The African Development Bank (AfDB) has approved a $1 million (about K750 million) grant from the African Private Sector Assistance (Fapa) Fund to finance the Malawi-Nacala Value Addition Technical Assistance Project.
A press statement the bank issued last week says the Value Addition Technical Assistance Project aims at improving the efficiency and competitiveness of local businesses situated in the Nacala Corridor to enable them exploit available transport infrastructure.
“The project is designed to complement the bank’s private sector department Nacala Rail and Port Project in order to support inclusive and sustainable economic growth along the Nacala Corridor in Malawi.”
The project, which will run for three years, is expected to build capacity and facilitate access to markets and financial resources directed to growth oriented agribusiness entrepreneurs in selected rural and semi-rural areas in the Nacala Corridor.
The project also seeks to build the capacity of smallholder farmers to catalyse change of mindset in such a way that they gain a better understanding of farming as a business.
Fapa is a multi-donor thematic trust fund that provides grant funding for technical assistance and capacity building to support implementation of the bank’s private sector development strategy.
The Fapa portfolio includes projects designed to improve the business environment to strengthen financial systems, build private sector infrastructure, promote trade and develop micro, small and medium enterprises.