The project strategy will support three key components:

1. Nurturing a Policy Dialogue among stakeholders to support the development of an inclusive financial sector

2. Supporting Innovations in Financial Markets that deepen and broaden access to services focusing on agricultural finance and mainly to women , savings services, and electronic banking applications

3. Building the Capacity of key institutions supporting micro, rural and agricultural finance including Reserve Bank of Malawi, the Malawi Microfinance Network, the Government, and Micro and other financial institutions, particularly in the areas of financial transparency, outreach and sustainability.

The project key results to be achieved include:

1. Appropriate mechanism (s) established to promote an effective policy dialogue for the development of an inclusive financial sector;

2. Innovations in financial markets that extend financial services (savings, loans, payment services, money transfers, or insurance) to low-income groups, primarily in rural markets mainly women;

3. Capacity of institutions operating in financial sector strengthened to increase outreach and sustainability of the sector, such as Financial institutions, Microfinance network, the Reserve Bank of Malawi and Local Service Provider.

It is expected that the number of household savers will increase by 50% by the end of the Project with a baseline (June 2006) of 283,000 thus 141 500 additional new household savers (764 100 people); the number of household borrowers by 50% with a baseline (June 2006) of 183,000 thus 91 500 new household borrowers (494 100 people) and the number of households rural clients by 40% with an estimated number of 100,000 (2006). Women should represent 50% of the total clients. The maximum number of new households having access to financial services whether savings or credit is 141,000. This number is inclusive of the other targets.

• Developing Inclusive Financial Sectors in Malawi aims to contribute to poverty reduction by increasing access to financial services (loans, savings, payment services, money transfers, and/or insurance) for poor and vulnerable populations, with priority given to increasing access to rural areas where demand for services is greatest.

• The project takes a sectoral approach, situating the development of microfinance in the overall financial sector including banking and capital markets.

• A new platform called the Microfinance Forum was set up in July 2006 to enable effective communication across sectors and among stakeholders to discuss issues of financial sector development, the role of micro, rural and agricultural finance in the financial sector development, and broad policy interactions. The Forum can contribute to the financial sector deepening. The Forum will support the designing of the legal and regulatory framework and the information sharing to increase synergy between the financial inclusion programmes.

• Ministry of Finance executing agency for the programme;

• Other national partners are Malawi Microfinance Network (MAMN), the Ministry of Industry, Trade and Private Sector Development and the Reserve Bank of Malawi.

• The Project will benefit to the Microfinance Forum, the Ministries involved in the sector, the Reserve Bank, the MAMN, the FSPs and the Local Technical Service Providers.

• The final clients of the FIMA are the poor and low - income populations in Malawi who will have better access to financial services, including women in rural areas.

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• Investment Committee releasing the first investments