AfDB to Support Local Agri-Businesses in Malawi-Nacala Corridor

1 June 2017
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African Development Bank (Abidjan)

The Board of Directors of the African Development Bank Group on 23rd May 2017 approved a US$ 1 million grant from the African Private Sector Assistance (FAPA) fund to the Government of Malawi to finance the Malawi-Nacala Value Addition Technical Assistance Project.

This TA demonstrates the Bank's effort to promote inclusive private sector development and SME linkages with large investments. It is also aims to promote both economic development through infrastructure along the Nacala corridor. Thus, to strengthen the inclusiveness of investments financed in the Nacala corridor, the Bank designed two TA projects, a value addition project in Malawi and a business linkage project in Mozambique. The Malawi Nacala Value addition Technical Assistance Project is aimed at improving on the efficiency and competitiveness of local businesses situated in the Nacala Corridor in order to enable them exploit available transport infrastructure financed by the Bank.

The project is designed to complement the Bank's private sector department Nacala rail and port project in order to support inclusive and sustainable economic growth along the Nacala corridor in Malawi.

In three years, the project will: (i) Build capacity and facilitate access to markets and financial resources directed to growth oriented agribusiness entrepreneurs in selected rural and semi-rural areas in the Nacala Corridor; (ii) Support farmer institutions to improve their capacity for advocacy and provision of relevant services to enhance their sustainability; and (iii) Build the capacity of small holder farmers to catalyze change of mindset in such a way that they gain a better understanding of farming as a business.

FAPA is a multi-donor thematic trust fund that provides grant funding for technical assistance and capacity building to support implementation of the Bank's Private Sector Development Strategy. The Governments of Japan and Austria and the African Development Bank, are active contributors to the fund, which to date has provided over US$51 million to 65 projects (24 of which are regional projects with 41 located in 24 individual countries across the African continent).

The FAPA portfolio includes projects designed to improve the business environment, strengthen financial systems, build private sector infrastructure, promote trade and develop micro, small and medium enterprises.

For more information on FAPA: http://www.afdb.org/en/topics-and-sectors/initiatives-partnerships/fund-for-african-private-sector-assistance/enhanced-private-sector-assistance-for-africa-epsa-initiative/ or fapa@afdb.org.

Read the original article on African Development Bank (AfDB).

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