Maness Ngoma Nkhata presented on Lakeshore Agro-Processors Enterprise (LAPE) in Malawi, which focuses on youth participation in agribusiness. LAPE works with over 10,000 smallholder farmers, most of whom are youth and women. It provides loans for farm inputs, extension services, and market access for crops like soybeans, sunflowers, and cassava. LAPE also creates jobs in agro-processing, hosts university interns, and provides training to develop agri-entrepreneurship skills. However, LAPE faces challenges like limited access to capital and land for youth and women. Future plans include new processing equipment, business incubation centers, and expanding programs to engage

1. Brussels Briefing 49:
Youth in agribusiness: shaping the future of agriculture
Presentation
Maness Ngoma Nkhata, Lakeshore Agro-
Processing Enterprise (LAPE), Malawi
“Youth Participation in agro-processing in Malawi”

2. YOUTH IN AGRIBUSINESS:
A CASE STUDY OF LAKESHORE AGRO-PROCESSORS ENTERPRISE(LAPE)
MANESS NKHATA
Managing Director, LAPE
E-mail: lape.factory2007@gmail.com
maness.nkhata2013@gmail.com
Cell: +26599005333
MAY, 2017
LAKESHORE AGRO-PROCESSORS ENTERPRISE
(LAPE)

3. OUTLINE OF PRESENTATION
 INTRODUCTION
 BUSINESS FOCUS
 HOW LAPE INVOLVES THE YOUTH?
 MAIN ACTIVITIES
 APPROACH TO ENGAGE YOUTH AND WOMEN
 ADVANTAGES OF WORKING WITH THE YOUTH AND WOMEN
 CHALLENGES
 FUTURE PLANS
 YOUTH AGRI-ENTREPRENEURSHIP FOR JOB CREATION (YA-
JC) PROGRAMME PLANS

4. INTRODUCTION
…..MALAWI UNEMPLOYMENT STATISTICS….
Youth Unemployment in Malawi
(as a percent of total labour force aged between 15-24)
Source: ILOSTAT
It’s rising

5. INTRODUCTION
 Malawi has over 1.3 million young people who are unemployed
(NSO IHS3,2012)
 Unemployment rate is in Malawi at 18.9%.
 Of those that are unemployed, 25% are young women and 12.5%
are young men (ILO,2013).
 Main sources of youth employment in Malawi:
 47.2% in subsistence agriculture
 27.4% in retail trade
 10.3% in manufacturing (ILO, 2013).

6. INTRODUCTION
 The Government of Malawi has implemented policies to support
technical, entrepreneurial and vocational skills development for
the youth through the establishment of institutions e.g. TEVETA,
YEDEF, SMEDI.
 Evaluations of programmes of some of these institutions have
shown that they have had no impact on overall labour market
outcomes (AfDB, 2014).
 None of these institutions focuses on transforming the
subsistence nature of agriculture to make it a key source of
gainful employment to youthful job seekers.
 LAPE therefore focuses on filling in these gaps so as to create
employment opportunities for the youth.

7. LAKESHORE AGRO-PROCESSORS
ENTERPRISE(LAPE)
 Registered youth owned agro-processing enterprise.
 Started in 2007
 Located in Chitipi Trading Centre, Lilongwe City.
 Established on 1.5 ha of its land along the Lilongwe-Mchinji road
in Chitipi.
 Works with rural farmers as business partners and not
beneficiaries
 Uses innovative and self-sustaining contract farming models in
soybean, sunflower, groundnuts and cassava production

8. BUSINESS FOCUS SINCE 2007
SPECIFIC OBJECTIVES
i.To champion value addition of local agricultural commodities using efficient
processing technologies.
ii.To supply high quality agro-processed products at fair and competitive price.
iii.To transform rural farmers into commercial producers through business
partnership contract farming model.
iv.To pioneer youth agri-business entrepreneurship through agro-processing
incubation services.
v.To increase and diversify income for rural youth and women through creation of
off-farm jobs.
SPECIFIC OBJECTIVES
i.To champion value addition of local agricultural commodities using efficient
processing technologies.
ii.To supply high quality agro-processed products at fair and competitive price.
iii.To transform rural farmers into commercial producers through business
partnership contract farming model.
iv.To pioneer youth agri-business entrepreneurship through agro-processing
incubation services.
v.To increase and diversify income for rural youth and women through creation of
off-farm jobs.

9. ORGANISATIONAL STRUCTURE OF
LAPE

10. HOW DOES LAPE INVOLVE WOMEN AND
YOUTHS?
 Deliberate targeting of women and youths to register as our
business partners.
 Provision of farm inputs loans (certified seeds, inoculants,
herbicides) on contract farming basis.
 Using LAPE extension officers to provide GAP services to the
youth and women.
 Hosting university interns to expose them to agribusiness
and entrepreneurship.
 Provision of business, entrepreneurship and leadership skills
training to youth and women business partners.
 Offering a ready market for farm produce using signed
purchase agreements.

11. MAIN ACTIVITY 1: SUPPORTING YOUTH AND WOMEN TO
INCREASE CROP PRODUCTIVITY
1. Mobilising youth and women into crop
production associations:
 Mkanda Soybean Producers Association
– 2,400 members; 54% women; 30%
youth.
 Kakoma Estate Sunflower out-grower
scheme – 3,411 members; 60% women;
40% youth.
 Mikute Cassava Producers Association -
4,290 members; 35% women; 55% youth.
2. Working with youth and women as ‘business
partners’ and not ‘beneficiaries’:
 Revolving fund farm input loan for
improved seeds, inoculants, chemicals
and herbicides.
 Extension services using Lead Business
Partner Model.
 Training on Good Agriculture Practices
(GAP).
1. Mobilising youth and women into crop
production associations:
 Mkanda Soybean Producers Association
– 2,400 members; 54% women; 30%
youth.
 Kakoma Estate Sunflower out-grower
scheme – 3,411 members; 60% women;
40% youth.
 Mikute Cassava Producers Association -
4,290 members; 35% women; 55% youth.
2. Working with youth and women as ‘business
partners’ and not ‘beneficiaries’:
 Revolving fund farm input loan for
improved seeds, inoculants, chemicals
and herbicides.
 Extension services using Lead Business
Partner Model.
 Training on Good Agriculture Practices
(GAP).

12. MAIN ACTIVITY 2: PROCESSING OF SOYBEAN, SUNFLOWER AND
CASSAVA
1. Providing market for raw cassava,
soybean and sunflower
Income to farmers/transporters/wage
earners
2. Improving quality of processed products
 Value addition
 Packaging
 Standards
3. Expanding processing capacity to offer
good market to farmers
Installation of new processing machines
4. Providing permanent and temporary jobs
for youth and women
 Members of staff (52% female)
 Temporary workers (80% women)
 Hosting university interns
1. Providing market for raw cassava,
soybean and sunflower
Income to farmers/transporters/wage
earners
2. Improving quality of processed products
 Value addition
 Packaging
 Standards
3. Expanding processing capacity to offer
good market to farmers
Installation of new processing machines
4. Providing permanent and temporary jobs
for youth and women
 Members of staff (52% female)
 Temporary workers (80% women)
 Hosting university interns

13. MAIN ACTIVITY 3: DEVELOPING YOUTH AGRI-
ENTERPRENEURSHIP SKILLS
1. Provides land to youths and women
who do not have land for out-grower
scheme with Kakoma Estate.
2. Provides ready market for youth and
women who produce cassava, soybean
and sunflower.
3. Provides opportunity for interns to be
exposed to agro-processing to develop
their entrepreneurship interest and
skills.
4. Provides agri-business incubation
services so that the youth and women
become entrepreneurs.
5. Supports tree seedlings production as
a business for youth and women to
contribute to climate change
mitigation.
1. Provides land to youths and women
who do not have land for out-grower
scheme with Kakoma Estate.
2. Provides ready market for youth and
women who produce cassava, soybean
and sunflower.
3. Provides opportunity for interns to be
exposed to agro-processing to develop
their entrepreneurship interest and
skills.
4. Provides agri-business incubation
services so that the youth and women
become entrepreneurs.
5. Supports tree seedlings production as
a business for youth and women to
contribute to climate change
mitigation.

14. DRIVERS TO SUCCESS FOR LAPE
 Using already existing groups through ADCs.
 Involving other stakeholders, e.g. Ministry of agriculture,
gender, trade, religious organization, etc.
 Using intensive public awareness campaign.
 Provision of support through farm inputs loans and extension
services.
 Using success stories from peer business partners that
previously worked with LAPE.

15. WHY LAPE WORKS WITH THE WOMEN AND
YOUTH?
 Good recovery of farm inputs loans – high repayment rates –
over 75% per season.
 Stability of women and youths groups – maintain the groups
over seasons.
 Women and youth are dedicated and hard working in farms
with low default rates.
 High cooperation to implement new GAP and adopt new
technologies.

16. CHALLENGES
 Cultural norms and practices that tend to underrate women and
youth.
 Low contribution of women and youth during meetings -
passiveness.
 Limited access to factors of production such as land, capital,
technology, etc by women and the youth.
 Provision of handouts by other stakeholders in the same groups
which discourages others to adopt business approaches.

17. CHALLENGES
 Limited capital for LAPE to:
 Invest in large processing equipment
 Expand the revolving farm input loans
 Expand the internship programme
 Low production capacity to meet demands of large customers
o Current production is 5 metric tons of HQCF per month Vs at least
50 metric tons per month which is imported by large customers

18. FUTURE PLANS TO GET LAPE TO NEXT
LEVEL
 Procurement of flash dryer
o Create 50 direct jobs and over 200 indirect jobs
o Increase intake of interns hosted from 20 to 50 per year
 Establish incubation centres
o Equip youths with entrepreneurial skills
o Provide youths with capital to start up their business
 Establishing Cooperative Development Fund (36 months)
o To sustain activities of business partners

19. YOUTH AGRI-ENTREPRENEURSHIP FOR JOB CREATION
(YA-JC)
PROGRAMME PLANS
 Reorient 10,000 youth agri-entrepreneurs towards more
engagement of commercial agriculture and market oriented value
addition as sources of gainful employment.
 Provide agribusiness incubation services to 10,000 youth agri-
entrepreneurs so as to create gainful employment in commercial
crop and livestock farming and agro-processing

20. YOUTH AGRI-ENTREPRENEURSHIP FOR JOB CREATION
(YA-JC)
PROGRAMME PLANS
 Identify, test and promote at least 5 viable agribusinesses value
chains with short time payback periods for commercial upscaling
by youth agri-entrepreneurs.
 Establish at least 5 viable strategic alliances and partnerships
among key stakeholders in the value chains of interest to the youth
agri-entrepreneurs.
 Create independent youth agri-enterprises that will commercialize
the production, processing and marketing across the value chains
of cassava, soybean, sunflower, pigeon peas, organic horticultural
crops, bee keeping, poultry, goats and other non-traditional small
stocks.

21. INTERNS AT SOYBEAN FARM IN MCHINJI
21

22. INTERNS AT A SUNFLOWER FARM IN
KASUNGU
22

23. LAPE WITH CASSAVA FARMER

24. CASSAVA PROCESING AT LAPE

25. UNIVERSITY INTERNS AT AFRICAN UNION
TRADE FAIR

26. UNIVERSITY INTERNS AT AFRICAN UNION
TRADE FAIR

27. NEW COOKING OIL FACTORY BEING
CONSTRUCTED

28. NEW COOKING OIL FACTORY BEING
CONSTRUCTED

29. THANK YOU FOR YOUR
ATTENTION