The African Development Bank (AfDB) Group has approved a $ 1 million grant from the African Private Sector Assistance (FAPA) fund to the Government of Malawi.
The grant aims to promote both economic developments through infrastructure along the Malawi-Nacala corridor.
It also demonstrates the Bank’s effort to promote inclusive private sector development and SME linkages with large investments.
The project aims to 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.
It also seeks to 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.
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
The Governments of Japan and Austria and the African Development Bank, are active contributors to the fund, which to date has provided over $51 million to 65 projects.
A majority of people in Malawi depend on agricultural produce as a source of food and also a source of income.
Many sell their harvests so to help their families financially at a time when the economy of the country is in a bad state.