Return on investment of the International Potato Center–led seed system interventions in Malawi

Abstract

AbstractWith declining funding in agricultural research and development coupled with tremendous pressure from different stakeholders, it is now essential for research institutes to demonstrate the return on investments (RoIs) in projects that they implement. In response to the above need, this study evaluated the RoI of seed sector interventions implemented by the International Potato Center in Malawi with the financial support of 3.425 million euros from Irish Aid, from 2007 to 2017. The project interventions evaluated in this study were seed selection, seed multiplication technologies, and potato (Solanum tuberosum) varieties. The study used the economic surplus model to measure monetary benefits realized by the project, while a cost–benefit analysis was employed to estimate the RoI. Results revealed positive returns on donors’ investments over the project's lifespan. The net project worth was estimated at $66.6 million when net benefits are discounted by 6% and $71.8 million when net benefits are discounted by 12% over 23 years project benefit lifespan (2007–2030). The basic RoI found a $6 to $8 return considering a 6% and 12% discount rate, respectively, for every dollar invested. Despite these positive results, further investments are needed in the seed production system for the early seed generations. Effective regulatory interventions on seed quality assurance and continuous awareness creation efforts are required to encourage farmers to use the best seed production methods.