Malawi Distributes US$4.5 Million in Grants to 120 Businesses

Malawi has distributed approximately US$4.5 million in grants to 120 businesses under a World Bank-funded programme aimed at improving enterprise productivity, strengthening agricultural value chains and expanding regional trade.

111 Micro and Small Businesses Receive Funding

The Ministry of Industrialisation, Business, Trade and Tourism announced the disbursement through the Southern Africa Trade and Connectivity Project (SATCP), which supports businesses operating along the Nacala and Beira trade corridors.

The beneficiaries comprise 111 micro and small enterprises selected for Business Plan Competitive Grants and eight medium and large companies receiving matching grants.

The smaller businesses secured approximately US$2.02 million, while the eight larger companies received US$2.52 million. The ministry selected the micro and small enterprises from 1,308 applications submitted across 15 districts. The medium and large businesses were selected from 284 applications.

Grants Target Production and Regional Trade

The funding is intended to address one of the major constraints facing Malawian businesses: limited access to capital for equipment, production expansion and improved processing capacity.

Under the Business Plan Competition, eligible enterprises can receive grants of up to US$25,000. The programme supports investments in equipment, training, irrigation and warehousing systems. It also provides technical assistance to help smaller producers improve their operations and strengthen their position in agricultural value chains.

The matching grants programme targets medium and larger businesses with export potential. Under its financing arrangement, the project and participating businesses share investment costs, encouraging companies to contribute towards their own expansion.

The initiative focuses on agricultural commodities and value-added products, including soya, sunflower, rice, groundnuts, cassava, pigeon peas, macadamia nuts, cashew nuts, beans and vegetables.

These sectors offer opportunities for businesses to supply regional markets, particularly in neighbouring Mozambique and Zambia, while developing trade links with other Southern African economies.

Speaking at the grant presentation in Lilongwe, Deputy Minister of Industrialisation, Business, Trade and Tourism Edgar Tembo urged beneficiaries to use the funding to increase production, create employment and develop sustainable businesses.

Women-Led Enterprises Among Beneficiaries

The ministry will also provide onboarding support covering financial management, regulatory compliance, reporting and monitoring requirements.

National Smallholder Farmers' Association of Malawi (NASFAM) chief executive Betty Chinyamunyamu, who spoke on behalf of beneficiaries, described the grants as a vote of confidence in local producers. She also noted that a significant proportion of the selected businesses were women-led.

The SATCP is a US$150 million regional programme involving Malawi, Mozambique and Zambia. It seeks to improve trade connectivity, strengthen regional value chains and increase the participation of local enterprises in cross-border commerce.

The grants will allow selected businesses to invest in machinery, irrigation systems, storage facilities and staff training. For the 111 micro and small enterprises, each award is capped at US$25,000, while the matching-grant component gives larger companies an opportunity to finance expansion projects with support from the regional programme.