Malawi is a least developed country (LDC) with a predominantly rural population engaged in
agriculture. The agricultural economy is dominated by small-scale farms (tended by people
known as ‘smallholders’) that produce commodity crops (mainly tobacco, coffee and cotton)
and food for subsistence (maize, pulses, roots and tubers). Most smallholders cultivate less than
one hectare. Poverty is deep and widespread across the land. As a result of their weak asset base,
low technology adoption, limited land and labour constraints, the majority of rural households
are highly vulnerable to shocks, whether generalized (such as drought) or household-specific
(such as death). This weak resilience has hindered the ability of smallholders to move out of
poverty and of the country to develop rapidly. Despite these structural impediments, there is now
quantifiable evidence that measures intended to reduce smallholder vulnerability have begun to
pay off, resulting in a decline in relative and absolute poverty. The benefit seemingly extends
to all strata of poor people in Malawi, in urban and rural areas. Strengthening small farms has
contributed towards rapid economic growth within the agricultural sector and broader economy,
while at the household level it has led to improved food security as well as asset accumulation
(cash, livestock and durable goods).