Malawi Third Social Action Fund (MASAF 3) APL II (LDF Mechanism)

closed

The objective of the Second Phase of the Adaptable Program Lending for the Third Social Action Fund (MASAF 3) - (Local Development Fund Mechanism) for Malawi is to improve the livelihoods of poor households within the framework of improved local governance at community, local authority, and national levels. There are three components to the project. The first component is the community livelihoods support fund. This component will have two sub-components implemented through the Local Development Fund (LDF) to finance: (a) public works sub-projects under the Local Authority Fund (LAF); and (b) investments for improving functionality of existing facilities and creation of opportunities for community savers and entrepreneurs to increase their participation in Local Economic Development under the Community Fund. The second component is the Local Authority Capacity Enhancement. It will focus on support for the development of a comprehensive framework to address capacity needs for local authorities in the effective management of grants they are already receiving, performing the functions allocated to them under this project, and preparing them to perform anticipated responsibilities as devolution proceeds and more resources are available under the LDF or any other longer-term Government of Malawi (GoM) grant arrangement. It will systematically assess current capacities and establish capacity benchmarks within government systems for regular assessments, provide capacity building support to Local Authority (LA) to prepare them for the tasks and support the design and piloting of a grant mechanism. Finally, the third component is the national institutional strengthening fund. It will finance national-level cross-cutting issues aimed at improving accountability and transparency in the use of project resources.