• Reference: P-MW-KF0-005
  • Appraisal Date: 29/05/2017
  • Board Presentation: 29/09/2017
  • Status: LendingLEND
  • Implementing Agency: MINISTRY OF FINANCE
  • Location: Nationwide


TThe project's broad development objective to promote inclusive economic growth through improved investment climate and enabling business climate in Malawi. The Project will help in building and strengthening capacity in areas of (a) investment promotion through increased role of the private sector through PPP and IPPs, ensuring that projects are bankable and land is available to potential investors for tourism and industrial development; (b) Investment facilitation by addressing policy and capacity bottlenecks that impinge on investment in the tourism, energy, and mining; and (c) Support the development of SMEs through policy and legal framework review, infrastructure development, and improved business advisory and support services. The Project will work with other partners through the SWG in ensuring that there exists synergy and coordination in areas requiring support.exists synergy and coordination in areas requiring support.

TThe Project is designed to contribute to improved investment climate by strengthening policy and institutional capacity of key PSD service delivery institutions. It has two main components, namely Component 1: Create enabling environment for private sector led investment and growth; and Component 2: Promote development of Small and Medium scale investments and businesses; and Component. PPP projects with high socio-economic impact and that promote economic diversification away from agriculture, including those in the energy, tourism and mining sectors, will be priotised. Bureaucratic processes and challenges to access land are disincentives to potential investors. Energy challenges are a key impediment to investment. Currently, some manufacturing industries are working under capacity due to power challenges. Some mining ventures are on hold due to insufficient power. SMEs are also key to poverty reduction and employment creation, and economic empowerment especially amongst women and the youth. The Project will therefore assist in promoting PPPs in targeted sectors, create SEZs and incubators for SMEs and large scale investments, and zone sites for potential tourism investments.


The operation is aligned to the Malawi Growth and Development Strategy (MGDS II, 2011 -16) which envisages private sector-led growth in Malawi under theme I, "Sustainable Economic Growth". The operation is focusing on strengthening institutional, policy and regulatory environment, which are the major bottlenecks for private sector investment in Malawi. The operation is also aligned to the Bank Group's Long Term Strategy (LTS, 2013-2022) priority areas (PSD, Governance and accountability), and the High Fives (Industrialise Africa, and Improve Quality of Life for Africans). The operation is in line with Pillar III (Investment and Business Climate) of the Governance Operational Framework and Action Plan (2014-2018), the Private Sector Development Strategy (2012-17), and Pillar II (Economic Empowerment) of the Bank's Gender Strategy, as well as Pillar II (Support action to expand private sector investment and trade) of the Malawi Country Strategy Paper (CSP, 2013-2017), all of which identify PSD as key to inclusive growth. The Project has specific interventions under Components 1 and 2 on supporting investment and industrialisation, improving quality of life, and women empowerment.


The Project beneficiary will include all key institutions responsible for private sector development in Malawi. These are the Ministry of Industry and Trade, the PPP Commisssion, the Malawi Investment and Trade Centre, the Small and Medium Enterprises Institute, and the National Association of Business Women. The Project will assist in institutional strenthening and capacity development including review of policies and regulatory framework. An improved business enabling enviornment will lead to increased investment and trade in Malawi. As such, the Project is expected to contribute to sustained and inclusive growth in Malawi.

Key contacts

KAMANGA Fenwick Dingiswayo - RDGS5

Estimated Cost