Promoting income and jobs in rural areas

Context

Malawi is one of the poorest countries in the world. Three main problems are restricting economic development:

1. Access to financing is challenging and high interest rates limit investment. This makes it difficult for small and medium-sized enterprises (SMEs) to grow.

2. The economy is unstable due to poor policy and administration. Inflation is also making imports more expensive and difficult, which increases overall costs for companies.

3. Policy is unclear and changes frequently. There is also an insufficient level of transparency and consistency, which can be unsettling for companies. At the same time, many laws do not serve the market system or are lacking.

Objective

Companies in Malawi reduce poverty through higher wages and new jobs. Public structures and laws promote the development of the private sector.

Approach

The project is working with the Malawi Ministry of Trade and Industry and the Ministry of Tourism on the development of coherent policies and strategies to enable private-sector growth in agriculture, tourism and environmentally-friendly building materials. For example, the risk management strategy for tourism and the development strategy for cooperatives have been promoted.

Activities also include support for business associations and umbrella organisations in developing and expanding their services for companies. Among other things, information, training and market access programmes are being strengthened.

Companies in rural areas also receive direct support - in agriculture, tourism and environmentally-friendly building materials. The project provides training services to start-ups to booste their development and assists established companies in expanding their operating models through development partnerships.

Last update: March 2024