Africa

Malawi

SDG Finance - Catalytic Investment

Build Malawi Window: A Specialized Structured Blended Finance Vehicle for Agribusiness

Challenge

Malawi records one of the lowest rates of investment in Africa with an average of only 15 percent of GDP invested from 2000 to 2018, compared to 24.5 percent in Tanzania and 34.7 percent in Zambia. Such an environment obstructs small and medium enterprises' (SMEs) access to finance. This means that many businesses run by women and other vulnerable groups are unable to grow, and Malawi's economy is unable to become inclusive. Malawi’s low rates of impact investing are primarily due to the relative infancy of the market, particularly for non-Development Finance Institution investors, coupled with falling levels of Foreign Direct Investment.

Innovation

The programme will reduce poverty, hunger, and inequality by creating jobs and supporting small businesses in the country’s severely undercapitalized agricultural sector. A structured blended finance vehicle, the first of its kind in Malawi, will aim to mobilize US$35 million. The Fund will invest patient capital. A technical assistance facility will help source an investable pipeline, assist businesses to improve quality of their growth and SDG impact, and reduce associated risks and costs.

SDG Impact

The Joint Programme will work to end poverty and hunger by increasing investment in agriculture and other manufacturing and service supply-chains, as well as increasing productivity within these supply-chains through technology and innovation; and achieving gender equality by supporting business where women are significantly represented in boards, management, staff, suppliers, or buyers. Targets for the programme include: 3,000 jobs (30% minimum for women and youth) created; 75,000 small-scale producers integrated into investees supply chains; participating small-scale producers’ income increased by 30%; expanded fiscal space with aggregated income taxes of  $19.3 million; and 15 supply chains streghtened.

Quick facts

UN Agencies:
  • UNDP
  • UNCDF
  • FAO
National Partners:
  • Ministry of Trade – Principal Secretary
  • Old Mutual – Head of alternative Investment
  • NICO Asset Managers – Head of Investments
  • FCDO – Private Sector Development Advisor
SDG Finance - Enabling Environment

Strengthening Malawi’s Financing Architecture at National and Local Level

Total funding allocated
SDG Finance - Enabling Environment
US $ 995100
Co-funding by UN agencies
SDG Finance - Enabling Environment
US $ 40000
#IntegratedFinancing
#Accountability
#SocialServices

Brief Description

This Joint Programme seeks to strengthen the Malawi’s financing architecture to accelerate implementation of the SDG aligned Malawi Growth and Development Strategy III in two parallel and coordinated ways. The two streams of intervention, the top-down establishment of Malawi’s INFF and the bottom-up strengthening of the local level Public Finance Management, service delivery and financial accountability systems, will converge and connect in the INFF Monitoring and Evaluation Framework.

Approach

First, the programme establishes an Integrated National Financing Framework (INFF) which will be used to mobilize and catalyse resources and investments, public and private, to fund its development plans and deliver the SDGs. More importantly, the INFF will provide the Government with a clear assessment set of options and of policy interventions to finance the unlocking of the country’s development potential. Second, the programme will seek to improve the financing structures supporting essential social services at local level by investing in evidence generation on the costs and funding gaps.

Quick facts

Total budget:
US $ 40,000
UN Agencies:

UNDP, UNICEF

National Partners:

MOFEPD, NLGFC, NPC, MOLGRD

Duration:
1 Jul 2020 - 30 Jun 2022

Financial Information
Integrated Policy

Social Protection for the SDGs in Malawi: Accelerating Inclusive Progress Towards the SDGs

Brief description of the programme

This Joint Programme (JP) aims to support the Government of Malawi (GoM) to adapt the national social protection system to meet emergency food needs and reduce the vulnerability of those most at risk of food insecurity by 2022, while strengthening the social protection system for all vulnerable households across the lifecycle. The programme combines advancing an innovative Shock-Sensitive Social Protection (SSSP) prototype with reinforced financial structures and the transformation of existing policies into legal frameworks to enhance the social protection system to be more robust, comprehensive, and sustainable, leaving no one behind.

Approach

The JP leverages the expertise of three implementing UN agencies to accomplish its targets. UNICEF, WFP, and ILO have in-country and regional expertise in providing direct social protection system implementation and technical assistance, including SSSP, financing, systems strengthening, and policy development. Together, the three UN agencies are well placed to support the advancement of national strategies and policy frameworks in Malawi.

To ensure integration into existing frameworks, the three JP components are aligned to the pillars of the Malawi National Social Support Programme II 2018-2023 (MNSSP II), catalysing progress in support of the GoM’s vision on social protection. Furthermore, the programme directly contributes to the 2019-2023 United Nations Sustainable Development Cooperation Framework (UNSDCF), and ensures links to ongoing social protection activities within PROSPER (a DFID-funded SSSP Joint UN Programme focused on resilience building) and the Inclusive Growth, Social Protection, and Jobs Programme (funded by Irish Aid).

For long term sustainability, the JP leverages and strengthens the existing social protection MNSSP steering and technical committees and working groups. Internal UN coordination is led by the Resident Coordinator, with WFP as the convening agency. Daily operational and programmatic coordination is managed by the Joint Coordination Unit, consisting of members from each participating UN agency and the Resident Coordinator’s Office.

Target groups

Women, children, persons with disabilities, older persons, workers.

 

Quick facts

Total budget:
US $ 1,999,937
UN Agencies:

WFP, ILO, UNICEF

National Partners:

Ministry of Finance, Economic Planning, and Development; Department of Disaster Management Affairs; Ministry of Population Planning and Social Welfare; Malawian Parliament

Duration:
January 1, 2020 to February 28, 2022 (26 months)

Financial Information