Core area “Sustainable economic development, training and employment” Creating jobs and incomes

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A female farmer training with a hand tractor: At the Malawi University of Agriculture and Natural Sciences, farmers can rent tractors for days at low prices.

Since 2014, promoting the private sector in rural areas has been one of the priority areas of German-Malawian cooperation. The goal is to create jobs and income opportunities in rural areas and increase state revenues. A special focus is on supporting women and young people.

The central aim is to establish and develop selected value chains (such as cassava, peanuts, soybeans, fish from aquaculture and environmentally friendly building materials). The production and processing of local produce is to be improved in order to make it more marketable both at home and abroad. This is being done, for example, by supporting collaborative projects where the private sector teams up with small farmers who have not produced any surplus until now or who have not had access to markets for their produce. The development of tourism infrastructure is also being promoted.

Cooperatives are receiving support for representing the interests of their members at the regional and national levels, for setting up local development centres and for drawing up joint marketing strategies. Financial institutions are being advised on analysing market potential and investment needs, and on developing adapted financial services for businesses operating in rural areas.

In addition, KfW Development Bank is supporting the financing of especially innovative business models in cooperation with the UN Development Programme (UNDP).