its impact on policy. Agreed action Responsibility Agreed date Conduct Food KAP survey TPCT / IFAD nutrition advisor 30 September Plan and budget for income/asset and thematic surveys to assess programme impacts TPCT 30 June 2015 H. Conclusion 91. The most critical issue to address by MOAIWD and MOFEPD is the installation of the most effective and efficient SAPP coordination and management unit at the earliest time possible. Only this will send a strong signal of trust to IFAD and may secure the continuation of IFAD funding in view of the precarious situation of SAPP. 92. The programme has made significant progress in its implementation in the past months, which will allow it to recuperate some of the three years lost already and get it out of the risk area eventually. The current progress is fragile and may falter if the required support by Government is not provided. 93. The recruitment of the TPCT and officers in support of the district cost centres, the appointment of the MOAIWD staff (counterpart) to support the TPCT, the focal points (desk officers) at the ADD and District levels and the contracting of TLC to support the implementation of component 2 have been very important for the recent and fragile progress. It will be of utmost importance to accelerate 15

22 and consolidate this momentum to ensure that SAPP continues to move towards its developmental objectives. 94. In order to achieve a widespread and long lasting adoption of GAPs, the quality of extension messages should be clear and well adapted to the local conditions, while providing farmers options to select the most suitable technology for their socio-economic conditions. In the same vein, with the climate change effect starting to become more apparent for Malawi, it will be important to endow farmers with options and knowledge on how to respond to these changes. Farmers field schools are among the best approaches to serve that purpose. 95. The long-term sustainability of adoption of GAP will be fostered if farmer have access to in and output market. Hence, SAPP should develop a strategy on the engagement of farmers with agrodealers and traders, seeds companies and so forth micro-finance organizations. 96. Government of Malawi and IFAD should consider to carry out a joint Mid Term Review in 2016 with the scope to re-focus the programme design and to adjust targets to the remaining implementation period, in view of idleness of the programme during of 3 years since its start. 97. The next supervision mission shall take place by November

23 Appendix 1: Summary of project status and ratings Appendix 1: Summary of project status and ratings Basic Facts Country Malawi Project ID Project Date of Update Supervising Inst. No. of Supervisions 4 Last Supervision 09-Jun-2015 IFAD No. of Implementation Support/Followup missions Last 26- Implementation May- Support/Followup 2015 mission 3 07-Sep Loan/DSF/Grant/ASAP , [ ] FI No Top-up Loan/DSF/Grant/ASAP FI No. Approval 13-Dec-2011 Total financing Agreement 24-Jan-2012 Effectiveness lag 1.4 IFAD Total USD million Disb. rate % Entry into force 24-Jan-2012 PAR value IFAD loan First disbursement 08-Aug-2013 DSF grant MTR Last amendment IFAD grant Original completion 31-Mar-2021 Last audit 14-Jan-2015 ASAP grant Current completion 31-Mar-2021 Domestic Total 5.46 Current closing 30-Sep-2021 National Govern No. of extensions 30-Sep-2021 Beneficiaries External Cofinancing Total Project Performance Ratings B.1 Fiduciary Aspects Last Current B.2 Project implementation progress Last Current 1. Quality of financial management Quality of project management Acceptable disbursement rate Performance of M&E Counterpart funds Coherence between AWPB & implementation Compliance with financing covenants Gender focus Compliance with procurement Poverty focus Quality and timeliness of audits Effectiveness of targeting approach Innovation and learning Climate and environment focus 4 4 B.3 Outputs and outcomes Last Current B.4 Sustainability Last Current 1. Component 1: Adaptive Research and Knowledge Management Institution building (organizations, etc.) Component 2: Farmer Adoption of GAPs Empowerment Component 3: Programme Management and Coordination B.5 Justification of ratings Quality of beneficiary participation Responsiveness of service providers Exit strategy (readiness and quality) 6. Potential for scaling up and replication

24 Appendix 1: Summary of project status and ratings SAPP has made significant progress in its implementation during the past months, which has allowed to recuperate some of the three years lost and to leave eventually the risk area in the future. The current progress is fragile and may falter if the required support by Government discontinues. The progress for Component 1 has been mixed with an average of about 50%, and overachievements in many activities. The research part has started with its trials at field and farmer levels. Co-ordination between the various field actors has been smooth. The national Ag research strategy has been prepared in draft and is under review. The performance of Component 2 has been mixed with achievement averaging at 60% by end of March 2015, and shows many overachievements. The outreach to farmers through the demonstration approach with lead farmers has been impressive in terms of numbers (3,100 farmers or 104% achievement against AWPB), while effectiveness in terms of adoption is still to be seen. TLC is fully integrated into the SAPP. Farmer Field Schools and Farmer Business Schools have been established, as a pilot still. Farmers seem to be enthusiastic about this approach. Access to key Ag inputs has started too, mainly in terms of access to seeds thru national and international research centres providing the basic seed to be multiplied by selected farmers. Involvement of the private sector/ag dealers is required to enhance access to high quality seeds, fertilizers and sprays. An FAO/IFAD grant has started to support the post-harvest works. In fact, FAO has been approached to support SAPP with technical expertise from its own country programme. SAPP good progress in the past months can be attributed to the effective work of the Transitional Project Coordination Team (TPCT) and its close collaboration with appointed management team from MOAIWD staff and Desk officers at the Ministry, ADD and the District levels as well as the recruitment of justification officers to support the district cost centers. The MOAIWD management team is composed of a programme officer, an M&E officer, a procurement officer and an accountant. They have been working closely with the TPCT. It is noted that the MOIAWD team is still not dedicating their work fully to SAPP, which is critical requirement in view of the programmes need and current situation. Overall Assessment and Risk Profile C.1 Physical/financial assets 3 3 C.2 Food security 3 4 C.3 Quality of natural asset improvement and climate resilience 4 4 C.4 Overall <b>implementation progress</b> (Sections B1 and B2) 2 4 Last Current Rationale for implementation progress rating The financial progress of SAPP against the AWPB stands at 54 % as of 31 March The overall physical progress stands at 57% against the AWPB. With another three months to go until the end of the financial year, it can be expected that both indicators will improve further. The IFAP Implementation Fast Track Plan (IFAP), as agreed in June 2014, been almost completed. The IFAD included also the recruitment of Total Land Care (TLC), a well performing service provider. Hence, a large part of the AWPB could be achieved, similar to a project being in year 1 of implementation. SAPP has basically started implementation in 2014, as it has been idle for about 3 years. C.5 Likelihood of achieving the development objectives (section B3 and B4) 2 3 Rationale for development objectives rating The overall disbursement of IFAD and Government funds stands at 11% only, although the programme started officially the implementation 3 years ago. Similarly, the disbursement of the IFAD loan and grant funds stands at 17% as of 31 March 2015; for a programme in its 4th year of implementation, 60% of disbursement should be expected. However, the programme coordination team expects that the disbursement will improve to about 25%, pending the payments for vehicles and equipment are completed and reimbursed by IFAD. Since the programme started actually implementation only 6 months back, it cannot be expected that the development objectives could be reached as per design. IFAD discussed the possibility of an MTR in 2016 in order to adjust the DOs to the remaining time and capacities to which GoM agreed. C.6 Risks Short description of major risks for each section and their impact on achievement of development objectives and sustainability Fiduciary aspects Project implementation progress Outputs and outcomes Sustainability On the positive side the implementation has been speeded up in the last 6 months. The Financial management team forming part of the TPCT has improved the quality of the financial management including the easing up of the hitherto chronic slowness flow of funds to the implementing partners. The financial management team has also been positive in their efforts, particularly in putting to full use the TOMPRO accounting software with the data capture process having been substantially implemented. The completion of this task and reconciliation thereof is expected by 31 August The financial procedures are still in the draft form and have not been updated since project inception. It was agreed that the procedures will be updated annually to reflect implementation changes and improved financial monitoring and reporting templates. The financial and physical progress have picked up (see above). The critical issue is to keep the TCPT in place as long as a highly skilled and dedicated team with (most importantly) designated authority is ready to take over. It is hoped that GoM will take action on this issue of programme management and coordination in an adequate way as discussed at the wrap up meeting. The outcomes and outputs have been acceptable but they are fragile and lack quality here and there. The next months will be decisive and need to show if the progress made can be consolidated and further accelerated. The program is supporting several types of farmer groups and institutions, whether newly established or already existing. These have or will receive training in group building techniques. It is still early to assess the coherence or governance level of the groups to ensure sustainability and proper conduct. It is however, recommended that SAPP starts early on to support these farmer groups, associations and cooperatives in developing/enhancing their governance, their linkage to the market and the private sector, and in developing their vision for obtaining economic sustainability. 18

25 Appendix 1: Summary of project status and ratings Proposed Follow-up Issue / Problem Recommended Action Timing Status Slow Pace of Programme Implementation Slow Pace of Programme Implementation Slow Pace of Programme Implementation Delay in Opening Holding Accounts at the District Level High Vacancy Rate at the Section Level Slow pace of implementation Programme coordination Implementation Put in place a delegation of authority framework to minimise delays on Programme activity implementation. Devise and institute an effective seed multiplication and distribution system. Streamline the flow of funds from the Headquarters to the different implementing agencies to ensure a timely provision of the requisite resources for effective activity implementation. Follow up with the Local Government Finance Committees to expedite the opening of the holding accounts so as to facilitate smooth implementation of activities at the districts. Recruit and train more lead-farmers to increase the leadfarmer/follower-farmer ratio from 1:60 to about 1:20. Next AWPB should have agreed milestones to react swiftly on shortfalls. Continuation of TCPT for one year and phasing in of a qualified PCu with designated authority. Enhance design of on-farm trials (Component 1) and demonstrations (Component 2). July 2014 December 2014 September 2014 August 2014 Ongoing 30 June June 2015 Immediately Implementation Implement KAP survey. 31 July 2015 M&E Upgrade M&E system. 30 September 2015 Nutrition sensitization Train extension officers on nutrition sensitive agriculture. 31 August 2015 Partly completed Started Started MOF will deal with Central Bank of Malawi Not addressed yet Additional observations 19

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27 Appendix 2: Updated logical framework: Progress against objectives, outcomes and outputs Appendix 2: Updated logical framework: Progress against objectives, outcomes and outputs Narrative Summary Key Performance Indicators Means of Verification Assumptions (A) / Risks (R) Goal: Contribute to reduction of poverty and improved food security among the rural population Development Objective: A viable and sustainable smallholder agricultural sector employing good agricultural practices (GAPs) Outcome 1: Appropriate agricultural technologies/gaps developed and understood by potential beneficiaries Outputs: 1.1 Action research programmes which develop/refine GAP packages adapted to various agro-ecological and socioeconomic contexts, and improved methods of disseminating such packages to rural communities. 1.2 Knowledge about GAPs effectively gathered, managed and communicated to smallholders. Prevalence rates for rural poverty in project districts decline by 20% Prevalence rates for food insecurity in project districts decline by 30% RIMS level 3 indicators: prevalence of child malnutrition and inventory of household assets Increase in household asset ownership in project area Level of project areas food/crop production increases by 10% Average maize yields in target group households increase from 1.3t/ha to 3.0 t/ha % of land planted to high value (non-maize) crops increased from 10% to 20%. At least 33% of target group farmers accessing crop inputs through commercial channels 20 % Increase in hectares of land are under GAPS % of farmers adopting recommended technologies Number of GAP Packages developed adapting conditions suitable for smallholders Results of action research programmes which demonstrate superior GAP packages suitable for smallholders Number of Research programmes Implemented Number of Trials and demonstrations mounted to disseminate the improved technologies Number of extension methods identified 3,250 lead farmers trained and providing extension services Regional knowledge centres on GAPs effectively networked Knowledge generated by programme widely 21 Household income and expenditure surveys RIMS impact survey questionnaire (baseline and final) Agricultural production and trade statistics Baseline and follow-up crop production and yield surveys in Programme areas Records of FISP and independent monitoring reports on Programme Programme reports Reports on trials and demonstrations Measurements of crop productivity and profitability Reports of regional knowledge networking activities Information dissemination materials produced and distributed Reports on other knowledge management activities (e.g. workshops) Surveys on awareness and acceptance of GAPs amongst farmers, extension workers and researchers Absence of external economic shocks GOM will be prepared to phase out subsidies once farmers are able to finance procurement of inputs themselves GAP packages suitable for adoption by target groups will be identified and accepted by potential beneficiaries Suitable partners to undertake action research programmes will be engaged Regional agricultural knowledge sharing networks will be effectively engaged Other partners will cooperate in the development of effective knowledge management systems

28 Appendix 2: Updated logical framework: Progress against objectives, outcomes and outputs Narrative Summary Key Performance Indicators Means of Verification Assumptions (A) / Risks (R) disseminated and understood by stakeholder Outcome 2: Widespread farmer adoption of GAPs leading to improved productivity and crop yields. At least 80,000 smallholders adopting GAPs in the Programme area 40% of farmers continue to apply GAPs after Programme support ended Baseline and follow-up surveys on agricultural practices in Programme areas Farmers will be willing and able to procure the necessary inputs to sustain use of GAPs after support ends Outputs: 2.1 Improved agricultural extension services accessible to target group households raising awareness and sensitising farmers about GAPs. 2.2 Target group has access to necessary inputs for sustained adoption of GAPs. At least 50% of target group households receiving extension services on GAPs 135,000 households adopting GAPs by Year 9 At least two thirds of farmers satisfied with extension services Records of extension service providers (Govt, NGO, private) Baseline and follow-up studies on adoption behaviour Baseline and follow-up surveys on households receiving services and level of satisfaction Extensions materials and training curricula An adequate number of suitably qualified extension service providers will be available Adequate research-extension linkages will be established and maintained It will be possible to engage suitable partners for seed multiplication and distribution, agro-dealer support and rural financial services Outcome 3: Programme efficiently and effectively integrated within the ASWAp framework ASWAp performance indicators (see ASWAp PIM) Quarterly and annual ASWAp progress reports IFAD supervision reports Programme will be implemented within the emerging ASWAp framework MoAIWD will provide adequate resources for efficient and effective management Outputs: 3.1 Programme management systems fully integrated within the ASWAp management system Assessments of the ASWAp Secretariat s effectiveness in facilitating Programme implementation ASWAp consolidated AWPBs ASWAp M&E reports Mid-Term Review and programme completion report Adequate resources allocated to Programme management, monitoring and evaluation in a timely fashion 22

29 Appendix 3: Summary of key actions to be taken within agreed timeframes Appendix 3: Summary of key actions to be taken within agreed timeframes Overall assessment Outputs and Outcomes Implementation progress Fiduciary aspects Agreed action Responsibility Agreed date Complete the remaining procurement as per IFAP and in line with AWPB TPCT 30 June 2015 Develop the next AWPB along agreed milestones TPCT 30 June 2015 Revise the modality of implementation and demonstration protocols of the adaptive research trials to ensure: DARS 31 Aug ) that trials are carefully designed to deliver the right message in the right way; 2) sufficient training is provided to the officers implementing the trials on the various GAPs; 3) that messages of the trials are not conflicting with other messages or activities of SAPP, especially to what relates to CA and ridging; 4) that the learning process and adoption by farmers is enhanced through the trial; 5) that the trials contribute to the enhancement of the M&E system Carry out a core functional analysis of all MOAIWD departments, prior to further capacity building programs MOAIWD 31 Dec Align the proposed capacity building activities for adaptive research with the existing institutional training plan of DARS 31 Aug 2015 DARS Revise the draft Adaptive Research Strategy to ensure better coherence in presentation and highlight DARS, SAPP 31 Aug 2015 the integration of various research themes (especially nutrition, postharvest, socio-economics and GAP). Integrate the M&E framework of the strategy within the SAPP M&E system Ensure coherence in the data provided in the text with the M&E data in the progress reports. Mainstream TPCT 31 July 2015 MOAIWD and TLC activities within these reports (TLC to continue presenting separate reports to the MOAIWD for compilation and evaluation) Enhance the design and management of on-farm demonstrations (refer to the same recommendations in DAES and TLC Immediately Component 1 for the Adaptive research demonstrations) Conduct training on nutrition-sensitive agriculture for extension workers, AEDOs, nutrition officers TPCT/IFAD Nutrition July/August 2015 adviser Prepare a FFS training and rolling plan to include: training of Master trainers, extension facilitators, farmer DAES 31 Aug 2015 facilitators, refresher courses, curricula development. Technical support could be sought from FAO Malawi. Carry out an internal evaluation of lead farmers identified by the SAPP MOAIWD and TPCT 30 Sept 2015 Develop a strategy to ensure that seed production activities are linked to the seed private sector DCD, SAPP 31 Aug 2015 Revise the mechanism for supervision visits to include spot checks and meetings with beneficiaries TPCT M&E officer 30 June 2015 Upgrade the M&E system TPCT M&E officer 30 Sept 2015 Implement the KAP survey on GAP TPCT M&E officer 31 July 2015 Devise a plan to capture programme outcomes TPCT M&E officer 30 June 2015 Revise the logframe TPCT M&E officer 30 June 2015 Extend partnerships in support of the SAPP implementation to include CGIAR-centres and NGOs DARS, DAES, TPCT 31 Dec Extend the tenure of the TPCT by one year, extend the contracts of the staff on the basis of performance PS 15 June 2015 evaluation Resolve the financing gap of USD 71,000 PS 31 July

30 Appendix 3: Summary of key actions to be taken within agreed timeframes Agreed action Responsibility Agreed date Complete migration of financial transactions data into TOMPRO and reconcile accordingly FC/Accountant 31 Aug 2015 Adhere to GoM financial procedures in the expenditure payments as per audit recommendation FC/ Accountant Ongoing Update the financial and Accounting procedures FC/Accountant 30 Sept 2015 Prepare and submit to IFAD quarterly financial statements FC/Accountant 30 June 2015 Follow up for payment of the VAT and bank charges FC/Accountant 31 July 2015 Remit to IFAD approximately USD 60,000 as the exchange loss arising out of the current balance of the Project TPCT/MOF/MOAIR 30 Sept 2015 Preparatory facility Grant Sustainability Engage with local NGOs to support SAPP in institutional development of farmer groups DAES and TPCT 30 Sept 2015 Others Conduct Food KAP survey TPCT/IFAD nutrition 30 Sept 2015 advisor Plan and budget for income/asset and thematic surveys to assess programme impacts TPCT 30 June

31 Appendix 4: Physical progress measured against AWP&B, including RIMS indicators Appendix 4: Physical progress measured against AWP&B, including RIMS indicators, as of 31 March 2015 PHYSICAL # UNIT CURRENT FINANCIAL YEAR ( ) CUMULATIVE ACTIVITY INDICATOR COMPONENT 1. Adaptive Research and Knowledge Management AWPB TARGET ACTUAL % of AWPB APPRAISAL TARGET ACTUAL % OF APPRAISAL Sub component 1.1 Adaptive research Output 1.1.1: Research Planning and Management Procure basic seeds Seeds Kgs % 10, % Preparation and review of trial protocol Reports Number % % Facilitate identification of desk officers in all No of plans % % Number organisations Output 1.1.2:Capacity Building for Adaptive Research Prepare Capacity Building Plans Reports Number % % Support Technical staff to pursue long term studies No of staff trained Number % % Conduct study tours No of Study tour Number 1 0 0% 7 0 0% Output 1.1.3: On farm trial programme Plan and implement Conservation agriculture on farm trials Identify farmers to participate on farm trials and orient on management of demonstration plots Identify farmers to participate on farm trials and orient on management of demonstration plots No. of farm trials No of farmers No of farmers Total Male Female % % % % % % Prepare and submit reports on farm trials No of reports submitted Number % % Monitor on farm trial performance No. of visits Number % % Evaluate impact on soil fertility improvement Agriculture productivity and soil erosion control No of reports submitted Number % % Supervise implementation of on farm trial plots No. of visits Number % % Sub-Component 1.2.: Knowledge Management Output Knowledge Harvesting, storage and Processing Develop Knowledge Management and No of reports Number % % 25

32 Appendix 4: Physical progress measured against AWP&B, including RIMS indicators PHYSICAL # UNIT CURRENT FINANCIAL YEAR ( ) CUMULATIVE ACTIVITY Communication Strategy INDICATOR AWPB TARGET ACTUAL % of AWPB APPRAISAL TARGET ACTUAL % OF APPRAISAL Disseminate the Knowledge Management and No of workshops 1 0 0% 7 0 0% Number Communication Strategy Conduct national study tours Number of participants Total % % Conduct national study tours Number of participants Male % % Conduct national study tours Number of participants Female 8 0 0% % Conduct regional study tours Number of participants Total % % Conduct regional study tours Number of participants Male % % Conduct regional study tours Number of participants Female % % Output Knowledge Sharing and Learning partnerships Conduct review meetings on KMCS No of workshops Number % % Conduct national and International study tour Number of participants Total % % Conduct national and International study tour Number of participants Male % % Conduct national and International study tour Number of participants Female % % Develop website No of websites Number 1 0 0% 1 0 0% Conduct community of practices for the identified Number of participants best practices COMPONENT 2: Farmer Adoption of Good Agriculture Practices Sub-component 2.1: Improved Agriculture Extension Output 2.1.1: Farmer to Farmer Extension Network Number 1 0 0% 7 0 0% Identify lead farmers Number of farmers Total 3, % 3, % Identify lead farmers Number of farmers Male 1, % 2, % Identify lead farmers Number of farmers Female 1, % % Training lead farmers on communication and Number of farmers 3, % 3, % Total facilitation skills Training lead farmers on communication and Number of farmers 1, % 2, % Male facilitation skills Training lead farmers on communication and Number of farmers Female 1, % % 26

33 Appendix 4: Physical progress measured against AWP&B, including RIMS indicators PHYSICAL # UNIT CURRENT FINANCIAL YEAR ( ) CUMULATIVE facilitation skills ACTIVITY INDICATOR AWPB TARGET ACTUAL % of AWPB APPRAISAL TARGET ACTUAL % OF APPRAISAL Training lead farmers on technology specifics Number of farmers Total 3, % 3, % Training lead farmers on technology specifics Number of farmers Male 1, % 2, % Training lead farmers on technology specifics Number of farmers Female 1, % % Training lead farmers in gender mainstreaming Number of farmers Total 3, % 3, % Training lead farmers in gender mainstreaming Number of farmers Male 1, % 2, % Training lead farmers in gender mainstreaming Number of farmers Female 1, % % Mount harmonised demonstration Plots Number of 2, % 2, % Number demonstration plots Conduct Field days Number of field days Number % 1, % Establish Farmer Field School (FFS) Number of FFS Number % % Train staff in FFS Number of farmers Total % 3, % Train staff in FFS Number of farmers Male % 2, % Train staff in FFS Number of farmers Female % % Farmer Business Schools (FBS) Number Number % % Output Extension Coordination Train staff in various identified knowledge in GAPs Number of Staff Total % % Train staff in various identified knowledge in GAPs Number of Staff Male % % Train staff in various identified knowledge in GAPs Number of Staff Female % % Output Provide DAES support at Headquarters Level Support for DAES backstopping activities Number of Visits Number % % Output Training for DAES staff Conduct in service Degree course Number of Staff Total % % Conduct in service Degree course Number of Staff Male % % Conduct in service Degree course Number of Staff Female 2 0 0% % Conduct in service Diploma course Number of Staff Total % % Conduct in service Diploma course Number of Staff Male % % 27

34 Appendix 4: Physical progress measured against AWP&B, including RIMS indicators PHYSICAL # UNIT CURRENT FINANCIAL YEAR ( ) CUMULATIVE AWPB TARGET ACTUAL % of AWPB APPRAISAL TARGET ACTUAL % OF APPRAISAL ACTIVITY INDICATOR Conduct in service Diploma course Number of Staff Female 3 0 0% 3 0 0% Output Farmer Group Development Train staff in Group Dynamics Number of Staff Total % % Train staff in Group Dynamics Number of Staff Male % % Train staff in Group Dynamics Number of Staff Female % % Train staff in market oriented farm planning and Number of Staff % % Total management Train staff in market oriented farm planning and Number of Staff % % Male management Train staff in market oriented farm planning and Number of Staff % % Female management Form Associations and Cooperatives Number formed Number % % Train farmers in Group Dynamics Number of Staff Total 6, % 46, % Train farmers in Group Dynamics Number of Staff Male 4, % 34, % Train farmers in Group Dynamics Number of Staff Female 2, % 16, % Output Extension Material and Mass media Produce and disseminate IEC messages Number of messages Number % 15, % Output Extension programme Management Supervise NGO activities Number of visits Number % % Sub Component 2.2 Seed Multiplication and Distribution Output Seed Multiplication and Distribution Conduct sensitization meetings in programme Number of meetings % % Number districts on legume seed multiplication Identify legume seed multiplication groups Number of groups Number % % Link seed multiplication group to seed companies Number of groups linked Number % % 28

35 Appendix 4: Physical progress measured against AWP&B, including RIMS indicators PHYSICAL # UNIT CURRENT FINANCIAL YEAR ( ) CUMULATIVE ACTIVITY In collaboration with seed companies and agrodealers, train staff in seed multiplication principles In collaboration with seed companies and agrodealers, train staff in seed multiplication principles In collaboration with seed companies and agrodealers, train staff in seed multiplication principles Output Engagement with Agro-dealers INDICATOR Number of staff trained Number of staff trained Number of staff trained Total Male Female AWPB TARGET ACTUAL % of AWPB APPRAISAL TARGET ACTUAL % OF APPRAISAL % 6, % % 3, % % 2, % Update inventory of agro-dealers in district Number of Agro-dealers Number % % Conduct consultative meetings with agro dealers Number of meetings Number % % Link seed multiplication groups to agro dealers Number of groups Number % % Output Post Harvest management Train farmers in post-harvest management Number of lead farmers Total % % Train farmers in post-harvest management Number of lead farmers Male % % Train farmers in post-harvest management Number of lead farmers Female % % Conduct demonstrations on safe use of storage Number of meetings pesticides, silos, and airtight cocoons for legume storage COMPONENT 3. Programme Coordination and Management Output 3.0.1: Coordination to ASWAP management costs Number % 2 0 0% Support Executive management Committee Number of lead farmers % % Number meetings Conduct Meetings of relevant TWGs Number of meetings Number % % Meetings for programme Technical Committee Number of meetings Number % % Output Programme Planning Monitoring and Evaluation Conduct Periodic Monitoring Number of visits Number % % Prepare Annual work plan and Budget Number of reports Number % % Orient Implementing Officers in RIMS and Reporting Number of workshops 1 0 0% 7 0 0% Number Formats Conduct and prepare Quarterly, semi-annual and Number of meetings Number % % 29

36 Appendix 4: Physical progress measured against AWP&B, including RIMS indicators PHYSICAL # UNIT CURRENT FINANCIAL YEAR ( ) CUMULATIVE ACTIVITY annual review meetings INDICATOR AWPB TARGET ACTUAL % of AWPB APPRAISAL TARGET ACTUAL % OF APPRAISAL Produce and Submit Quarterly, semi-annual and Number of reports % % Number Annual Progress reports Conduct Baseline study for level 3 RIM indicators Number of studies Number % % Output Programme Financial Management and Procurement Carry out periodic external and internal audit Audits Number % % Orient Accounting staff on IFAD financial procedures No of workshops Number % % Produce and Submit Quarterly financial and Financial Reports % % Number procurement reports Recruit Justification officers Number of meetings Number % % Conduct Routine spot Checks and field visits Number f visits Number % % Prepare Procurement Plan Number of reports Number % % Output ADD Level Support Conduct routine supervision Number of visits Number % % Conduct review and planning meetings Number of meetings Number % % Output Programme Workshops and Seminars Participate in International; Workshops, and Community of practice Number of workshops Number % % 30

37 Appendix 5: Financial: Actual financial performance by financier; by component and disbursements by category Appendix 5: Financial: Actual financial performance by financier; by component and disbursements by category Table 5A: Financial performance by financier Financier At Appraisal (USD 000) Disbursements (USD 000 ) Disbursement %age IFAD Loan % IFAD grant % PPF % GOM Counterpart funds % Beneficiaries % Total % Table 5B: Financial performance by financier by component (USD 000) IFAD LOAN IFAD GRANT PPF Government Beneficiaries Total Component Allocated Actual % Allocated Actual % Allocated Actual % Allocated Actual % Allocated Actual % Allocated Actual % 1.Adaptive Research & Knowledge Management % % % 2.Farmer Adoption of Good Agricultural Practices % % % % % 3.Programme Coordination % % % % Total % % % % % % 31

38 Appendix 5: Financial: Actual financial performance by financier; by component and disbursements by category Table 5C: IFAD loan disbursements (SDR, as at 14 April 2015) Category Original Allocation Disbursement up to WA 8 Pending Expenditure WAs 9-14 Projected Utilisation Projected Balance SDR'000 SDR'000 %age USD'000 SDR'000 SDR'000 SDR'000 % Projected Utilisation 1 Vehicles, Motorcycles and Equipment % % Technical Assistance, Trainings, Workshops and 2 Studies % (57) 107% 3A Support for Adaptive Research % % Support for Knowledge Management and 3B Communication % % 4A Support for improved Agriculture Extension % % 4B Support for Access to Key Agricultural Inputs % % 5A Salaries and Allowances 170-0% % 5B Incremental Operating Costs % % 99 Unallocated % % Sub-total % % 99Z Initial deposit Total % 32

39 Appendix 6: Compliance with legal covenants: Status of implementation Appendix 6: Compliance with legal covenants: Status of implementation Section Covenant Target/Action Due Date Compliance Status/Date Remarks Section 4.02 PCU to open and maintain Project Account (in the Reserve Bank of Malawi) Pre- Disbursement Complied Section 7.05 Procurement of goods, works and services carried out in accordance with the procedures laid down in Schedule 3 Continuous Complied-But for 2015 there was over procurement by USD 71,000 over and above available funds. Section 4.04 Insurance of vehicles, equipment and civil works financed from the loan proceeds to be consistent with sound commercial practice. Continuous Complied Section 4.05, section 9.03(b) Audit report submitted to IFAD. 31 December each year N/A Report for 2014/15 submitted on time. Section 4.06 Schedule 4, para 7 Progress reports to be submitted to IFAD on a quarterly basis. AWPB to be submitted to the Fund, for its review and comments Continuous 60 days before commencement of subsequent fiscal year Complied Complied Schedule 3, par 3(2) Schedule 4, para 8.03 (a) Schedule 4, para 16 MoAIWD will ensure that an adequate number of staff is assigned to the Programme implementation. Key staff shall consist of: an M&E Officer, a Knowledge Management and Communications Officer, a Procurement Officer(s) and two Accountants who would be assigned to the Programme immediately upon entry into effect of this Agreement. A Mid-Term Review (MTR) to be carried out jointly by the Borrower and IFAD. Project to be exempted from all import duties, excise taxes and value added tax (VAT) on investment expenditures Partially complied Staffs have not been committed on a full time basis. However, there are efforts to comply. Midpoint of Project Will be carried out in the year implementation period Continuous Complied Project was exempted but prefinanced taxes have not been refunded by GOM 33

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41 Appendix 7: Knowledge management: Learning and Innovation Appendix 7: Knowledge management: Learning and Innovation Knowledge, Attitude and Practice (KAP) survey was introduced into the M&E system of SAPP, which has an objective of assessing the understanding, perceptions, limits and actual translation into action of the extension message on Good Agricultural Practices promoted through SAPP. The KAP methodology has been introduced through a learning process involving desk officers from 6 six SAPP districts, TLC staff and M&E officers from the MoAIW totaling 26 people. The process involved a training on the KAP methodology and an introduction to the KAP tool, 3 days in the field conducting focus groups discussions that helped to refine the tool, finalization of the questionnaire, a pre-testing in Lilongwe East and finally an implementation plan for the survey administration was defined. The KAP survey is finalized and ready to be used in the annual M&E system of SAPP. Learning A Knowledge Management and Learning Strategy development has been initiated and a draft strategy was developed and circulated for further inputs. 35

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43 Appendix 8: Progress against previous mission recommendations January/February 2015 Aide Memoire Appendix 8: Progress against previous mission recommendations January/February 2015 Aide Memoire Action area Programme implementation Outputs and outcomes Agreed Action Send updated (1 March, 2015) progress report to IFAD Agreed date for action to be taken Whom Progress in completion of action 05/03/2015 TPCT, PSC, MOAIWD The Semi Annual progress report was sent, and IFAD requested to send updated progress report up to February, However due to our reporting schedule we are submitting up to March 2015 The IFAP was revised Complete the IFAP 30/03/2015 TPCT, PSC, MOAIWD Update and finalize the Programme 30/04/2015 TPCT, PSC The PIM was revised and is circulating for final comments from ASWAp Implementation Manual Extend contracts of all TPCT members by 30/03/2015 MOAIWD, The Ministry is handling the issue and contract assessments have been one year (up to 30th June, 2016) MOFED conducted Outline the establishment of a highly 28/02/2015 MOAIWD, The Ministry is handling the issue qualified, permanent Project Coordinator Unit PSC with a delegated authority for take-over by July 2016 Discontinue any action related to support the Immediately TPCT This was removed from the revised 2014/15 AWP&B at Mid-term review design of PRIDE Finalize the baseline /RIMS study 28/02/2015 TPCT The Baseline Survey was concluded and final report is circulating for vetting by study technical committee Establish a working group of key strategic same DARS, partners in GAP research CIMMYT This has been established and a proposal for partnership with CIMMYT. This has been disapproved by the Ministry where funds have to come from the Government Develop an GAP action research framework same same The Draft Adaptive research framework is done and draft is available Develop a research and action programme for enhancing nutrition in rural areas Similarly, develop a KM strategy and relevant identify partners Consolidate the above action plans into AWPB 2015/16 M&E of TLC activities to be aligned with SAPP log frame and integrated into the MIS of SAPP same same Done-The Nutrition research is integrated within the Adaptive Research Strategy same same Done-The situational Analysis on KM and draft KM strategy is done and awaiting comments from other partners same same All the above have been included in the AWP&B 2015/2016 which was approved by EMC on 28th April 2015 same same TLC Achievements are aligned within the districts reporting templates on progress and RIMS in 4 out of 7 districts. The remaining districts Blantyre, Balaka and Nkhotakota will integrate TLC reports from next quarter 37

44 Appendix 7: Knowledge management: Learning and Innovation Action area Fiduciary aspects Agreed Action Propose changing the Financing Agreement to move the Designated Account to a Commercial Bank acceptable to IFAD Request increasing the advance under the authorized allocation from USD 1.3 Million to USD 3.0 Million subject to implementing TOMPRO and ensuring appropriate staffing during data migration Analysis the core programed costs which were paid out of the PPF advance funding due to lack of liquidity and which can still be presented against the IFAD loan and DSF grant. Submit a withdrawal application according Refund the unjustified advance remaining on the PPF such that the grant may be closed Obtain or perform a formal capacity assessment of the office of the Auditor - General Follow up Malawi Revenue Authority for refund of pre-financed VAT from the loan resources Revised the procurement plan template and introduce an appropriate, easy to track coding of tender packages Agreed date for action to be taken Whom Progress in completion of action 30/02/2015 Financial Controller/Pro gramme Director/ Desk officer MOFED 30/02/2015 Financial Controller/Pro gramme Director/ Desk officer MOFED 28/02/2015 Programme Director 28/02/2015 Programme Director 28/02/2015 IFAD Finance Officer/ Programme Director 28/02/2015 Financial Controller/Pro gramme Director 28/02/2015 Procurement and contract specialist, TCPT A request was made to open a Foreign Currency Denominated Account (FCDA) with a commercial bank. The letter has been deployed to Ministry of Finance for their consideration. Request to be done in May 2015 after going live in TOMPRO An amount of MK45,000,000 has been justified for refund that we will be processed in May 2015 Refund to be processed from the current replenishment of funds in May, 2015 IFAD to handle this TPIN/ VAT registration has been given by MRA and now the process of requesting refund can be applied from MRA. This has been done. Reference Numbers on the Procurement Plan for 2014/15 & 2015/16 AWP&B will be those of Tender Documents and classified as items appear in the tender document. 38

45 Appendix 9: Supervision mission schedule and persons met Appendix 9: Supervision mission schedule and persons met 12 May 2015 Mission arrives in Lilongwe, Malawi; Meeting with RLEEP and SAPP team to plan mission field trip 13 May 2015 Courtesy call to Ministry of Finance, Economic Planning and Development (MoFEPD): meeting with Mr Nations Msowoya, Assistant Director Courtesy call to Ministry of Agriculture, Irrigation and Water Development (MoAIWD)- meeting with Mr Bright Kumwembe, Principal Secretary 2 Presentation of SAPP progress to the mission by TPCT team; session chaired by Mr Nelson Mataka, Head of ASWAp (list of attendance attached) 14 May 2015 Individual meetings with the staff of SAPP KAP survey tean: Training of MoAIWD extension staff in KAP survey (list of trainees attached) 15 May Field visit to Nkhotakota district Debriefing by DADO at Mtosa EPA (list of attendance attached) Field visits in Mwansambo EPA KAP survey team: focus group discussions Wrap up meeting with Nkhotakota team in Mwansambo EPA Return to Lilongwe 16 May Training of MoAIWD extension staff in KAP survey 17 May Afternoon, depart for Balaka district - 18 May Debriefing by DADO; Presentation of Machinga ADD progress report (list of attendance attached) Field visits to Mbazale, Mpilisi and Ulongwe EPAs KAP survey team: focus group discussions Wrap-up meeting with Balaka team Travel to Blantyre 19 May Debriefing by DADO; presentation of Blantyre District progress (list of attendance attached) Field visits to Chipande, Lunzu and Lirangwe EPAs KAP survey team: focus group discussions Wrap-up meeting with Blantyre team Overnight in Blantyre 20 May Travel back to Lilongwe Meet with the CPM 21 May Preparation of Aide Memoire KAP survey team: finalization of questionnaire based on focus groups Networking meetings: FAO and World Bank 22 May Preparation of the Aide Memoire KAP survey team: testing of questionnaires in Lilongwe district 23 May Preparation of Aide Memoire 24 May Preparation of Aide Memoire and submission to SAPP team for review 25 May Pre-wrap up meeting with the MoAIWD; all concerned departments to discuss the draft AM at the MoAIWD (list of attendance attached) Submit AM for review by MoAIWD 26 May Final wrap up meeting for SAPP and RLEEP at the MoFEPD (list of attendance attached) 39

46 Appendix 9: Supervision mission schedule and persons met IFAD Mission Meeting with SAPP Team presentation of progress, 13 May 2015 Name of Participant Post Cell/Tel Number NTW Mataka ASWap Head David Kamangira Senior Deputy Director (DARS) Stella Kankwamba Director, DAES Wafaa El Khoury Technical Advisor - Agronomy- w.elkhoury@ifad.org Co-Mission Leader Larissa Setaro IFAD-KAP Specialist l.setaro@ifad.org Alex Malembo Programme Coordinator (SAPP) malemboalex@yahoo.com Rex Baluwa Programme Officer (SAPP) rexbaluwa@yahoo.ca Sam Kainja Total Land Care - SAPP Manager skainja@yahoo.com Zwide Jere Total Land Care Managing zwidejere@hotmail.com Director Ishmael Munthali Procurement Specialist (SAPP) ishamaelmunthali@gmail.com Willie Kachaka M&E Specialist (SAPP) wkachaka@gmail.com Hendricks Mlendo Procurement Officer (SAPP) hendricksmlendo@gmail.com Precious Mbewe Accountant (SAPP) mbeweprecious@gmail.com Trent Bunderson Total Land Care Executive trentbunderson@yahoo.com Director Getrude Kambauwa CLRCO-LMT gkambauwa@gmail.com Kefasi Kamoyo Land Resource Officer kamokefa@yahoo.com Mkondana Matupi Financial Management Specialist mkondana27@gmail.com (SAPP) Maureen Mwawa SAPP, M&E Officer maureenmwawa@yahoo.com Kondwani Makoko DARS - Desk Officers kbmakoko@gmail.com Marian Odenigbo IFAD Headqaureters m.odenigbo@ifad.org Team trained on KAP survey of GAP, 14 May 2015 Name Post District Isaac Nyironga M&E officer TLC nyironga.isaac@gmail.com Lilongwe Alfred Tsitsi Desk Officer tsitsialfred@gmail.com Balaka Bedah Mnjera M&E officer TLC bedahmnjera@yahoo.com Zomba Chisomo Tsamba Phiri M&E officer TLC chisomo@tlc.mw Nkhotakota Nelson K. Mzumara M&E officer mzumara@yahoo.co.uk Balaka/Machinga Christopher K. Amoni SABO/ Desk officer-madd Chrisamoni@yahoo.com Balaka/Machinga Addone Chisi Assistant statistician adochisi_2@yahoo.co.uk Salima Geoffrey Chilombo Agricultural chilombo@gmail.com Lilongwe Communication Officer Greno Wanda PAGRESSO grenomp@yahoo.co.uk Salima Maureen Mwawa M&E officer MoAIWD maureenmwawa@yahoo.com Lilongwe Nixon Nyalugwe PAD-GPS/ M&E officer ninyalu@yahoo.co.uk Lilongwe P.F.C. Nkhoma Desk Officer/LADD pftnkhoma@yahoo.com Lilongwe Boyd Mwafulirwa DCD-Planning boydmwafulirwa@gmail.com Lilongwe Mercy Malumelo Desk officer mercytmalumelo@yahoo.com Lilongwe Yamikani Fiwa Desk officer FAO ydfiwa@yahoo.com Lilongwe East Legson Nyirongo SAPP Desk officer l.nyirongo@yahoo.com Chitipa Clement Thapasila Desk officer clementthapasila@yahoo.com Karonga Thaf Mleba LRCD Economist thafmlebe@yahoo.com Bonface Koutale Desk Officer bonkautale@yahoo.com Chiradzulu Enock Whayo LRCD ewhayo@yahoo.co.uk Karonga K.J. Kamoyo LRCD kamokefa@yahoo.com Lilongwe William Mgwira Desk officer wmngwira@hotmail.com Blantyre Sarah Mandoloma Desk Officer sarahmandoloma@yahoo.com Nkhotakota Jane Nkhono Principal economist jnkhono@gmail.com Blantyre Lucky Mfungwe Desk officer lmfunwe@gmail.com Blantyre Kenneth Chaula ACAEO-IGP kennethchaula@yahoo.co.uk Lilongwe Nicholas Mkandawire M&E officer TLC nicholasmkandawire@gmail.com Lilongwe Emmaculate Chammagomo ICT Specialist DAES emmaculatentchama@yahoo.com Lilongwe 40

47 Appendix 9: Supervision mission schedule and persons met Nkhotakota District, 15 May 2015 Name Organization Position Rex Baluwa SAPP Secretariat Program officer Richard Mgomezulu Salima ADD Deputy Program Manager Makoswa Salima ADD Principal Agriculture Officer- M.Mwenechanya Cotton Kenneth Chaula DAES ACAEO-IGP Mkondana C. Matupi SAPP Secretariat Financial Management Specialist Nancy Mpita Ministry of Finance PD& AO FKS Simfukwe Salima DIO Chief Irrigation Officer Joseph Kanyangalazi Salima ADD Principal Land Resource Conservation Officer Jimmy Kulunga Nkhotakota District Principal Ishmael Munthali SAPP Secretariat Procurement Specialist Dr. Amos Ngwira DARS Agronomist R.G.K Museka Total Land Care Zone Manager Sam Kainja Total Land Care TLC-SAPP Manager Kefasi Kamoyo Department of Land Land Resource Conservation Resources Conservation Officer Mkanya DJM Salima ADD Maintenance Officer Greno Wanda Salima ADD Principal Agriculture Gender Roles Support Services Officer Alex Malembo SAPP Secretariat Program Coordinator Osborne Ngwira Salima ADD Chief Animal Health Livestock Development Officer Linasi Chirwa Nkhotakota District M+E Davis Phangaphanga Nkhotakota District District Agricultural Development Officer Donald Siyeni DARS Agronomist S.M. Kanyenda Mwansambo EPA Agricultural Extension Development Coordinator F.D Chamanza Nkhotakota District Agricultural Extension Methodologies Officer om K.M. Chafika Chitala Research Station Manager David Kamangira DARS Senior Deputy Director Richard Lisausyo Nkhotakota District Livestock Development Officer Julius Nkhoma Mtosa EPA Agriculture Extension Development Coordinator Stella Mangochi Nkhotakota District Crops Officer Sannie Kaombe Nkhotakota District Agribusiness Officer Aone Kumwenda Department of Crop Agriculture Officer Development Willie Kachaka SAPP Secretariat M&E SAPP Herbert Wakhalira Nkhotakota District Senior Assistant Land Resource Conservation Officer N.T.W. Mataka MOAIWD Aswap Head Com 41

48 Appendix 9: Supervision mission schedule and persons met Blantyre District, 19 May 2015 Name of Participant Designation address William Ngwira Desk Office Ry Kwelepeta CAEO M.J. Kausi PM Wafaa Elkhoury Technical Adviser IFAD Mission) Mohammed El Ghazaly M&E KM specialist IFAD Mission Odrey Ching oma G Director (Crops) Gofreyching oma@yahoo.com Sheila Kang ombe DADO (Chiradzulu) Sheilakang ombe@yahoo.co uk M.V. Makwinja Crops Officer victormakwinja@yahoo.co.uk Kefasi Kamoyo LRCO kamokefa@yahoo.com Sam Kainja TLC SAPP Manager skainja@yahoo.com Edwin Nkhulungo CAHLDO nkhulungo@yahoo.com E.T. Chirwa PLRCO etccchirwa@yahoo.com Aone Kumwenda Agri Officer aonekumwenda@yahoo.co.uk D.siyeni Agrocomist donglad2yahoo.co.uk Martha Mbawe Crops Officer mmbawe@yahoo.com Chimwemwe Hara LCR chimwemwehara@yahoo.co.uk T.V. Chimtedza PAO (Crops) tvchimtedza@gmail.com Monica Kayuzga AEDC Monica Natumbi Radio Officer cmmatumbi@gmail.com Sonnex kalitsiro Principal RTC kalitsirosonnex@yahoo.com Glory Chibwira FC chibwirag@yahoo.com Harris Katete ACO kateteharris@gmail.com P.K Nangwale PHRMO peternangwale@yahoo.com SA Kamanga DPM Kamanga.aggrey@yahoo.com B. Kautale EMO CZ bonkautale@yahoo.com N. Mpita PD & AO nmpita@finance.gov.mw L. Kavala AIA kavala@yahoo.com D.A Guma Crops Kennetheth Chaula ACAEO kennethchaula@yahoo.co.uk Pauline Kadam manja LRCO Pkadam manja@gmail.com Sungeni C. Mnesa Enumerator sungenimnensa@yahoo.com Amos Ngwira DARS Scientist David Kamanga SDDARS Alex Malemba PC (SAPP0 malemboalex@yahoo.com Rex Baluwa Prog Officer (SAPP) rexbaluwa@yahoo.ca Chigowo M.T. CLACO Stella Kankwamba Director -DAES Hendrick Mlendo PPO - Harts Mathews Lisausyo AEDO Mphtso Mbulukwa EMO -BT mmbulukwa@yahoo.co.uk Matin Kamlomo DADO Blessing Susuwele ADADO 42

49 Appendix 9: Supervision mission schedule and persons met Pre-Wrap up meeting to review of Aid Memoire, 25 May 2015 Name of Participant Post Ishmael Munthali Procurement Specialist (SAPP) Willie Kachaka SAPP (M&E) Specialist Trent Bunderson Total Land Care Executive Director John Mussa Director of Land Resource Rex Baluwa Programme Officer (SAPP) Alex Malembo Programme Coordinator (SAPP) Gray Nyandule Phiri CAS Wilfred Lipita CAETS David Kamangira SDDARS Dr Wilkson Makumba DARS Dr Amos Ngwira Desk Officer, dars Godfrey Wanjohi IFAD Consultant Wafaa Elkhoury Technical Advisor (IFAD) Thomas Rath Country Programme Manager (IFAD) Mohamed El Ghazaly M&E and KM specialist (IFAD) Larisa Setaro KAP Advisor (IFAD) Marian Odenigbo IFAD Consultant Aone Kumwenda Department of Crops Development Zwide Jere Managing Director - TLC Sam Kainja TLC - SAPP Manager K.J. Kamoyo Land Resource Conservation Officer M.C. Matupi Financial Management Specialist (SAPP) Precious Mbewe Programme Accountant (SAPP) Hendricks Mlendo Procurement Speacialist (SAPP) G.P.N. Ching'oma Director of Crop Development Wrap up meeting (SAPP and RLEEP), 26 May 2015 Name of Participant Post Erica Maganga (Mrs) Principal Secretary - Min of Agriculture Peter Simbani Director - Debt - Aide, Min of Finance Dr Thomas Rath IFAD Country Representative t.rath@ifad.org Alex Malembo Programme Coordinator (SAPP) malemboalex@yahoo.com S. Elisa RLEEP selisa@rleep.org Emmanuel Bambe Dr D. (MoLGRD) emmabambe@yahoo.com Willie Kachaka M&E Specialist (SAPP) wkachaka@gmail.com Manuel Mang'anya Technical Advisor Agronomy mmanganya@rleep.org Dixon Ngwende NPD RLEEP dngwende@rlepp.org Wafaa El Khoury Technical Advisory - Agronomy (IFAD) w.elkhoury@ifad.org Zainab Semgalawe Technical Speacialist - Inst (IFAD) z.semgalawe@ifad.org Godfrey Wanjohi IFAD Consultant godfreywanjohi@gmail.com Larissa Setaro IFAD KAP Advisor l.setaro@ifad.org Phillip Baumgartner IFAD, VL Specialist pbaumgarter@ifad.org Precious Mbewe SAPP Accountant mbeweprecious@gmail.com Nations Msowoya DDDA msowoyan@finance.m.w Davison Mandege IM dmandege@rleep.org Alfrey M. Kamenya PCO akamenya@rleep.org David Kamangira SDDARS davidkamangira@gmail.com Stella Kankwamba Director (DAES) skankwamba@yahoo.co.uk Rex Baluwa Programme Officer (SAPP) rexbaluwa@yahoo.ca Mkondana Matupi Financial Management Specialist (SAPP) mkondana27@gmail.com Maureen Mwawa M&E Officer (SAPP) moureenmwawa@yahoo.com Dr W. Lipita CAETS wglipita@hotmail.com Kefas Kamoyo Land Resource Officer kefasikamoyo@ Kondwani Makoko Planning Officer (DARS) kbmakoko@ggmail.com Aone Kumwenda Crops Officer aonekumwenda@yahoo..co.uk Dr Amos Ngwira Research Scientific amosngwira@yahoo.com Zwide Jere Managing Director (Total LandCare) zwidejere@hotmail.com 43

50

51 Technical Annex 1: Enhancing the impact of on-farm adaptive research trials and demonstration sites Technical Annex 1: Enhancing the impact of on-farm adaptive research trials and demonstration sites 1. SAPP s development objective is to achieve a viable and sustainable smallholder agricultural sector employing good agricultural practices (GAP). The Programme implementation is organised along two components which have the expected outcomes as follows: Component 1: Appropriate agricultural technologies/gaps developed is led by the Department of Agricultural Research Services (DARS) of the Ministry of Agriculture Irrigation and Water Development (MoAIWD); and Component 2: Widespread adoption of GAPs by farmers is led by the Department of Agriculture Extension (DAES) of MoAIWD and is presently supported by with the NGO Total LandCare (TLC). 2. Although the programme officially started implementation 3 years ago, its overall disbursement of IFAD and Government funds stands at 11% only. Effectively, activities in the field started only in 2014 covering only one cropping season. It is hence difficult at this stage to assess the impact of these activities on the adoption of GAP by farmers. The mission reviewed the progress in the implementation of activities as per SAPP s AWPB 2014/15 and as per recommendations of previous missions. Despite the limited duration of programme implementation in the field, the mission noted commendable progress in various activities. 3. Considering the lost time in the first years of the programme with the implementation of very few activities, it is critical for SAPP to properly focus its activities and to find appropriate modalities to enhance their effectiveness, efficiency and impact for a higher adoption rate of the GAPs by farmers. This is important to increase the chances of the programme to attain its developmental objectives in the remaining implementation period. This note hence provides suggested modalities for the implementation of some of the main recommendations provided and agreed upon in the signed AM of the mission. The recommendations selected are considered important hence critical for SAPP to reach its developmental objectives. Component 1: Adaptive Research and Knowledge Management 4. Subcomponent 1.1: Adaptive Research. This subcomponent aims at strengthening action research programmes to develop and refine GAPs packages adapted to various agro-ecological and socioeconomic contexts. DARS, leading this component is highly commended for its contributions in the past year and specifically for the: development of a draft Adaptive Research Strategy , through a participatory process which was led by DARS and undertaken by a working group composed of key strategic partners in GAP research including DARS, CGIAR centres and LUANAR. The main themes for the action research identified within the strategy are: 1) Germplasm research; 2) Biophysical research; 3) Socio-economic research; 4) Nutrition and postharvest research. The draft strategy also includes adaptive research workplans for and the performance results framework. preparation of harmonized on-farm demonstration protocols and the training of staff on setting up the demonstration. identification of lead farmers and sites for the implementation of the adaptive research trials. support to DAES in recommending specific varieties and crops adapted for the various agroecological zone for the implementation of component 2 of the on-farm demonstration trials. 5. On-farm research trials: During the reporting period, DARS defined, developed and distributed the on-farm research trial protocols that guided the implementation of the adaptive research trials for the 2014/15 cropping season. Sites were verified and farmers identified for the implementation of the trials. A total of 441 on-farm trials on GAP research were conducted, out of the 329 target planned in the AWPB 2014/15, representing an achievement rate of 134%. Officers from ADDs, District and EPA staff were provided orientation sessions on their roles and responsibilities as desk officers for research to select lead farmers to host trials, supervise the farmers and take lead in data collection. The farm trials were based on 15 research protocols in the following areas: evaluation 45

52 Technical Annex 1: Enhancing the impact of on-farm adaptive research trials and demonstration sites of adaptation and farmers acceptance of new varieties of legumes (5 trials), agronomic studies including planning patterns and intercropping (7 trials), CA research on time of sowing and nitrogen use efficiency (2 trials), and postharvest handling technologies (1 trial). 6. The efforts of DARS in mounting harmonized trials and training staff is highly appreciated. Nonetheless, and based on field observations, the effectiveness of these trials could be further enhanced, especially as it was noted that in some cases farmers perceived the message differently from what was intended by the research. The following are 2 such examples from field observations: One on-farm adaptive research trial compared plots of maize intercropped with pigeon peas under different ridge spacing and intercropping distances and various combinations of row numbers for each crop. The ridges however were not covered with any crop residues. Farmers were invited during field days to observe and select the best performing combination of intercropping. In the same area, Conservation Agriculture (CA) was promoted as a good agricultural practice through on-farm demonstrations, with its three principles of minimal till, crop rotation/intercropping and soil cover. Both the practice of ridging as well as the lack of mulching of these ridges in the on-farm research trial on intercropping is inconsistent with the no-till practice and soil cover with residues practices of CA. One research trial aimed at comparing the performance of different varieties and using different planting techniques for soybeans including ridge spacing, depth and spacing of planting stations and the number of seeds per station. At the end of the trial, farmers identified one variety as best performing based on its yield. However, they were not guided to consider, in their evaluation, for example the taste or cooking quality of the varieties evaluated. This trial could have been used more efficiently by encouraging farmers to systematically consider which varietal characteristics are the most important for them, as is often done in the Participatory Varietal Selection trials run by DARS. Besides, the farmers participating in this research trial concluded, based on their observation, that planning one seed instead of 3 seeds per planting station (which is their common practice) was a good practice that they want to adopt for the coming season. However, they were not alerted to the fact that the good results obtained from planting one seed only is the result of good quality seeds (germination ability) rather than the new variety. The lack of clarity of the message could lead to the risk of farmers planting one seed instead of 3 in the station in the following season using poor quality seeds of the improved variety, resulting in poor germination rate and poor yield (they indicated that normally out of the 3 seeds they plant in the station, only one germinates). 7. It is hence important that i) the trials are designed in such a way that they can only result in one clear message; ii) where more than one message could be derived from the trial, officers running the trials should discuss the results with farmers and explain the reasons behind the selection of a specific technology; iii) officers should accordingly not only be trained in how to set the trial, but also how to analyse and discuss the results with farmers (comparing their conventional practices with the introduced GAPs); iv) some simple experiments could be added to the field trials to further clarify to farmers the why behind the choice of certain technologies. This could be for example a simple seed germination and seed purity tests on blotter paper to compare good quality seeds vs those saved directly from farmers or uncertified from the market. Field days in adaptive research trials 8. Field days are linked to the research trials, whereby farmers visit the field several times during the season, including at harvest, to observe the trials or demonstration. Field days are announced and the invitation is sent by the lead farmers to all fellow farmers through the village chief. The number of farmers visiting varies and could be over 100 farmers. However, no record is kept on who attends, nor on whether the same farmers came to observe the field at different stages of the season. The followup and observation at different stages of crop development is very important for farmers to understand, accept and adopt the technology promoted. 9. It is suggested that while field days are open to all, a limited number of farmers (20-30) would be specifically invited to attend all the field days during the whole season. Their names and 46

53 Technical Annex 1: Enhancing the impact of on-farm adaptive research trials and demonstration sites attendance are recorded. Following the principle of Participatory Varietal Selection (PVS) already practiced by DARS, farmers would be asked at each field day to evaluate and provide scores for some critical parameters of the technology being demonstrated. Parameters could include the development of the crop, labour considerations, planting time and distance considerations, water needs or limitations, cost considerations, etc. These parameters may be different for each stage of the demonstration (crop development) and will be set at the design of the trial by DARS. At the end of the research trial, yield and total cost parameters will be provided to farmers by the lead farmer and the DARS support staff, and the farmers will provide their final evaluation of the various GAPs being compared. A discussion would follow to understand the reasons for the selection of one technology by the farmers. This participatory method would help: Farmers understand better why they selected one technology or GAP and not the other through the scoring of the parameters and through the discussion with other farmers and researchers. Farmers undertaking the evaluation are more likely to adopt the selected technology as they have observed and assessed it throughout the season, and have discussed with fellow farmers the results of their evaluation. Based on the scoring and discussion with farmers, DARS could better understand what farmers appreciate or consider as constraints in the technology provided and how they perceive the trials. DARS would be guided as how trials could be improved for higher adoption rate. The number and names of farmers attending field days on a regular basis would be properly documented for the M&E system avoiding potential double counting of those visiting the trials. Component 2: Farmer Adoption of Good Agricultural Practices. 10. Subcomponent 2.1: Improved Agricultural Extension. This subcomponent is led by DAES and includes various types of extension delivery. 11. Farmer to Farmer Extension Network. SAPP implementation is firmly based on the lead farmers based extension approach including through lead farmer trainings, field days, review meetings and support in the establishment of model villages, the latter serving as learning centres. SAPP entered into a Memorandum of Understanding (MoU) with the NGO Total LandCare (TLC) to support the promotion of Conservation Agriculture (CA) and related GAPs working in close collaboration with DAES but in different EPAs of SAPP. 12. During 2014/15 a total of 3,131 lead farmers, including those in TLC managed EPAs, have been identified and trained, representing an achievement rate of 104% against the annual target of 3,030 farmers. Training covered technologies such as maize planting, legume production, CA, agroforestry, compost and manure use, livestock management, as well as on gender mainstreaming and nutrition. Staff were oriented on harmonized demonstrations, inputs were procured and demonstrations were mounted. Related field days were also conducted. This is a highly commendable achievement completed in a very short period of time. 13. As in the case of adaptive research trials, and based on the discussion with lead farmers and the farmer groups around the on-farm demonstrations, there is scope to improve the understanding of farmers of the GAPs demonstrated. It is critical that farmers understand why some technologies recommended are considered better than others, especially under their own agro-ecological and socio-economic conditions. The same recommendations and comments detailed above in Component 1 for the design of on-farm research trial and the running of field days could be adopted for the onfarm demonstrations undertaken by DAES and TLC. The participatory assessments of the demonstrations by farmers during field days (see section above) allows them to better understand their needs and limitations and hence their adoption would be more sustainable. This will also provide means to improve on the design of the demonstrations and the M&E system of SAPP. 14. Farmers Field Schools (FFS): Few FFSs have been established till present, and the use of this approach for extension is still considered at a pilot stage within SAPP. It is expected to be scaled up with additional training of AEDOs. As per observations of the mission in the field, the FFS approach used is not harmonised and often lacks any FFS curriculum, which is core for the running of 47

54 Technical Annex 1: Enhancing the impact of on-farm adaptive research trials and demonstration sites FFS. If properly applied, the FFS approach has proven to be a very effective for the adoption of GAPs, showing comparative advantages where farmers are illiterate or are in remote and vulnerable areas (civil unrest, HIV-affected areas, climate change impacts, etc.). The reasons for the effectiveness of the FFS approach is that it helps in the empowerment of farmers through providing them with knowledge and skills, sharpening their ability to make critical and informed decisions, sensitizing them in new ways of thinking and problem solving and enhancing the group solidarity. 15. The Farmer Field School is a form of adult education, which evolved from the concept that farmers learn optimally from field observation and experimentation. The FFS consists of a group of farmers who get together on a regular basis (usually once per week or every 2 weeks) and over the whole growing season from field preparation for planting till harvest and postharvest. Together, they observe and discuss the dynamics of the crop s ecosystem. They get together to study a particular topic of importance to them, which is the entry point to the FFS that motivates farmers to regularly attend. Based on the entry point (a specific crop production constraint, or devastating pest or disease, soil conservation, climate change effects on crops, etc.), each FFS has a curriculum that identifies the content of every session to be discussed throughout the growing season. The content of the curriculum includes regular agro-ecosystem analysis in the field where farmers observe the ecosystem and discuss their observations. It also includes simple experimentation in the field that helps farmers further improve their understanding of functional relationships. Additional topics of interest to farmers could be included in the curriculum through external experts whenever needed. These commonly include such topics as nutrition, climate change, hygiene, HIV, marketing, etc. Each FFS is supported by a facilitator, usually an extension agent, who is trained in group facilitation as well as technical skills related to the FFS entry point. Training usually covers the whole crop cycle. The quality of the facilitators is crucial for the success of FFS, both in terms of facilitation skills and technical knowledge. It is also important that the facilitator is a resident of the location where the school is established. At the end of the FFS, the facilitator usually selects 1-2 especially motivated farmers from those who graduated from the FFS, i.e. completed one cycle of crop growth within the FFS, to become themselves farmer facilitators. Farmer facilitators would be provided with training in facilitation skills and some further technical refresher courses, and would then run their own FFS. Commonly FFS run by farmer facilitators are very effective as the farmers tend to respond better to their peers. Adoption rates of new technologies have proven to be higher and more sustainable in FFS approaches. Women are often the majority in FFSs. 16. Since the FFS approach in SAPP is still at a pilot stage and its scaling up is planned, it is important that the implementation of FFS methodology starts on a solid basis to ensure its effectiveness. It is accordingly recommended that SAPP prepares an FFS training and rolling plan to include the following: Training for Master trainers. It is important to have a critical number of highly qualified national master trainers, who could run FFS training for facilitators. Since FFS is not new in Malawi, these Master trainers may be already available. However, even if they are available, it is recommended that they would get a refresher course to ensure that they all have a similar understanding of the concept and are at the same level of delivery capacity. Training of facilitators (mainly AEDOs). This should include training in the principles and methodologies of FFS, in facilitation skills and in technical skills. This should be a season-long training that could however, be planned as several sessions distributed over several periods of the growing season depending on the availability of the trainees to attend the intensive training. SAPP has submitted a proposal to IFAD to recruit Field Assistants on non-established positions. If approved by IFAD, it is suggested that these recruited staff, expected to be residing in various EPAs close to farmers, would be trained as FFS facilitators, who could establish FFS in their areas. Each trained AEDO facilitator could run 2 FFS per season. Development of FFS curriculum. This is a critical step for the proper running of FFSs. Curricula are developed jointly by research and extension staff (facilitators) and with the support of the FFS master trainers, since they need to have adapted exercises for each session throughout the season. This is done as part of the training of facilitators or after that training. Since DAES, 48

55 Technical Annex 1: Enhancing the impact of on-farm adaptive research trials and demonstration sites together with DARS has already identified priority commodities and GAPs to be promoted for the various agro-ecological zones (which were the basis for the designing the demonstration fields with lead farmers), it is recommended that curricula are developed for each of these commodities and GAPs accordingly, to be used for the FFS in the respective agro-ecological zones. Selection of 1-2 farmer facilitators graduates of the FFS. Farmers showing leadership, facilitation and technical capacities within the FFS group would be selected at the end of the season-long FFS. These will be provided with some additional training in facilitation skills and will be provided support to establish their own FFS. The farmer-led FFS should be provided technical support and follow-up by the AEDO facilitator. Refresher courses. These should be planned for each year to update the knowledge of all facilitators, including farmers facilitators and exchange experience from the field. Inputs from these courses and meetings are used to revise and improve the curriculum to make it more adapted to needs. M&E. Facilitators would be requested to provide inputs on the FFS they are running to the M&E system of SAPP. 17. FAO Malawi has presently highly qualified and experienced staff in FFS and is planning to run trainings of FFS Master Trainers within 2015 for several countries in the region. SAPP is highly encouraged to get the support of FAO in this activity. FFS technical support from FAO could also be provided in the development of the FFS planning and curriculum development. Capacity building of DARS and DAES Staff 18. Several capacity building activities are planned within SAPP, including providing support to staff to attend BSc and MSc degrees at the university as well as attending workshops. It is important that all capacity building activities are aligned with and support the Adaptive Research Strategy that has been recently developed to optimize their input towards SAPP s activities their sustainability. Partnerships with international research centers (CGIAR-centres working in Malawi) and with national and international universities could be enhanced for that purpose. 49

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57 Technical Annex 2: Introduction of Knowledge, Attitude and Practice (KAP) methodology Technical Annex 2: Introduction of Knowledge, Attitude and Practice (KAP) methodology KAP methodology The Knowledge, Attitude and Practice (KAP) methodology aims at measuring changes in human knowledge, attitudes and practices in response to a specific intervention. Under this methodology data is collected through a structured questionnaire designed for the specific intervention/topic. KAP methodology in SAPP By introducing a KAP survey into the annual M&E system of SAPP, the aim is to effectively support project implementation, building the capacity of the implementing partners to understand and document the current level of knowledge of extension services and famers, perceptions, limits and actual adoption, or not, of Good Agricultural Practices (GAPs) by project beneficiaries. The KAP survey findings will provide a guide for future interventions in terms of addressing and responding to the identified gaps and designing appropriate strategies to ensure greater success of the project. Moreover, the KAP survey will provide baseline data collection for future evaluative KAPs and will support the on-going M&E system of the programme. The table below presents an overview of the activities undertaken for the introduction of the KAP methodology and the delivery of the KAP questionnaire. Table 1: Activities overview Day Date Activity Wednesday 13-May Presentation on KAP methodology in the MoAIWD Thursday 14-May Workshop: KAP methodology, objectives and KAP survey Friday 15-May 3 Focus Groups in Nkhotakota Saturday 16-May Revision of FG questions Sunday 17-May Depart for Balaka Monday 18-May 3 Focus groups in Balaka Tuesday 19-May 3 Focus groups in Blantyre Wednesday 20-May Depart for Lilongwe Thursday 21-May Workshop: lessons from the field to revise KAP and pre-testing Friday 22-May Pre-test in Lilongwe east Saturday 23-May Workshop: finalizing questionnaire, roll out of an implementation plan The KAP methodology has been introduced through a learning process which encompassed three workshops conducted in Lilongwe and 4 field days, with a total of 28 attendees including desk officers from the 6 districts implementing SAPP (Chitipa, Nkhotakota, Lilonwe, Balaka, Blantyre and Chiradzulu), M&E officers from MoAIWD and from the NGO Total LandCare (TCL). Workshops In the first workshop, attendees were introduced to the KAP methodology and briefed on the field work whereby focus group discussions (FGDs) were conducted and the outcomes feed into the refining of the KAP questionnaire. The second workshop took place after 3 field days of FGDs and during which the lessons learned were summarized and discussed how to integrate these into the KAP survey tool; in addition, the attendees pre-tested the KAP questionnaire among them, in order to prepare for the pre-testing in the field. The third workshop aimed at finalizing the KAP survey tool with feedbacks from the field pre-testing and an implementation plan was rolled out. 51

58 Technical Annex 2: Introduction of Knowledge, Attitude and Practice (KAP) methodology Overall, the attendees showed engagement and active responsiveness, recognizing the potential of the KAP methodology and the positive impact it could have in SAPP's M&E system. Focus group discussions (FGDs) A total of 9 FGDs were held in 3 districts (Nkhotakota, Balaka and Blantyre), involving 3 groups of farmers (men, women and youth) per district. From the group who attended the KAP workshops only staff from each district attended the field day and acted as a facilitator. The objective was to explore the thematic areas covered in the KAP survey tool such as adoption of Good Agricultural Practices (GAPs), access to agricultural extension services, access to agricultural inputs, access to credit and access to seasonal weather information. Pre-test All the people who participated in the KAP workshops joined the pre-testing which took place in Lilongwe East, testing the tool with two farmers each. The feedbacks from the pre-test were discussed on the final training, to test relevance of questions, coded answers and clarity of wording and instructions. Implementation plan The KAP survey will be part of the annual M&E system of SAPP and follow the baseline sampling plan. The tool has been sent to translation in Chichewa to the Communication Office of MoAIWD. 7 supervisors have been identified from the 6 districts implementing SAPP (Lilongwe has been split into Lilongwe West and Lilongwe East). Each supervisor was asked to provide a list of 4 enumerators (for a total of 28 enumerators), to be sent in Lilongwe for a joined training on KAP methodology and survey tool. A process of data entry has been set up, using CS pro software. The M&E officer of SAPP will be responsible for the implementation of the tool to be launch soon after harvest (June/ July). 52

59 Technical Annex 2: Introduction of Knowledge, Attitude and Practice (KAP) methodology Attachment A: Focus group checklist SECTION 1 - Adoption of Good Agricultural Practices In general, what is the soil fertility of the area? (rate from poor-medium-moderate fertility) How do people in the village manage the fertility of the soil in their farms? Any challenges with climate variability? If so, what cropping systems are used to adapt to climate variability? 1.4 Knowledge of improved agronomic practices (look out for minimum disturbance of the soil, timely planting at the onset of planting rains, retention of crop residue and weeds on soil surface, crop rotation, intercropping with legumes or other crops, usage of inorganic or organic fertilizer, agroforestry, soil and water conservation measures, use of herbicides and type of herbicide, good quality seeds, seed multiplication, mechanized services for land preparation/weeding, pest/disease management, etc.) Adoption of the above practices? 1.52 If yes, why (ask for each mentioned)? For those using residues, where do they get this from? 1.7 Is there any information you need to plan a new agricultural season? Problems with post-harvest losses? How are these dealt with? Storage facilities used. 1.9 Do you engage in seed multiplication? 1.92 How is your seed s quality certified? SECTION 2 - Access to agricultural extension Proportion of households in the village receiving extension advice? How often the extension officer visits the village? 2.22 Are there fixed days for visit meetings with the extension officer? 2.3 What is the methodology used by extension officers to deliver the message? (field days, trainings, village meetings). 2.4 Do you get advices from lead farmers? 2.5 How often do field demonstrations take place? 2.61 If you are seeking advice for issues related to your agricultural production to whom will you ask? How prompt will the response be? 2.7 IF In what way has the lack of extension services affected your production? 2.8 Availability of a Resource Centre in the area. SECTION 3 - Access to agricultural inputs What inputs did households use (look out for fertilizer; seeds for Maize, Groundnuts, Soya Beans, Pigeon Peas and Cow Peas). For seeds also probe for the varieties i.e. local, hybrid etc How did most farmers get fertilizer and seed over the last two growing seasons (2012/2013 and 2013/2014) (distinguish unsubsidized, cash, credit, subsidized and free) Use of implements in the last season (look out for inoculants, herbicides, pesticides, sprayers, planters, treadle pumps and shellers) Source of the inputs (commercial channels or otherwise) Approximate distance to the nearest supplier. 53

60 Technical Annex 2: Introduction of Knowledge, Attitude and Practice (KAP) methodology Do agro-suppliers visit local market/village? If yes, how often? Do you ask advices on inputs use (type, time of use, precautions needed for pesticides?)? Do they sell inputs in small packages? SECTION 4 - Credit Do you access any credit or saving system? 4.12 If yes, which one? For what do you use this money? 4.2 Do you access seasonal loans? SECTION 5 - Seasonal weather information Do you receive climate information? How often? Does it allow you to plan in time your agricultural investment of the coming season? 5.2 Do you access any weather insurance? 54

61 Technical Annex 2: Introduction of Knowledge, Attitude and Practice (KAP) methodology Attachment B: KAP survey questionnaire MODULE 1. INDIVIDUAL IDENTIFICATION HOUSEHOLD IDENTIFICATION CODE CODE DISTRICT 1.14 LAND AREA (ACRE) (both rented and owned) TA,STA, or TOWN ENUMERATION AREA CODE 1.15 NUMBER OF PLOTS AND CROPPING PATTERN (LAST SEASON) 1.15(1) 1.15(2) PLACE/VILLAGE NAME 1.15(3) NAME OF EPA ARE YOU A LEAD FARMER? 1=Yes; 2=No SAMPLE GROUP 1=TLC; 2= Government; 3=control HOUSEHOLD ID NAME OF HOUSEHOLD HEAD NAME OF THE RESPONDENT AND RELATION OF THE RESPONDENT TO THE HOUSEHOLD HEAD SEX OF THE RESPONDENT 1=Male; 2=female TYPE OF HOUSEHOLD 1=male headed 2=female headed 3=child headed AGE OF THE RESPONDENT EDUCATION LEVEL COMPLETED OUTCOME OF THE INTERVIEW 1=Completed 2=Incomplete ABILITY TO BE INTERVIEWED ALONE =None 2=Primary 3=Junior Certificate 4=Malawi School Certificate of Education 5=Tertiary school 6=University = Alone 2= With adult females present 3= With adult males present 4= With adults mixed sex present 5= With children present 6= With adults mixed sex and children present SECTION 1B -SURVEY STAFF DETAIL Name of enumerator Enumerator code Date of interview Name of field supervisor Field supervisor code Date of questionnaire inspection Name of data entry clerk Data entry clerk code Date of data entry Name of data validations clerk Data validation clerk code Date of data validation 55

62 Technical Annex 2: Introduction of Knowledge, Attitude and Practice (KAP) methodology MODULE 2. KNOWLEDGE ON GAPs Practices Are you (singular) aware of the [PRACTICE]? Yes=1 No=2 >> next activity Who provided you with the knowledge on the [PRACTICE]? Indicate yes=1 or no=2 for each channel of information A Government extension agent F Family members B NGO extension agent G Fellow farmer in village C Lead farmer in the village/area H Radio Program D Farmer organizations I Traditional knowledge E Agro- input dealers J Other (specify) How was the knowledge on the [PRACTICE] provided? Indicate yes=1 or no=2 for each means of information A During visits to farms or house within the community B During farmers' group meetings H Sought information C Demonstrations on farm plots I Use of posters And prints outs D Farmer Field School J Through agro- Service centers E Field days K Trainings F Radio/TV G Agricultural show/fair L Other (specify) Code Practice Description A B C D E F G H I J A B C D E F G H I J K L A Intercropping and its principles 1 2 next practice B Crop rotation and its principles 1 2 next activity C Conservation agriculture done with planting basins 1 2 next activity D Conservation agriculture done with jab planters 1 2 next activity E Conservation agriculture done with direct seeder 1 2 next activity G Conservation agriculture done with cover crops 1 2 next activity H Pest/disease management 1 2 next activity I Weeding after harvesting (kupalira mutakolota) 1 2 next activity J Type of fertilizer to apply to your soil 1 2 next activity K L Type of herbicide to apply to weeds you find in your plot Mechanized services for land preparation in your village 1 2 next activity 1 2 next activity M Mechanized services for weeding in your village 1 2 next activity N Post-harvest facilities (metallic silos, hermetic bags) 1 2 next activity O Certification of seeds 1 2 next activity 56

63 Technical Annex 2: Introduction of Knowledge, Attitude and Practice (KAP) methodology MODULE 2. KNOWLEDGE ON GAPs (Continued ) Code Indicate if the following sentences are true or false True= 1 False=2 Do not know= The retention of crops residues to cover the soil maximizes the capture of rainfall, reducing runoff and loss of top soil Weeding after harvesting will reduce the weeds seed bank in my soil, therefore reducing the incidence of weeds in the next season Crop rotations help breaking the pest and diseases cycle of monocultures (e.g. maize, tobacco) The germination of the seed is determined by the variety selected Minimum soil disturbance is done by reducing the space between ridges (from 90cm to 75cm) Round-up herbicide is applied after maize seed germinated The rate of application for Round-Up is 2.5 l/ha (=1l per acre) Pit planting does not disturb the soil Mulching can be achieved without importing residues from other fields CA is practicable without application of herbicides 2.14 Mulching can only be done in maize fields 2.15 In 1-1 planting of maize you cannot intercrop 2.16 Mulching reduces growth of weeds 2.17 Planting legumes improves soil fertility 2.18 Planting stations distance for legumes depend on type and variety of legume 2.19 Cowpea intercropped with maize need to be planted one month after planting maize 2.20 Aflatoxines affect only groundnuts 57

64 Intercropping and its principles Crop rotation and its principles Conservation agriculture done with planting basins Conservation agriculture done with jab planters Conservation agriculture done with direct seeder Conservation agriculture done with cover crops Pest/disease management Weeding after harvesting Type of fertilizer to apply to your soil Type of herbicide to apply to weeds you find in your plot Mechanized services for land preparation in your village Mechanized services for weeding in your village Use of certified seeds Republic of Malawi Technical Annex 2: Introduction of Knowledge, Attitude and Practice (KAP) methodology MODULE 3. ATTITUDES TOWARDS GAPs Enumerator: before starting this section explain to the respondent the rating scale. The shaded cells should not be answered PRACTICES A B C D F G H I J K L M N How strong do you (singular) agree - referring to the rating scale in the bottom of the page- to the following statements on each of the [PRACTICES] [PRACTICE] is easy to implement [PRACTICE] requires little farm power [PRACTICE] improves soil fertility [PRACTICE] increases soil moisture 3.05 [PRACTICE] reduces time needed for weeding 3.07 [PRACTICE] increases productivity 3.08 [PRACTICE] decreases seed rate 3.09 [PRACTICE] provides diversified food to the HH 3.10 [PRACTICE] saves time 3.11 [PRACTICE] makes me less vulnerable to poor rain seasons Rating scale: Not sure/not know/ not applicable 0 Strongly disagree.1 Disagree 2 Agree.3 Strongly agree..4 58

65 Technical Annex 2: Introduction of Knowledge, Attitude and Practice (KAP) methodology MODULE 4. ATTITUDES TOWARDS GAPs Enumerator: before starting this section explain to the respondent the rating scale. The shaded cells should not be answered How strong do you agree (singular) - referring to the rating scale- to the following statements A Rating scale: Not sure/not know/ not applicable 0 >>NEXT QUESTION Strongly disagree.1 Disagree 2 Agree.3 Strongly agree..4 B How often? Use the code referring to the scale 1=week 2=month Extension services Scale Times 4.01 In my village I attend regular meetings held with the agricultural extension worker In my village I attend field days organized by the agricultural extension worker I attend regular meetings held on demonstration plots by lead farmer Factors influencing decision making on adoption of new agricultural practice Scale Times 4.04 Seasonal weather information I access is timely enough to decide how to invest in agriculture 4.05 I do not want to invest in agricultural production because I do not own the land or do not have long-term cultivating rights on the same piece of land 4.06 There are no agro-dealers nearby (=walking distance) where I can buy inputs needed for a new agricultural practice 4.07 I do not trust the information received on the new agricultural practice I want to adopt 4.08 I do not know the market price of the crop in time to decide on a new investment (you can rate up to 3 crops, see codes on the right) 4.09 There is no market for a new crop (you can rate up to 3 crops, see codes on the right) =year /4.12 ONLY Which type of services? (For each indicate yes=1 or no=2) Maize Labour shortages could limit my adoption of a new agricultural practice I access services for land preparation I access services for weeding CODES QUESTIONS GROUNDNUTS G1 = CHALIMBANA G2 = CHALIMBANA 2005 G3 = CG7 G4 = NSINJIRO G5 = KAKOMA G6 = BAKA G7 = CHITALA G8 = MANIPINTAR G9 = CHITEMBANA G10 = MAWANGA G11 = MALIMBA G12 = RG1 BEANS B1 = KHOLOPHETHE B2 = MALUWA B3 = NYAMBITIRA B4 = NUA 45 B5 = NUA 59 B6 = VTT-924/4-4 B7 = NAMTUMBA Type of services: A=family labour B=hired labourers C=animal drawn D=direct seeder PIGEON PEAS P1 = ICEAP97026A P2 = ICEAP87105 P3 = MWAI WATHU ALIMI P4 = MTHAWAJUNI P5 = KACHANGU P6 = CHITEDZE P7 = SAUMA P8 = ICPL93026 P9 = ECPL87105 P10 = ECEAP01514/15 COW PEAS C1 = SUDAN 1 C2 = IT82E-16 C3 = MKANAKAUFITI C4 = OTHER (SP) C SOY BEANS S1 = MAKWACHA S2 = TIKOLORE S3 = MAGOYE S4 = OCEPARA-4 S5 = PAN 1867 S6 = SOPRANO S7 = SERENADE S8 = SOLITIARE S9 = BOSSIER S10 = DAVIS S11 = DUOCROP S12 = GEDULD S13 = IMPALA S14 = SANTA-ROSA S15 = HARDEE S16 = KUDU S17 = 747/6/8 S18 = 427/5/7 S19 = 501/6/12 S20 = 491/6/7 S21 = TGX17402F E= power tiller with 2 wheels tractor F= ripper with 4 wheels tractor G= Sprayer A B C D E F G 59

66 Technical Annex 2: Introduction of Knowledge, Attitude and Practice (KAP) methodology ENUMERATOR: MODULE 5. DECISION MAKING IN AGRICULTURAL PRODUCTION Ask 5.01 for all categories of activities before asking If the respondent is the person who turns out to be making the decision, 5.02 shouldn t be asked; if the respondent is a male and 5.01 response is 1, 5.02 shouldn t be asked. If respondent is a female and 5.01 response is 2, 5.02 shouldn t also be asked. If household does not engage in that particular activity, enter 8 and proceed to next activity. A B C D E When decisions are made regarding the following aspects of agricultural production, who is it that normally takes the decision? 60 To what extent do you feel you can make your own personal decisions regarding these aspects of agricultural production if you want(ed) to? (Example of rating scale: my partner wants to sell a goat, but I don t: Not at all= I cannot express my will Small extent= I can express my will but won t be considered Medium extent: I can express my will and find a compromise High extent= I can express my will and change the decision in my favor) The types of main crops to grow for agricultural production Introduction of an agricultural practice (as the ones mentioned before) Changing a traditional agricultural practice (e.g. from burning crop residues to keep them on the field) Investing money on inputs for agricultural production Deciding on which plot to use subsidized inputs F Deciding on which plot to use inputs purchased G Deciding on the use of the agricultural produce H I Deciding on what to sell of the agricultural produce Control over the money gained through the selling of produce : Who makes decision Main male or husband... 1 Main female or wife Husband and wife jointly... 3 Someone else in the household... 4 Respondent with someone else inside the household... 5 Respondent with someone else outside the household.. 6 Someone outside the household/other... 7 Household does not engage in activity/decision not made : Extent of participation in decision making Not at all 1 Small extent..2 Medium extent..3 To a high extent 4

67 Technical Annex 2: Introduction of Knowledge, Attitude and Practice (KAP) methodology MODULE 6. PRACTICE OF GAPs Practices Did you ever use [PRACTICE]? You can specify up to 4 CODE per PRACTICE 1= Yes, I use it 2=I tried but I stopped (go to question 6.03) 3=No, never (skip to next practice) Then specify the cropping season (up to 3 seasons), when applicable Please define if the implements used are: 1=owned 2=rent/hired 3=borrowed 4=exchange 5=gift 6=free from project (Only if answered 4 to Q.6.01) Why did you stop [PRACTICE]? 1=No support from extension officer 2=Lost money on it 3=Increased my labour 4=No subsidies 5=other (specify) On a 1-10 scale (where 10 represents the total of your land), what is the percentage of the area on which you are using [PRACTICE]? For what type of crop is [PRACTICE] being used? (For each one: yes=1, no=2) 1=maize 2=groundnut 3=soya 4=pigeon pea 5=cow pea 6=other (specify) Total amount used on this area? What was the main source of [PRACTICE] used on your plot? Practice Description CODE a. Frequency of practice Land preparation Minimum tillage (last 3 seasons) (CODE: A1=dibble stick, A2=basins, A3=jab planter; A4=direct seeding, A5=power tiller with 2 wheel tractor, A7=ripper with tractor, A8=ripper animal drawn) b. Season Percentage UNIT 1=Kilogram; 2=2 kg bag; 3=3 kg bag; 4=5 kg bag; 5=10 kg bag; 6=50 kg bag; 7=Tons, 8=Litres, 9=Other (specify) Agricultural inputs/ implements =Subsidy 2=Commercial purchase 3=Mixed 4=Gif 5=Free from project 6=loan 7=recycled Use of certified seeds (CODE: B1=local;B2= composite/opv; B3= hybrid) Fertilizer use (CODE:C1= 23:21:0+4S / chitowe; C2= Dap; C3=Can; C4=Urea; C5= D Compound; C6= Mixture; C7= 23:21+Urea, C8=Other (specify) Weeding control (CODE: D1=manually; D2=animal drawn; D3=roundup with sprayer, D4=other herbicide (specify)) 61

68 Technical Annex 2: Introduction of Knowledge, Attitude and Practice (KAP) methodology MODULE 6. PRACTICE OF GAPs (continued ) Practices Did you ever use [PRACTICE]? You can specify up to 4 CODE per PRACTICE 1= Yes, I use it Practice Description CODE a. Frequency of practice Agroforestry CODE: E1= Contour tree lines in association with vetiver ; E2= Tree and crop associations (e.g. Faidherbia albida); E3= Annual crop association with maize (e.g. Tephrosia vogelii); E4=Improved fallows (Tephrosia, Sesbania);E5=Boundary planting, live fences, wood lots, homesteads and fodder banks Crop diversification Intercropping (CODE: F1=cereal + cereal; F2=cereal + legumes; F3=cereal + cover crops,f4=relay cropping, F 5=legumes + legumes;6=other (specify)) Crop rotation Insert the code of the crop grow in each season for the same plot (CODE: G1=cereal, G2=legume,G3=cover crop, G4=tuber, G5=vegetable, G 6=other (specify)) Soil cover with crop residues (CODE: H1=maize stoves, H2= rice stoves, H3=groundnuts stoves, H4= grasses, H 5=tree leaves, 6=other (specify)) 2=I tried but I stopped (go to question 6.03) 3=No, never (skip to next practice) Then specify the cropping season (up to 3 seasons), when applicable4 (Only if answered 4 to Q.6.01) Why did you stop [PRACTICE]? 1=No support from extension officer 2=Lost money on it 3=Increased my labour 4=No subsidies 5=other (specify) On a 1-10 scale (where 10 represents the total of your land), what is the percentage of the area on which you are using [PRACTICE]? Where is the area located on which you are using [PRACTICE]? 1=On main production 2=Contours 3=Boundaries 4=Less productive land 5=Other (specify) What was the main source of [PRACTICE] used on your plot? 1=Subsidy 2=Commercial purchase 3=Mixed 4=Gif 5=Free from project 7=recycled b. Season Percentage Type of land Source 6=loan 62

69 Technical Annex 3: Financial management report Technical Annex 3: Financial management report I. Introduction 1. The Sustainable Agriculture Production Programme (SAPP) is a 9 year Project, financed by the Government of Malawi (GoM), and the International Fund for Agricultural Development (IFAD). The project was approved by IFAD in 13 December The Financing Agreement was signed on 24 January 2012, and became effective on the same day. The programme is planned for completion on 31 December 2021, while the loan closure is planned for 30 September The total cost of the Project, as planned at design is USD 51 million. SAPP is financed by IFAD with USD 22.5 million of Loan and Grant in equal amounts, by IFAD start up Grant of USD 600,000, by GoM USD 3.2 million, and beneficiaries at USD 1.2 million. II. The objectives and conduct of the mission 3. Financial Management Specialist reviewed the fiduciary aspects of the programmes. More specifically, the Financial Management Specialists carried out the tasks in the attached terms of reference (Attachment 1). 4. In the course of carrying out the assignments, the mission engaged with the officers of the PMU management, and other staff. The mission takes this opportunity to gratefully thank all these officials and staff for their time, support, cooperation and collaboration. A. Financial Management 5. Overall overview: The financial management on the overall is rated moderately unsatisfactory. On the positive side the implementation has been speeded up in the last 6 months. However, the substance is mainly the procurement of motor vehicles, motorcycles, bicycles, computers and Equipment. The Financial management team forming part of the TPCT has improved the quality of the financial management including the easing up of the hitherto chronic slowness flow of funds to the implementing partners. The financial management team has also been positive in their efforts, relative to putting into full use the TOMPRO accounting software with the data capture process having been substantially implemented installed. The migration of the financial transactions since project inception is ongoing. The completion of this task and reconciliation thereof is expected by 31 August The procurement function has improved and vehicles, motorcycles, and office equipment and computers have finally been acquired. 6. On the negative side, disbursement of funds is still low. Although this has improved during the last seven months as a result of accelerated procurement, the level is SDR 3.94 million or 14% of the combined Loan and Grant funding of SDR 28.9 million. This compares unfavourably with the expected 51% disbursement level as at the end of the 4 th year of implementation. Although procurement has been fasttracked, the financial commitments for vehicles, motorcycles and equipment falling under category 1, have exceeded funds available under that category by approximately USD 71,000 even after taking into account the 30% excess allowance as approved by IFAD. There is still uncertainty of continuation of current arrangement of the financial management team within the TPCT structure, whose sustainability is desperately critical for the consolidation of the good financial management gains that have been achieved. The gains made during the tenure of the TPCT have reduced the high risk level that had manifested itself in the project before the installation of the TPCT. The other weakness is failure in certain number of cases to observe the laid down procedures in the process of payment of expenditures as observed by the auditors during the audit of 2013/14 financial year. 7. Consequently, the following actions were agreed: a) GoM will implement the strong Mission s recommendation of continuation of the structure of the TPCT for another year while the long-term implementation result oriented arrangements are worked out and put in place. In this regard the contracts of the TCPT management staff should be renewed, on the basis of performance evaluation, as well as motivating and mentoring the counterpart staff. b) GoM will find a solution to the financing of the funding gap of approximately USD 71,000 under category 1. 63

70 Technical Annex 3: Financial management report c) The TPCT will complete the migration of the financial data into TOMPRO accounting software and reconcile the outputs to the 2013/14 audited accounts by 30 June For 2014/2015 financial year the posting will be completed by 31 August 2015, to ensure readiness for the statutory audit. d) All procedures as laid down in the Accounting manual as well as in the GoM manuals will be adhered to at all times in the processes of disbursement of funds through payments. 8. Financial Systems and internal Controls: The financial systems internal controls and checks have been put in place and are included in the Programme implementation manual. These are data capture and accounting, Financial Reporting, Cash flow, Auditing and Procurement. For data capture and accounting the project has acquired the TOMPRO accounting software which is in the process of being put into full use. The financial procedures are still in the draft form and have not been updated since project inception. It was agreed that the procedures will be updated annually to reflect implementation changes and improved financial monitoring and reporting templates. 9. Financial Management Capacity and Reporting: The capacity of the financial controller under TPCT is enhanced with counterpart accountants at the Ministry s headquarters and in the programme districts. Computers and other equipment as well as the critical TOMPRO accounting software have been acquired. The key staffs have been trained in IFAD financial management procedures through the IFAD e-learning. The financial reporting require improvement in terms of quarterly statements which should include Financial budget performance against actual by activities, Loan utilisation statements, Cash flow performance and status, and statements of receipts and uses of funds. It was agreed that quarterly financial statements will be prepared and submitted to GoM and IFAD as part of physical and financial Progress report. 10. Review of the 2014/2015 AWPB performance: The Mission reviewed actual performance for 10 months period to 30 April 2015 against the revised budget for 2014/2015. The overall performance is 54% and the mission commends the PTCT for this improved performance as compared with past. Table 1: 2014/2015 AWPB performance Review Revised 2014/15 AWPB Actual and Commitments Performance %age Categories MK'000 MK'000 MK' Motor Vehicles, Motor cycles & equipment 1,045, ,406 40% 2. Technical Assistance, Trainings, Workshops and Studies 605, ,437 54% 3A. Support for Adaptive Research 208,651 85,757 41% 3B. Support for Knowledge Management 45,825 1,732 4% 4A. Improved Agriculture Extension 1,810,137 1,337,415 74% 4B. Access to Key Agricultural Inputs 410,127 65,574 16% 5A. Incremental Costs 540, ,435 49% Total 4,665,894 2,500,756 54% 11. Review of the SoEs: The review of SoEs for eligibility could not be conclusively carried out. The bulk of the expenditure documents are in the programme districts and the next mission will ensure accommodation of an appropriate time table this important review. 12. Review of the Designated Account and the Operational accounts: The review indicates that DA allocation of USD 1.5 million is fairly accounted for as at 31 March As of this date, the combined cash position in the SPA and other programme accounts amounted to USD 591,994. Included in the reconciliation is WA 13 for USD 335,323 pending payment from IFAD and expenditure pending WA preparation and submission of USD 329,274. Another outstanding is an amount of USD 18,367 being the VAT payments made from the special account and claimable from the MRA. The other item is bank charges amounting to USD 25,032 claimable from the bankers of the District accounts. It was agreed that the VAT and bank charges will be followed up for payment by 31 July,

71 Technical Annex 3: Financial management report Table 2: Reconciliation of the Designated Account as at 31 March 2015 Item Description Value (USD) 1 Authorised Allocation 1,300,000 2 Balance in the Special Account 373,290 3 Balance in the Programme Account 218,704 4 Expenditure Pending WA 13 claim submission to IFAD 335,323 5 Expenditures Pending preparation of WA ,274 6 VAT recoverable from the GoM 18,367 7 Bank charges reversable by the banks 25,042 8 Total 1,300,000 B. Disbursement of IFAD Loan and Grant Disbursement. 13. The disbursement of IFAD Loan and Grants stands at 17% and is rated as unsatisfactory, given that in its 4 th year since effectiveness the disbursement is supposed to be at 51%. The combined IFAD Loan and Grant disbursement to 30 April 2015 is SDR 3.94 million or USD 5.82 million representing 14% of the combined Loan and Grant allocation of SDR 28.9 Million, including the Initial Deposit of USD 1.3 million. This status has been reconciled to the IFAD statements. However, the loan utilization, excluding the Initial Deposit is SDR 3.09 million, or USD 4.5 million, and represents utilization level of 11%. The mission has gone further to factor in WA 9-14 all totalling to USD 2.39 million or SDR 1.7 million equivalents, at the current exchange rates. Consequently, the projected utilization is estimated at SDR 4.8 million or 17% of the loan and grant leaving a balance of SDR 24.1 million or approximately USD 33.9 million at the current exchange rates. Table 3: IFAD Loan and Grant Disbursement as at 31 March 2015 Category Original Allocation Projected Utilisation Projected Balance SDR'000 SDR'000 %age USD'000 SDR'000 SDR'000 SDR'000 1 Vehicles, Motorcycles and Equipment % % 2 Technical Assistance, Trainings, Workshops and Studies % (178) 173% 3A Support for Adaptive Research % % 3B Support for Knowledge Management and Communication % % 4A Support for improved Agriculture Extension 8, % ,011 7,744 12% 4B Support for Access to Key Agricultural Inputs 1, % ,385 16% 5A Salaries and Allowances 60-0% % 5B Incremental Operating Costs % % 99 Unallocated 1,115-0% - 1,115 0% Sub-total 14,250 1,544 11% 1, ,394 11,856 17% 99Z Initial deposit Total 14,250 1,971 14% Disbursement up to WA 8 Pending WAs 9-14 % Projected Utilisation 14. IFAD Project Preparatory Facility The total disbursement for this facility was USD 600,000, of which USD 292, has been justified leaving a balance of USD 307, unutilised. The closure date of the grant was 30 September 2014 and has since passed and the Grant requires to be closed. The remittance of the unutilised amount of USD 307, has been submitted to the MOF for processing and finalisation. It was agreed that the remittance should made no later than 31 July C. Counterpart funds 15. This has been rated as satisfactory. The Financing Agreement require the GoM to provide counterpart financial support of up to USD 4.2 million to cover taxes, duties, salaries and other supporting services as may be required from time to time during the implementation life of the programme. As at 31 March 2015 the total contribution USD1.6 million or 38% of the allocation of USD 4.2 million was made including payment of salaries, taxes and rent. The mission commends the 65

72 Technical Annex 3: Financial management report GoM for this support. However, as of the date of the mission USD 18,367 in form of VAT is outstanding for collection from MRA. It was agreed that GoM will assist in speedy collection of the VAT amount by 31 July D. Compliance with loan covenants 16. This aspect has been rated as moderately satisfactory. The mission noted that not all programme staff have been assigned full-time to the programme as foreseen in the Financing Agreement. E. Procurement 17. Procurement Plan. Rated is rated as moderately satisfactory. The procurement plan document for 2014/15 with a total estimate of USD 8 million is fairly prepared with the requisite milestones spelt out. The key goods items included in the plan are 20 motor vehicles, desktop and laptops, furniture, motorcycles and bicycles, seeds and other planting materials with estimates of USD 1.84 million. The motor vehicles alone were estimated to cost USD 1.7 million. The services were planned to include the key Extension outsource contract with a combined total estimate of USD 3.6 million. However, the Plan created an excessive costs in motor vehicles, motorcycles, and office equipment. The costs were higher than the funds available in the expenditure category I by USD 71,000. The procurement plan was not also in agreement with the estimates in the Annual Work plan and budget (AWPB) nor harmonised with the funds available in the Loan and Grant Account. The mistake has been corrected now by reducing sharply the number of vehicles purchased and leaving only USD 71, Procurement Progress and Contract Management. Contracts for the Motor vehicles, Bicycles, Motor cycles and computers, and office furniture have been awarded, with some of the relevant goods already supplied and others in the process of supply. Some of the goods already supplied have already been paid for. The total awarded value of these goods; all procured in the 2014/15 has been corrected to USD 1.7 million, net of taxes and duty and all fundable from IFAD funds of the Loan and Grant. A funding gap of USD 71,000 remained above the available funds of USD 1.63 million. As for the services, contracts for USD 3.3 million have been awarded including the key Baseline survey and that for farmers extension services. The funding for these costs is available in the relevant expenditure category. It was agreed that the GoM takes over and resolve the financing gap of USD 71,000 resulting from the over procurement. 19. Strategic Way forward: Having more than exhausted the funds allocation for Motor vehicles, motor cycles, equipment, under category 1, procurement will now concentrate on the remaining services as planned in the Programme design. The TPCT should now evaluate the remaining services and make advance preparations including bids specifications and TORs as would be applicable. This will reduce the procurement lead time during the remaining period of implementation. 20. Audit. This aspect of Financial management is Rated as satisfactory. The statutory audit is up-to-date with the audit of 2013/14 having been carried out by the Auditor General of the Republic of Malawi. The auditor returned unqualified opinions on the 3 areas of SPA, Financial statements, and SoEs. The management letter review discloses lapses of failure to adhere to the internal control and laid down financial procedures. It was agreed that TPCT will ensure that all the management letter points will be followed up and corrective actions put in place. 66

73 Technical Annex 3: Financial management report Agreed action Responsibility Agreed date Extend the tenure of the TPCT by one year, including PS 15 June 2015 extension of the contracts of the staff on the basis of performance evaluation Resolve the financing gap of USD 71,000 PS 30 June 2015 Complete migration of financial transactions data into FC/Accountant 31 August 2015 TOMPRO and reconcile accordingly Adhere to GoM financial procedures in the expenditure FC/ Accountant Ongoing. payments as per audit recommendation Update the financial and Accounting procedures FC/Accountant 30 Sept Prepare and submit to IFAD quarterly financial statements FC/Accountant 30 June Follow up for settlement the VAT and bank charges FC/Accountant 30 June Remit to IFAD USD 307,921 as residue of the Project Preparatory facility Grant TPCT/MOF/MOAIR 31 July

74 Technical Annex 3: Financial management report Attachment A: Terms of reference for financial management and procurement expert Mr Godfrey Wanjohi, Financial Management and Procurement expert Mr Wanjohi will handle all matters related to the review of the fiduciary aspects of the RLEEP: financial management, disbursement, special account, procurement and audit. In particular he will be responsible for the following: A. Assess the Project Financial Management Arrangements a) review actions taken with regard to the project design document, government project report and approved AWBP; b) use the IFAD FMAQ as the basis to collect the relevant information to assess the strengths and weaknesses of financial management systems, internal controls and financial reporting systems relating to financial management and financial administration of project funds to confirm that they still satisfy IFAD s fiduciary requirements; c) test check sample internal controls, by system walk through to ensure that approved procedures are consistently being followed; d) review the functionality of the accounting system and the financial reporting system and propose remedial actions by the RLEEP where required; e) review sample Withdrawal Applications, and Statement of Expenditures to verify adequacy, completeness and validity of claims; f) review status of counterpart funding and check whether the Borrower made available financing proceeds to the RLEEP, as planned, in line with the Project Financing Agreement; g) prepare the current Summary Risk Analysis; h) review the fixed asset register ensuring all assets procured are properly recorded and accounted in the records of the project; i) review the operation of the project special/designated account accounts; j) review the implementation of actions on issues if any identified in previous missions and or financial reports; and k) review project compliance with all key financial and audit covenants contained in the financing agreement. B. Assess the RLEEP s Financial Performance l) compare planning and disbursement performance of the RLEEP and identify issues to be addressed in order to improve performance; m) review compliance, to date, with Financial and Audit Covenants; n) review the status of the audit log; o) review overall project financial performance by comparing expenditure to date, by component against original (or subsequent revised) approved plans; and p) prepare estimates of disbursements for balance of current financial year and for the next financial year. C. Procurement review q) assess project procurement processes and advice accordingly; r) carry out spot checks on past procurement and assess to the extent these adhere to Government and IFAD procurement rules; in particular, verify that the goods, services and works procured under the RLEEP correspond with the approved AWPB and procurement plan, in terms of quality and quantities. The expert shall review and advise on the tender documents and evaluation report for the following two procurement processes for which IFAD No Objection is pending; s) review the procurement plan and AWPB and make suggestions to improve its quality and planning and tracking tool; t) review the draft AWPB and procurement and make suggestions to improve its quality and planning and tracking tool; u) carry out spot checks on past procurement and assess to the extent these adhere to Government and IFAD procurement rules; 68

75 Technical Annex 3: Financial management report v) verify if the procurement processes followed the national and IFAD procedures with due diligence; and w) review the quality of contract management, including technical approval for payments, and maintenance of up-to-date Contract Monitoring Forms (CMFs). Deliverables and outputs: 1. Contribute relevant sections to the Aide memoire; 2. Contribute to the time-bound recommendations to enhance project implementation; 3. Ensure the compilation of Appendix 5 (Financial: Actual financial performance by financier; by component and disbursements by category); and Appendix 6 (Compliance with legal covenants: Status of implementation); 4. Contribute to the update of the Project Status Report (appendix 1); 5. Update the project Financial Management Risk Assessment (FMRA); and 6. Prepare a Technical Annex on specific aspects related to Financial Management and Procurement (precise topics to be agreed with the team leader at the onset of the mission) to be submitted 5 days after the mission s wrap up meeting. 69

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77 Technical Annex 3: Financial management report Attachment B1: Summary of Project Fiduciary Risk Assessment at Supervision Project # (SAPP) Implementing Agency: Ministry of Agriculture, Irrigation and Water Development (MoAIWD) Risk Assessment H/M/L Proposed Mitigation Inherent Risk M N/A Control Risks 1. Organization and Staffing H Not fully dedicated to the project. 2. Budgeting M 3. Funds flow & Disbursement Arrangements H Too many delays in the disbursement to the districts 4. Internal Controls L 5. Accounting H Using TOMPRO for accounting. 6. Reporting and Monitoring H Quarterly Accounts 7. Internal Audit M 8. External Audit M Overall Project Fiduciary Risk H=High, M=Medium, L= Low H Comments: The project is still in the process of migrating data into TOMPRO accounting software. So far they have been using Excel for accounting. This is a system that cannot guarantee accuracy and integrity of the bookkeeping. Therefore, the risk to FM is rated high until the migration process is completed. The other deficiency is lack of adequate experience on the part of the FM team that includes the FC, Counterpart Accountant and the Procurement Officer. The over procurement of goods over and above the available funds demonstrated critical inexperience in financial planning and monitoring. Until there are improvements in these aspects the risk to the FM must continue to be rated high. Completed by: G.M. WANJOHI Date: 27 MAY

78 Technical Annex 3: Financial management report Attachment B2: Financial Management Assessment at Supervision: Guidance Questionnaire 2 Country: Republic of Malawi Project Name: Executing Agency Loan /Grant ID: L-I-854 MW Sustainable Agriculture Production Programme (SAPP) CPM: Thomas Rath Reviewing Finance Officer/FMS: GMWANJOHI Date of this review: 27 May 2015 A. Inherent Risks Topic Risk Rating (H/M/L) Issues / Comments / Recommendations B. Control Risks 1. Organization and Staffing a. Adequacy of organizational structure to meet functional needs of the project. Although there is a team of 3 in number, the experience in Financial planning, management and monitoring is weak. H b. Availability of clear job description for key project positions, including fiduciary positions. M c. Adequacy of project financial management staff (numbers and skill) matching functional needs of project. H Numbers- Yes, skills no. d. Availability and adequacy of operating manuals and guidelines for staff. M e. Existence of a performance based evaluation system in place and timely completion of performance evaluation for all staff. M f. Adequacy of health insurance coverage for all staff (where applicable). H None g. Timely payment of social security fees (where applicable). N/A h. Staff adequately informed about IFAD s national and anti-corruption policy and relevant contact details. M 2. Budgeting a. Timely preparation and approval of AWPB. M b. AWPB in line with expenditure categories in Financing Agreement Schedule 2. H c. Financing sources and implementing agencies for each category in the AWPB are identified. H d. Linkage between AWPB and Procurement plan are identified (for cost estimate and activities). Check assumptions to support cost estimates. Test check high value items. H 3. Fund flows and Disbursements / Withdrawals a. Timeliness of funds disbursed by different sources (and co-financiers funding if applicable). M b. Timeliness of counterpart funds disbursed. M c. Efficiency of the funding channels. Timeliness and traceability of funds flows. M d. Efficiency of the funding channels for credit lines. Timeliness and traceability of funds flows, if applicable. N/A e. Special Account(s)/Dedicated Account(s) Management, Disbursements. Evaluation to be carried out in June The plan had cost estimates that were higher than the available funds. VAT eventually paid but there is always a delay 2 This questionnaire should be used as guidance for and in support of the Summary Project Fiduciary Risk Assessment at Supervision (Technical Annex 3, Attachment B1). As such, it may need to be adapted depending on the nature of the project expenditures and implementation arrangements. 72

79 Technical Annex 3: Financial management report Topic Risk Rating (H/M/L) i) Adequacy of the authorized allocation to ensure a smooth flow of funds H ii) Appropriateness of disbursement methods used L iii) Adequacy of documentary support for SOE disbursements, reimbursements, direct payments and Special Commitments. (refer to Appendix IV and complete, reflecting finding in rating). H iv) Timely preparation and accuracy of Withdrawal Applications M v) Authorization of WA preparation. L vi) Status on expenditures withdrawn from Special Account but not yet H claimed for replenishment (old cases to be noted) vii) Regularity of Special Account(s) monitoring and monthly reconciliations H signed by the project manager. Review and assess the reconciliations viii) Disbursement rate compared to the AWPB and whether satisfactory given the remaining implementation time. Provide comments as appropriate ix) Recovery of SA balances by loan closure N/A Not yet 4. Internal Controls a. Segregation of duties - are the following functional responsibilities performed by different units or persons: (i) authorization of a transaction (ii) execution of a transaction (iii) recording of the transaction; and (iv) custody of assets involved in the transaction. b. Clarity and adequacy of decision processes and sequence of events for control functions in project implementation reflected in the Financial Manual (or equivalent there-of). c. Adherence to Financial Manual. L H Issues / Comments / Recommendations Inadequate Increase Requested The bulk of the documents are in the districts and the service provider. Not fully reconciled. Reconciliation carried out only when a WA is being submitted. For 2015 it currently at 57%. The bulk of the expenditure is procured MVs, Motor Cycles, Computers and Equipment, as well as the consultancy for extension. The beneficiary activities are minimal. Using GoM systems which are rigorous. Require update. No review since H project inception. A few cases of non-adherence as detailed in the 2013/14 M Management letter. d. Effectiveness and efficiency of internal controls over inflows of funding sources other than IFAD. L e. Adequacy of contract management (use of contracts register and monitoring form) and filing there-of. H f. Effectiveness and efficiency of internal controls over expenditures (full cycle from commitment, payment, receipt of good and services, approval of payments, classification, etc.) L Using GoM systems. g. Documentary evidence to confirm delivery and acceptance of contracted goods, works or services. L h. Physical controls over cash, documents and records. Adequacy of filing systems. Is the petty cash subject to monthly reconciliation as well as surprise checks; custody of cash box and control of keys. M i. Adequacy of physical management of cash. N/A j. Timely payment to suppliers and consultants. L k. Eligibility of expenditures with respect to Financing Agreements. M l. Legality/eligibility of advances from project funds and timely justification for use there-of. M m. Compliance with financial management covenants in the Financing Agreements and LTB. M n. Adequacy of up-to-date record keeping for fixed assets and inventories. o. Adequacy of controls concerning project assets including: i) Vehicle and other assets management (are assets property tagged, is a physical inventory count done on a regular basis?) ii) Fuel management (do drivers maintain a log book?) iii) Travel authorisations (incl. DSA paid to staff) N/A p. Adequacy of vehicles and assets insurance. L 73

80 Technical Annex 3: Financial management report Risk Topic Rating (H/M/L) q. Workshops: i) Availability of list of participants ii) DSA paid to participants iii) Receipts for workshop expenditure M r. Adequacy of controls and authorization process for use of funds (payments, transfers, Cash/Bank balance management) / and other operational accounts non-special account. M s. Banking arrangement and controls (reconciliation of bank statements with financial accounts). M t. Existence of a proper IT support unit in place. M 5. Accounting a. Basis of accounting (cash, accrual) and whether accounting standards are in line with IFAD s requirements (e.g. IFRS/IPSAS/IPSAS cash). L IPSAS b. Adequacy and reliability of accounting system, (is double entry accounting used, specify software used, is budget data entered into the accounting system, can the accounting system produce regular automated financial reports?). H b. Recordkeeping (including documentation and filing/archiving) L c. Fixed assets register maintained and reconciled (Sample and physical check). M d. Adequate documentation and controls for Information Systems, including documented accounting procedures, backup of financial records, integration of all sub-systems. H Issues / Comments / Recommendations To be changed to TOMPRO. Still Excel. To be validated upon completion of the data migration to TOMPRO accounting software. e. Adequacy of chart of accounts for project accounting purposes H Not. See d. above f. Timeliness of recording transactions, regularity of performance and approval of reconciliations, controls on erroneous recordings. H g. Appropriate/adequate accounting and reporting of counterpart funds contributions (incl. tax and tax exemptions) as well as beneficiary contributions. M 6. Financial Reporting & Monitoring a. Completeness, accuracy, usefulness, and timeliness of financial reports. b. Interim FM reports and linkage to progress reports - timely preparation, submission to IFAD. c. Preparation of reports showing actual vs budget income/ expenditure and AWPB execution rate. d. Follow up of previous aide-memoirs fiduciary recommendations. e. Reasonable alignment between disbursement rate of recurrent versus investment cost categories. 7. Internal Audit a. Existence of Internal Audit arrangements. M b. Adequacy of internal audit arrangements (organization - staff capacity). M c. Adequacy of internal audit scope of work and quality of reports. M d. Assessment of matters raised in audit reports. M 8. External Audit 3 a. Adequacy of scope and ToR. L b. Adherence to ToR. L c. Timeliness of audit report. L d. Quality of audit. L Implementation of audit recommendations/agreed action plan in place to e. address these. L H H M H The success is dependent on conclusive migration of the data into TOMPRO accounting software. For the moment the risk must be rated high. Using the GoM accounting systems and procedures. 3 Refer to IFAD audit review. 74

81 Technical Annex 4: Monitoring, evaluation and knowledge management Technical Annex 4: Monitoring, evaluation and knowledge management Introduction 1. The Monitoring an Evaluation system (M&E) of SAPP is still underdeveloped with focus only on the outputs and activity indicators. The system is clearly weak in terms of following the outcomes of the different activities and monitoring on the performance of lead farmers. Although at this stage it might be early to capture outcomes/impacts, yet there should be a clear plan on the next steps that should be taken in order to work on measurements of those two levels. 2. In the following key issues related to the M&E system will be highlighted with emphasis on the focus needed by the project. The role of M&E in IFAD projects 3. The following table summarizes the expected M&E tasks during the main implementation stage and phasing-out and completion in IFAD projects life cycle. The focus of the project at this stage will be on the phasing out and completion stage in which the project will be working on delegating the implementation responsibilities to its partners. Phase Main implementation Phasing-out and completion Tasks Ensure information needs for management are met. Coordinate information gathering and management. Facilitate informal information gathering and communication. Support regular review meetings and processes with all implementers. Prepare for supervision missions. Prepare for and facilitate the annual project review. Conduct focused studies on emerging questions. Communicate results to stakeholders. Prepare annual progress reports. Assess what the implementers can do to sustain impact and sustain M&E after closing down - and implement these ideas. Hold workshops and do field studies with key stakeholders to assess impacts. Identify lessons learned for the next phase and/or other projects. Planning 4. The main planning tool for SAPP is the Annual Work plan and Budget (AWPB) which is prepared on an annual basis covering the fiscal year 1 July- 30 June. The AWPB is submitted to IFAD on an annual basis for approval 60 days before the end of fiscal year. However, for the latest AWPB for the fiscal year 2015/2016 a draft was just prepared by the project and submitted to IFAD for review. This delay in the preparation of the AWPB is an indication of the issue of the weakness in the M&E system. However, the AWPB is comprehensive and well presented in terms of capturing the activities to be implemented and expected outputs during each quarter. Yet, the AWPB is too lengthy and there need to be more focus on presentation of numbers in Tables and figures rather than in the narrative section. 5. A new format for the AWPB will be provided for the programme as part of the IFAD country M&E framework. 75

82 Technical Annex 4: Monitoring, evaluation and knowledge management M&E Activities The figure below illustrates SAPP Communication and Reporting Map Responsible Persons: Lead Farmers; Community Extension Workers Output: Activity Records/Reports Due: Monthly on 2nd of next month Responsible Persons: Field Coordinators Outputs: Monthly Progress Report Due: Monthly on 2nd of next month Monthly- due: 20 th every month) Responsible Persons: Zone M&E Officers Outputs: Monthly Progress Report, IPTT Due: Monthly on 6th of next month Responsible Persons: Zone Managers Outputs: Quarterly progress Report, IPTT Due: Quarterly on 8 th of 1 st Month of next quarter DEC Responsible Persons: SAPP Programme Manager & M&E Manager Outputs: SAPP Quarterly Program Progress Report, IPTT Due: Quarterly on 14 th of 1 st Month of next quarter TLC BOARD OF DIRECTORS SAPP SECERTARIATE Data collection is conducted by the extension worker in the Agriculture Extension Development Offices (AEDO). The programme have more than 600 AEDOs who use a standard form for data collection of activities/outputs. At the 46 Extension Planning Area (EPA) the aggregation of the data is done using laptops. Quarterly spot checking visits are conducted for the entire programme activities. Progress review meetings are conducted on regular basis to discuss the implementation progress. It is planned under the AWPB 2015/2016 that quarterly review meetings will be conducted at national, Agriculture Development Division (ADD), district and EPA level to promote lesson learning and adaptation to improve project performance for all the 25 Subcomponent counterparts and other stakeholders. Moreover, a national and international study tours will be conducted to promote knowledge sharing, and learning. Monthly progress reports are submitted by the field coordinators in addition to monthly progress reports from zone managers. Bi weekly meetings are conducted by the AEDC with the AEDOs at the EPA level. 76