Increasing income and employment in rural areas through infrastructure and financing III (MICF)

active

The aim of the programme is to contribute to increasing employment and income, particularly for poorer sections of the population in rural areas of Malawi, along selected value chains. The FC project is already supporting the Malawi Innovation Challenge Fund (MICF), which is being implemented by the United Nations Development Programme (UNDP), in its third phase. For the first time, the so-called Growth Accelerator (GA), another UNDP financing instrument, is being added. The MICF provides private companies with additional grants (matching grants) to implement inclusive and innovative business models. The prerequisite is that they have a positive social or environmental impact - for example, when small farmers are included in the value chains, particularly the poor, women and young people benefit, and they also have the potential to reduce Malawi's dependence on imports and contribute to export promotion. The companies must contribute at least 50% of the investment amount from their own or third-party funds (e.g. through loans). Since 2014, nine MICF financing rounds have been set up, promoting innovative business models in the areas of agriculture (including irrigation), production, logistics, financial sector development and, most recently, tourism; four rounds with a total of 23 business models were supported with FC funds. The Growth Accelerator works according to the same model, but is aimed at smaller companies that are still in the start-up phase. The own contribution to be made is lower here (30%). In order to help the Malawian economy cope with the corona pandemic and its consequences, special COVID windows were set up at very short notice in 2020 together with UNDP within the framework of the MICF and the GA.