DONOR SUPPORT

The Ministry of Industry, Trade and Private Sector Development is currently implementing a number of donor supported projects as follows.

Integrated Framework

The Integrated Framework (IF) Program commenced in 1997 to promote the integration of least developed countries into the global economy.

Participating agencies are:

In 2000, a Trust Fund was established to increase the benefits that least developed countries derive from trade related Technical Assistance (TA). Three pilot countries (Cambodia, Madagascar and Mauritania) were identified for a program of work starting with a diagnostic trade integration study covering competitiveness and the impact of increased integration in the world economy on poverty and implied technical assistance needs flowing from these findings.

In late 2001 the Government of Malawi and the Integrated Framework Inter Agency Working Group (IAWG) agreed that Malawi would be one of four countries to participate in the next round of the IF work program. In November 2001, a preliminary mission to Malawi was conducted by IAWG representatives to establish working arrangements with the government, establish processes for recruiting local IF team members and establish the scope of the Terms of Reference.

In February 2002, the Terms of Reference were reviewed by the Integrated Framework National Steering Committee that was formed in Malawi, consisting of government officials, private sector representatives, development partners, and non-governmental organizations. (The Ministry of Industry, Trade and Private Sector Development serves as the focal point for the National Steering Committee).

In April 2002, the National Steering Committee met once again to approve the Terms of Reference. This also coincided with the commencement of the field mission to Malawi, which carried out its work between April 29 and May 10, 2002.

On September 4, 2003, a National validation workshop on the DTIS was held in Lilongwe to review and validate the findings of the report. 

The Integrated Framework provides for two main funding windows: window I which funded the preparation of the DTIS; and window II which provides USD 1 million to begin partial implementation of projects to address the challenges identified in the DTIS Action Matrix.

Malawi is utilising window II resources for two projects: a Trade Policy Advisory Services Project based within the Ministry of Industry, Trade and Private Sector Development; and a Standardisation, Quality Assurance, Accreditation and Metrology Project in the Malawi Bureau of Standards.

Integrated Framework - Trade Policy Advisory Services Project
Project period: January 2005-January 2007
Project funds: USD 524,000
Donor: Integrated Framework trust funds (Window II)

The principal objective of the programme is to build capacity for

  1. trade policy analysis, formulation and implementation;
  2. trade integration in key development strategies including the Malawi Poverty Reduction Strategy (MPRS) and the Economic Growth Strategy and
  3. trade facilitation and negotiations.

The main results of the programme include:

  1. a comprehensive trade policy approach;
  2. an increase in participation in regional and global economy;
  3. increased competitiveness of Malawi in regional and global trade; and
  4. increased industrial capacity utilization. Ultimately, the project will contribute to key outcomes of increasing employment opportunities for poverty reduction.

Integrated Framework - Technical Support for Improving the Standardisation, Quality Assurance, Accreditation and Metrology (SQAM) Infrastructure Project
Project period: July 2005-July 2007
Project funds: USD 476,000
Donor: Integrated Framework trust funds (Window II)

This project aims at achieving the millennium development goals and human development through private sector development. It will be achieved by building local capacity in the field of standardization, quality assurance, accreditation and metrology (SQAM) both at enterprise level, through the enhancement of the awareness of Malawian enterprises on the importance of standardisation issues, and at institutional level, the improvement of the capability of local organisations to deliver SQAM related services to private enterprises, with the overall aim of supporting enterprises in their endeavour to access foreign markets.

The activities outlined in this project and the successes achieved will constitute the starting point for the development of other projects in the areas of SQAM, to be submitted to the donor community during the future phases of the Integrated Framework.

Joint Integrated Technical Assistance Project (JITAP)
Project period: July 2003-July 2007
Project funds: USD 600,000
Donor: World Trade Organisation (WTO), United National Conference on Trade and Development (UNCTAD) and International Trade Centre (ITC)

JITAP is a joint initiative of the WTO, UNCTAD and ITC that aims to support the integration of least developed countries into the multilateral trading system. Specifically in Malawi, the project aims to implement the following:

  • National capacity building in the formulation of trade policies, understanding and implementation of the WTO agreements and negotiations;

  • Establishment of national knowledge base on the multilateral trading system and information flow mechanisms among stakeholders;

  • Design and development of sector strategies and to build capacity to derive benefits from business opportunities and potentials emerging from multilateral trading system; and,

  • Improved coordination and collaboration among various stakeholders as well as linkages with existing trade-related technical assistance initiatives.

Business Environment Strengthening Technical Assistance Project (BESTAP)

Project period: August 2007-July 2012

Project funds: USD 18.7 million

Donor: The World Bank (with co-financing from the EC)

 

The Business Environment Strengthening Technical Assistance Project (BESTAP) aims to tackle the underlying causes of low private sector investment in Malawi by reducing the costs of doing business, improving service delivery to the private sector and providing targeted support to small and medium sized enterprises. The project components are as follows:

  1. Improving property rights institutions and business facilitation

    - Streamlining the regulatory environment for business (Ministry of Justice).

    - Improving access to commercial justice (High Court, Commercial Division).

    - Improving services at the business and lands registry (Registrar General's Department and Lands Registry).

  2. Strengthening private sector development support institutions and services

    - Establishing a one-stop-shop at the Malawi Investment and Trade Centre (MITC).

    - Establishing and institutional framework for Public Private Partnerships (Ministry of Finance and Privatisation Commission).

    - Improving private sector development policy analysis and delivery (MITPSD).

    - Supporting a sustainable framework for public private dialogue (Malawi Confederation of Chambers of Commerce and Industry).

  3. Promoting access to finance and productivity enhancement among small and medium sized enterprises

    - Establishment of a sustainable SME Fund (Ministry of Finance and the private sector).

    - Business Growth Scheme - matching grant fund for enterprise development (MITPSD and BUGS unit).

Support to the National Economic Partnership Agreement (EPA) Secretariat - National Development and Trade Policy Forum (NDTPF)

Project Period: Oct 2006-Oct 2009

Project funds: EUR 1.6 million

Donor: European Commission (9th EDF)

 

Malawi is currently in the process of negotiating a new post-Cotonou trade, development and assistance agreement with the member states of the European Union. Malawi is taking part in the negotiations are part of the Eastern and Southern Africa (ESA) configuration. The aim of this project is to support the Malawi National Development and Trade Policy Forum (NDTPF) which was established in 2004 with the objective of developing Malawi’s optimal negotiating position through effective organisation and coordination of the national EPA negotiations. The sustainability of the NDTPF plays a central role towards the achievement of a favourable EPA for Malawi.

 

The project will address constraints at the institutional and human resource level with regard to trade negotiation competencies, and support the forum to determine negotiating positions for Malawi, which will reflect Malawi’s best interests and will be used by the country’s representatives in the Regional Negotiating Forum (RNF) in preparation for the ESA negotiating positions. Through these interventions the project will address Malawi’s capacity to participate effectively in the EPA negotiations with the EU and whilst ensuring that the EPA is directly linked to the national development plans, particularly the Malawi Growth and Development Strategy (MGDS), involves the Private Sector in the EPA process and facilitates the further mainstreaming of trade into the national development policies. This support will ensure that an optimal outcome is arrived at from the EPA negotiations, which would lead to the integration of Malawi into the global trading system, contribute towards poverty reduction and the achievement of national development goals.

 

Enhanced Food Security through Trade (EFSTT)

Project Period: April 2007-October 2009

Project funds: EUR 1.6 million

Donor: European Commission

 

The aim of the Enhanced Food Security through Trade Project is therefore to strengthen GoM institutional capacity in trade policy related to agricultural products and to improve the enabling environment for agricultural diversification, and thereby improve national and household food security. The project has eight Results:

 

Result 1: MITPSD management information system developed to strengthen inter and intra institutional co-ordination and collaboration between public, non-state, and private (profit sector) institutions / organisations on food security trade issues.

 

Result 2: Analytical capacity within MITPSD strengthened through skills development, complementary resource upgrading, and agreed reciprocal collaboration with institutions / organisations.

 

Result 3: Private sector investment in the food sector enhanced through improved market intelligence, enabling regulatory controls, and supportive policy.

 

Result 4: District agricultural trade information system concept developed and piloted through district assemblies.

 

Result 5: Agricultural trade information network, through inter-net access, conceptualised in public-private partnership.

 

Result 6: Trade support institutions (MEPC and MBS) and Agriculture / Veterinary departments undergo a core function analysis process to improve service provision to smallholder farmers.

 

Result 7: Training support piloted to empower farmer cooperatives / farmer organisations to promote quality enhancing services.

 

Result 8: Agricultural extension service providers (public, non-state, and private) and food security stakeholders sensitized towards environmental and social compatibility requirements of trade liberalisation.

 

 

Click here to download a full summary of donor support to trade and private sector development in Malawi.