Matching Grants Program Resources

Frequently Asked Questions

What is a Matching Grant Program?

The Matching Grant is a programme within the Southern Africa Trade Connectivity Project where contribution does not exceed US$ 1,000,000 and 70:30 percent of the total value of investment contributed between the project and the beneficiary. The 70:30 percent contribution is considered a risk-sharing solution. The programme is administered by the Department of Industry of the Ministry of Trade and Industry (MoIT). This program falls under component 3 which aims to improve the productivity and market opportunities for the private sector aggregated in market medium to large scale businesses with export operations in regional value chains.

What market opportunities exist for the value chain products?

In Africa: Mozambique, South Africa, Tanzania, Zambia, Zimbabwe, and Uganda.
International: European Union, Italy, Japan, and the United States of America.

 

**The program supports the agriculture sector** (like oilcake of groundnuts, soya) where there is greater demand in the regional markets than what can currently be produced in the region. For instance, Malawi has been identified to produce animal feed using locally produced soya and groundnuts to meet export demand, which shows the potential for Malawi’s exports of oilcake.

Who does the Matching Grants Programme target in Malawi?

SATCP identified 15 districts of Malawi that are along the Nacala and Beira Corridors. These include: Mchinji, Lilongwe, Dedza, Ntcheu, Balaka, Machinga, Mangochi, Zomba, Mulanje, Thyolo, Chiradzulu, Phalombe, Blantyre, Mwanza, Neno.

What other opportunities exist for Malawi in value chains?

– Agriculture Commercialization (AGCOM) Project** which aims to increase commercialization of agriculture value chain products. The products in this sector refer to products of farms and agribusinesses, including crop, livestock, and fisheries products sold domestically or exported, with other inputs processing, designing and marketing for export.

– Transforming Agriculture Through Diversification and Entrepreneurship in Malawi Programme** – with emphasis on food products, value of rural and poor households in agricultural value chain and international products.

– Multinational Nacala Road Corridor Development Project in Malawi, Zambia and Mozambique.** It involves rehabilitation of Njase – Liwonde road and provision of support to the Border Post (OSBP) between Malawi and Mozambique at Chiponde/ Mandimba border post. It intends to contribute to the reduction of trade cost along the Nacala Road Corridor thereby enhancing Malawi’s trade competitiveness.

What value chains are focused on?

The value chains include tobacco, sugar, coffee, tea, cotton, ground nuts, macadamia nuts, cashew nuts, kidney beans, pigeon peas, chick peas, cow peas, soya peas, sunflower, cotton, ground nuts, mangoes and vegetables maize seeds, berries, eye bird chillies and vanilla, spices.

How will trade in value chains be sustained?

1. The Ministry of Agriculture through its extension service encourages smallholder farmers to grow recommended improved variety crops attractive to value chain and export market.

2. When the Ministry of Agriculture developed the Malawi National Investment Plan (NAIP) 2017-22, made a value chain prioritization process based on the trade corridors call for the identification of priority value chains to foster Public Private Partnerships (PPPs).

3. Build capacity of enterprises to maintain high standards and availability of competitive products.

4. Malawi participates in the COMESA-SADC-East African Community (EAC) Tripartite Free Trade Area (FTA) negotiations. The tripartite arrangement will harmonize customs procedures, promote free movement of businessespersons, undertake joint implementation of inter-regional infrastructure programmes, and establish institutional arrangements to foster cooperation among the regional economic communities.

5. Malawi, Mozambique and Zambia have bilateral trade agreements to stimulate several trade benefits to businesses in the flow of free import duties for goods that are grown, produced, and manufactured by the two countries.

6. Increase the production levels by the smallholder farmers and facilitate smallholder access to finance for the farming operations.

7. SATCP Value Chain Mapping and Last Mile.

Resources

Download the resources below

Form Action
MGP Application Form

Application Process