Malawi - Poverty Reduction Project

Project Summary

Approval Date 10 Dec 1998
Signature Date 24 May 1999
Planned Completion Date 31 Dec 2007
Last Disbursement Planned Date 31 Dec 2007
Sovereign / Non-Sovereign Sovereign
Sector Social
DAC Sector Code 11330
Environmental Category 3
Commitment U.A 8,915,158.21
Status Completion

Project General Description

The proposed project is part of the Government's Poverty Alleviation Programme in Malawi. The Poverty Reduction Project is the result of consultations between the GoM, the donor community, NGOs and the private sector. The approaches adopted focus on both basic needs and growth. The project therefore provides resources for community development and income-generating activities through a Social Action Fund and a Microfinance Fund, respectively. It consists mainly of four components: (i) Capacity Building for Poverty Reduction activities; (ii) District Development Funding; (iii) Micro-finance Operations; (iv) Project Management. The project will be implemented over a period of five (5) years, from May 1999 to September 2004.

Project Objectives

The project’s aim is to contribute to poverty reduction in urban and rural Malawi. Specific project objectives are to: (i) strengthen poverty monitoring systems; (ii) promote the formulation and implementation of community initiated sub-projects that are in line with the District Development Plan; (iii) build district and community-level capacity; and (iv) support micro-finance operations in five (5) districts over five (5) years.


The intended beneficiaries are the people the following five districts (Chitipa, Salima, Lilongwe, Mwanza and Mulanje) but was expanded to include two (2) more districts, Neno and Phalombe, split from Mwanza and Mulanje respectively during implementation .The categories of people most affected by poverty in these districts are: rural smallholder farmers; rural female-headed households with heads of households without education; with a high dependence ratio and no resources for generating on farm and off-farm incomes; rural youth; child-headed households (3% of all households) as a result of the 14% HIV/AIDS prevalence rate; people with disabilities, rural and urban households whose heads have low level or no skills; and rural and urban households keeping orphans.

Participating Organization

African Development Fund
Government Of Malawi
Ministry of Local Government & Rural Development


IATI identifier 46002-P-MW-IE0-001
Last Update 15 Apr 2021


Contact Details

Name BALDEH Yero H.J.

Geographic Location

Country Malawi