Central region PO members discuss during the training
Producer Organizations (farmer groups) which qualified to receive matching grant support from the Agricultural Commercialization (AGCOM 2) Programme have received training in bookkeeping, accounting, and procurement procedures for them to be equipped with practical skills to prudently manage finances and ensure accountability in the implementation of their respective sub-projects.
The trainings are part of support, which AGCOM 2 will be providing to farmer groups in addition to other assistance such as matching grants, Last Mile Infrastructure (LMI), Technical Assistance (TA), Malawi Bureau of Standard certification, and land registration certificates.
The training in in bookkeeping, accounting, and procurement will assist members and officer bearers in POs such as chairpersons, secretaries, treasurers, and sub-committees to understand their roles and responsibilities to ensure that AGCOM matching grant resources are utilized effectively and efficiently.
Commenting on the development, AGCOM 2 Institution Development Specialist, Christen Malaidza, says the training also empowers the PO committees with tips on resource mobilization to the farmer organizations to ensure that they manage to raise both the 10% cash and in-kind contribution within the required timeframe.
Malaidza explains, “As per requirement in the grant agreement, each approved PO is obliged to contribute at least 10% cash contribution to access the grant.”
He adds, “This training empowers the PO committee members with skills regarding the step-by-step standard procedures for book-keeping, accounting. On the other hand, the training also covers tips on resource mobilization because some of the POs struggle to raise their matching contribution.”
Martin Tembo is a member of Kuwala Cooperative from Lilongwe who has attended capacity building training from AGCOM 2 Programme. He says, “I commend AGCOM 2 for organizing this training. It will greatly assist our coperatives to improve in the way we manage procurement and finances.”
Tembe further explains, “The training has been an eye opener. Previously we were not recording anything regarding our incomes and expenditures. But through this training, we have been taught that it is very important to keep financial records.”
Tembo added that the procurement procedures learned during the training will assist to safeguard sub-project financial resources.”
Ntcheu district agribusiness officer Francisco Sadyamtambe commends AGCOM 2 for the training, saying it will help the farmers to properly record their financial activities and be able to track if they are making profits.
He says, “Recording financial activities is very important in farming business. The records assist the farmers to track their income and expenditure which later help them know if they are making profits or losses.”
Assistant Director of Trade in the Ministry of Trade and Industry Wiskes Nkombezi underscores the importance of the training.
Nkombezi explains, “Good financial management is very key and strategic in the management of businesses such as cooperatives. The skills acquired will assist the farmer groups grow financially and properly manage the matching grants they are receiving from AGCOM.”
The training centers on the topics such as definition of book keeping and accounting, objectives of book-keeping and accounting, source documents, nature and preparation, finance management procedures, and procurement procedures for goods, works and services under AGCOM 2 matching grants.
The training targets three members from each of the POs, particularly those in key leadership positions from the executive committee, finance committee, supervisory committee, and procurement committee.
Agribusiness Officers and AGCOM 2 Technical Support Implementation Support (TIS) Brokers also attend the training for them to train the other members of the POs in their respective districts.
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