UNCDF in Malawi
East and Southern Africa and the Arab States Region
Loans
Investment grants
Our work
The United Nations Capital Development Fund (UNCDF), in close collaboration with the Government of Malawi and development partners, mobilizes and catalyses capital for investments that support inclusive economic growth and strengthen local development finance systems. UNCDF works across digital finance and subnational public finance, and catalytic finance to unlock capital for underserved communities and small businesses.
Through its programmes, UNCDF is strengthening decentralization and local government capacity, expanding inclusive digital finance, and deploying blended finance instruments to crowd in private capital for high-impact sectors such as agriculture and financial inclusion. In 2025, UNCDF successfully operationalized the BUILD Malawi facility, disbursing capital to SMEs and financial institutions after several years without deployment, demonstrating its ability to move from pipeline to execution while maintaining strong governance and impact alignment.
UNCDF’s integrated approach combines policy support, technical assistance, and catalytic capital to build resilient local economies and expand opportunities for women, youth, and rural communities.
Decentralization and subnational finance
UNCDF supports Malawi’s decentralization agenda by strengthening the capacity of national institutions and Local Government Authorities (LGAs) in project management and development finance. In collaboration with the Ministry of Local Government, Unity and Culture, UNCDF developed a National Guide on Project Management to help local authorities design and implement revenue-generating projects. This promotes financial sustainability, improved service delivery, and stronger local economic development.
Advancing climate-responsive local development
In 2025, LoCAL Malawi made significant progress in strengthening climate resilience at the subnational level.
Three pilot districts successfully integrated climate adaptation priorities into their development and investment plans, ensuring alignment with national strategies. These are Mwanza, Mulanje and Nkhota-kota.
Solar‑powered water storage system supporting climate‑resilient irrigation under the LoCAL Facility in Kalimanjira Village, Nkhotakota District, Malawi. Photo: UNCDF.
The operationalization of Performance-Based Climate Resilience Grants (PBCRGs) linked funding directly to measurable outcomes, promoting results-driven climate investments.
In total, 25 district officials received targeted training on climate risk assessments, environmental and social safeguards, and risk-informed planning, enhancing their capacity to implement resilient projects.
Monitoring and accountability were also reinforced through the Annual Performance Assessment, promoting transparency and performance-based funding allocation.
Driving inclusive digital finance and financial resilience
Launched in 2021, the USD 16.9 million DFS4Res programme is supported by the European Union and the Organisation of African, Caribbean and Pacific States (OACPS) and implemented across 11 countries in Africa, the Caribbean, and the Pacific.
In Malawi, UNCDF is expanding access to inclusive digital finance, strengthening both financial inclusion and the enabling ecosystem for digital financial services. Over 9000 savings group members (75% women, 31% youth) have access to a digital and financial platform with 53 groups having accessed loans helping to deepen participation in formal and semi-formal financial systems. Additionally, over 7000 members have received digital and financial literacy support, while over 9000 MSMEs are set to receive DFL trainings equipping them with the skills to better engage in the digital economy.
Beyond individual users and enterprises, the programme is also contributing to systemic change. UNCDF also supported the establishment of Malawi’s first Digital Financial Services Association and the development of a national financial inclusion data portal, strengthening coordination and evidence-based decision-making in the sector.
Community members engage in a digital financial session, strengthening skills and awareness to support more inclusive and resilient financial participation. Photo: UNCDF.
Catalysing SME finance
In 2025, the BUILD Malawi programme successfully disbursed three catalytic transactions aligned with food security and financial inclusion objectives:
- Ziweto Enterprises Ltd – concessional loan of USD 400,000.00 (to expand agricultural production and strengthen food security value chains.
- Thanthwe Enterprises – concessional loan of USD 210,000.00 to scale agro-processing operations and improve rural market access.
- NBS Bank Malawi – concessional loan of USD 750,000.00 to expand SME lending, including eco-loans and financial inclusion products.
These transactions mobilized domestic lending, strengthened SME resilience, and demonstrated the use of concessional capital to crowd in private finance within Malawi’s constrained liquidity environment.
Ziweto employees. Photo: Ziweto.
Ziweto employees carrying supplies. Photo: Ziweto.
Latest news and stories
Our partners
UNCDF’s work in Malawi is made possible through collaboration with the Government of Malawi, the Ministry of Local Government, Unity and Culture, the Ministry of Natural Resources and Climate Change, National Local Governance Finance Committee, the European Union (EU), the Organisation of African, Caribbean and Pacific States (OACPS), the Joint SDG Fund, United Nations Development Programme (UNDP), NBS Bank Malawi, Local private sector partners and SMEs, and Nkhota-kota, Mulanje and Mwanza District Councils.
Documents
This section brings together key documents related to UNCDF’s work in the country. It includes a curated selection of publications, papers, and reports that reflect the scope of engagement at country level, from programme design to implementation and outcomes.
These documents offer additional context on how initiatives are developed and delivered, and how partnerships contribute to advancing national priorities. They are intended to support transparency, facilitate knowledge sharing and serve as a practical resource for partners, stakeholders and others seeking a deeper understanding of UNCDF’s work.
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Contact us
For inquiries about UNCDF’s work in Malawi, including partnerships, investment opportunities, or ongoing initiatives, please contact: esaa.region@uncdf.org.
