Modern Farming Technologies (MFT)

What is MFT's mission?

Their mission is to transform smallholder agribusiness and create models of farming that will enable people, particularly women, to grow good quality crops and to address issues of land rights, unpredictable weather patterns and poor market access at the same time.

What types of services does MFT provide?

MFT takes a four-stage approach to their work with smallholder farmers: 

1. To support farmers to grow a cash crop to bring a cash income into the household, often for the first time. 
2. To provide irrigation, allowing two crops per year to be grown and pushing up household incomes. 
3. To provide polytunnels, particularly for women farmers, to enable year-round growing and, therefore, the potential for a year-round income. 
4. To develop chilled produce storage, crop processing and crop handling facilities to reduce post-harvest losses, add value to the crops, and push incomes up even more. 

In an attempt to ensure sustainability and enable farmers to earn their own living and retain self-respect, MFT primarily operates a rent-to-own model. And the two principal products they offer farmers under this rent-to-own scheme are solar-powered water pumps (FuturePumps) and greenhouses (Polytunnels).  

In both cases, as part of the rent-to-own contract the farmer has with MFT, the farmer sells all of their produce to MFT at a pre-arranged price. This agreement not only provides a guaranteed market to the farmers at the end of the farming season, but it also provides some protection to MFT who deducts the farmers’ loan repayments from the sale of the products. 

How much interest does MFT charge?

MFT does not charge interest on their products, nor do they ask for collateral. Instead, they add a mark up to the price of the equipment they offer on a rent-to-own basis, and they ask for an upfront 50% deposit.

Does MFT provide any training?

Alongside the supply and installation of the pumps and greenhouses, MFT offers a full package of support. This includes: 

• The supply of high-quality seeds or seedlings 
• Farm extension services throughout the whole crop cycle including regular farm visits 
• Training in harvesting and supply of harvesting crates 
• A 10-year parts and labour warranty for the FuturePumps and two years for the Polytunnels. 

Where can I find out more information about MFT?

Further information about MFT is available from the organisation’s website here. You can also find out more about Malawi Fruits here.

*PAR30 is a commonly used metric that provides an insight into the quality of an MFI's loan portfolio, which is generally its major asset and therefore its greatest source of risk. It is computed by dividing the amount of delinquent loans greater than 30 days over the total amount of the loan portfolio.

Sources: *World Bank **United Nations Development Programme ***World Health Organisation ****World Population Review