DFID and UNDP sign Cost-Sharing Agreement on the Private Sector Development Project 2013-2016Jun 12, 2013
The UK Department for International Aid (DFID) and the United Nations Development Programme (UNDP) Malawi have signed a Cost-Sharing Agreement for the launch of the Malawi Innovation Challenge Fund (MICF). DFID will contribute a total amount of 5 million GBP (or 8 million USD) towards the MICF, one component of UNDP’s Private Sector Development (PSD) Project, whilst UNDP’s contribution to the PSD project is 3.5 million USD in the areas of Policy and Loan Facility support.
There is an urgent need to support the economic transformation of Malawi, through broadening and diversifying the productive base of the economy. The Private Sector Development Project intercedes to incentivise the private sector to contribute to sustained, rapid and inclusive economic growth.
More specifically, the overall goal of the PSD project is to support productive partnerships within the private sector, particularly between lead firms and poor producers and entrepreneurs, including smallholders. The project will aim to support the ambitions set out in the National Export Strategy, giving preference to projects in the oil seeds, sugar and manufactures sectors. The PSD project will also work with Government stakeholders to support a more inductive policy and institutional environment for businesses operating in these sectors.
The Malawi Innovation Challenge Fund will award financial contributions to businesses on a competitive and transparent basis, with a view to leveraging resources from the private sector and promoting innovation by sharing some of the risks. The MICF will hence provide direct support to lead businesses with both grant finance and technical assistance, to support the Oil Seeds, Sugar and Manufacturing value chains to work better for the poor. The first round of competitions under the MICF will take place before the end of 2013 and will be advertised widely in the following months.
An independent Fund Management team will be responsible for the day-to-day running of the Challenge Fund under UNDP’s oversignt, and an independent investment panel will convene to technically assess the proposals. UNDP will oversee the implementation of the project to ensure project compliance with the terms and conditions applicable to the DFID-UNDP Cost-Sharing Agreement.Contact information
Christina Shorai Nyambalo
Tel: +265-1-773-500 or +265-999-563-407
Tel: +265-1-773-500 or +265-999-504-275