Private Sector Development Project

Project Overview

The project has the ambition of contributing to the transformation of the private sector into the engine of real growth and anchor for economic diversification, job creation and greater economic opportunity for the poor that Malawi requires.

The project will also ensure a more receptive policy and institutional environment for Agriculture and Manufacturing value chains and ensure the establishment of the value chains at policy level.

The PSDP operational approach is characterized using two instruments: UNDP’s Inclusive Markets Development (IMD) and the Challenge Fund.

 A Malawi Innovation Challenge Fund has been established and pioneered for the first time in Malawi under the PSDP. This will provide direct support to lead businesses with grant finance and technical assistance, with a view to supporting agriculture and manufacturing value chains to work better for the poor following the IMD approach.

Project Goal

Inclusive finance products expanded, new business-to business opportunities for Malawi products

Project outputs

  • The Industrial development policy and prioritized sectoral policies and strategies developed and implemented
  • The MICF is established and operational to increase inclusiveness and competitiveness of value chains in agriculture and manufacturing
  • Loan facility provided to smallholder farmers, low income women and youth



Project start date:

January 2013

Estimated end date:

December 2022

Focus area:

  • eradicate poverty in all its forms and dimensions
  • inclusive growth
  • Project office:

    UNDP in Malawi

    Implementing partner:

    Ministry of Industry and Trade

    Funding Support by

    Donor name

  • United Nations Development Pro
  • International Fund For Agricultural Development
  • Government Of Malawi
  • Government Of Norway
  • Department For International Development (dfid)
  • Kreditanstalt Fur Wiederaufbau
  • Ministry Of Foreign Affairs
  • Norway
  • Undp As Administrative Agent For A Joint Programme Pass Through Arrangement
  • Amount contributed


    Delivery in previous fiscal year

    2021 $729,751

    2020 $1,662,802

    2019 $4,246,400

    2018 $4,223,915

    2017 $3,271,482

    2016 $2,456,130

    2015 $2,013,255

    2014 $1,179,598

    2013 $315,106

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