MALAWI

UNCDF has been present in Malawi since 1982, working to expand access to financial services for low-income and rural populations.

Today, UNCDF offers “last mile” finance models that unlock public and private resources, especially at the domestic level, to reduce poverty and support local economic development.

UNCDF is engaging in Malawi through the BUILD Fund--UNCDF's off-balance sheet impact investment vehicle co-managed with Bamboo Capital Partners, specifically through the BUILD Malawi window--a specialized structured blended finance vehicle for agribusiness. The Joint Programme will work to end poverty and hunger by increasing investment in agriculture and other manufacturing and service supply-chains, as well as increasing productivity within these supply-chains through technology and innovation; and achieving gender equality by supporting business where women are significantly represented in boards, management, staff, suppliers, or buyers. Targets for the programme include: 3,000 jobs (30% minimum for women and youth) created; 75,000 small-scale producers integrated into investees supply chains; participating small-scale producers’ income increased by 30%; expanded fiscal space with aggregated income taxes of $19.3 million; and 15 supply chains strengthened.

UNCDF is also engaging in Malawi through an EU-funded global programme covering Asia, Caribbean and Pacific (ACP) countries to accelerate economic recovery from COVID-19 and to make economies and societies more resilient to external shocks. In Malawi, the programme entails technical assistance and grants to public and private sector entities (incl. Ministry of Finance, the Reserve Bank of Malawi, private sector and other entities) with the overall purpose of promoting change in two key elements of the digital ecosystem: (1) enabling policy and regulatory environment; (2) open digital payments ecosystem. Another joint programme with the United Nations Office for South-South Cooperation (UNOSSC), funded by the India-UN Development Partnership Fund around digital identity, is aimed at developing the Reserve Bank of Malawi’s efforts on electronic-Know Your Customer (KYC) services and registering a total of 1500 clients.

UNCDF is also supporting the design of the Local Climate Adaptive Living Facility (LoCAL) in Malawi. The LoCAL mechanism is implemented by deploying an instrument for the programming and verification of climate change expenditure at the local level and using the demonstration of its effect to trigger further flows for local adaptation, including national fiscal transfers and access to global climate finance for locally led adaptation (through their national governments).