More income and employment in rural areas through infrastructure and financing

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The program objective in the new focus is to contribute to increasing employment and income along selected value chains, particularly for poorer sections of the population in rural areas of Malawi. The objective of the FC project, for which two components are planned, is: for component 1, the target group uses a needs-oriented and sustainable range of economic infrastructure provided along selected value chains, and for component 2, the private sector uses the expanded financing options provided through the MICF for investments in product processing and distribution for potentially viable and profitable projects. The project thus fits in with the Malawi Growth and Development Strategy 2012-2016 (MGDS II) and the National Export Strategy (NES). Component 1 As part of an open program, economic infrastructure measures along value chains are to be implemented via the Technical Support Team (TST) of the Local Development Fund (LDF). Component 2 FC funds will be provided to the Malawi Innovation Challenge Fund (MICF), which is already operational and is run by UNDP and offers the private sector additional financing opportunities for investments along value chains. Of the planned FC commitment of EUR 10 million, EUR 7 million will be used for component 1 and EUR 3 million for component 2. The programme will run for 3.5 years (Q3/2016 to the end of 2019).