Malawi - Malawi Nacala Rail and Port Value Addition Project


Project Summary

Approval Date 23 May 2017
Signature Date 14 Jun 2017
Planned Completion Date 28 Nov 2021
Last Disbursement Planned Date 31 Dec 2020
Sovereign / Non-Sovereign Sovereign
Sector Multi-Sector
DAC Sector Code 32130
Commitment U.A 721,625.68
Status Implementation

Project General Description

The project is designed to complement the OPSD3 Nacala Rail and Port Project in order to support inclusive and sustainable economic growth along the Nacala Corridor in Malawi. The Nacala Road Corridor is one of the important trade corridors in Southern Africa. The development of the corridor is critical to enhancing regional and international trade competitiveness particularly for landlocked countries such as Malawi. The road and rail transport infrastructure along the Corridor is considered to be "anchor infrastructure" along which spatial development in other economic sub-sectors can develop, such as energy, mining, agriculture, agro-forestry, fisheries, and tourism. The project will involve three main interventions, Those are: (i) building the capacity and facilitating access to markets and financial resources directed to growth oriented agribusiness entrepreneurs in selected rural and semi-rural areas in the Nacala Corridor region. This intervention will enable them to create or strengthen innovative and competitive rural agro-processing small and medium businesses that will develop a strong linkage with smallholder farmers and integrate them in their supply chain; (ii) supporting farmer institutions to improve capacity for advocacy and provision of relevant services to enhance sustainability; (iii) building the capacity of smallholder farmers to catalyze change of mindsets and gain a better understanding of farming as a business. The total project cost is estimated at USD 1.1 million.

Project Objectives

The main goal of the present project is to improve on the efficiency and competitiveness of local businesses in the Nacala Corridor to enable them to take advantage of the newly constructed transport infrastructure, and to achieve accelerated economic and social growth in Malawi.

Beneficiaries

The target beneficiaries are SMEs involved in agro-processing and operating along the Nacala corridor region of which at least half are expected to be owned by women and/or youth. Other beneficiaries include smallholder farmers and farmer groups in the Nacala corridor; extension service workers through improved skills and financial institutions through training of loan officers. The project will select 10 to 15 agribusiness SME owners (champions) demonstrating growth potential, targeting at least 50% women.

Participating Organization

Funding
Fund for African Private Sector Assistance
Implementing
Malawi Investment and Centre (MITC)

Information

IATI identifier 46002-P-MW-KB0-002
Last Update 31 Oct 2019

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Contact Details

Email fapa@afdb.org

Geographic Location

Country Malawi