Return on investment of the international potato center-led seed system interventions in Malawi

Abstract
With 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 in projects they implement. In response to the above need, this study
evaluated the return on investment of seed sector interventions implemented by the International
Potato Center in Malawi with the financial support of 3.425 million Euros from the 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 return on investment. Results revealed positive returns on
donors’ investments over the project's lifespan. The net project worth was estimated at US$ 66.6
million when net benefits are discounted by 6% and US$ 71.8 million when net benefits are
discounted by 12% over 23 years project benefit lifespan (2007 to 2030). The basic return on
investment found a US$ 6 to US$ 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.

Author

Florette Tsuanyo Feukeng, David Jakinda Otieno, Srinivasulu Rajendran, Paul Demo, Monica
Parker