Malawi - Transforming High-Potential Resilient Value Chains Project

Overview & Synopsis

Transforming High-Potential Resilient Value Chains (M-THRiVE) for Malawi has the development objectives of increasing firm growth and access to finance for targeted firms in Malawi’s export value chains. Component 1: Strengthening Value Chains for Exports supports entry and survival of new and returning exporters and lowers regulatory costs through three Sub-components. Sub-component 1.1: Export Readiness Program with performance-based grants provides a phased package of cohort training, firm-level advisory, credit clinics with Participating Financial Institutions (PFIs), and reimbursable matching support tied to verified milestones to help firms secure buyers, meet standards, and diversify products and markets, with dedicated outreach for women-led firms. Sub-component 1.2: Technical Assistance to the Ministry of Industrialization, Business, Trade and Tourism (MoIBTT) updates trade policy instruments, develops data tools and dashboards, streamlines and digitalizes export licensing for priority value chains, and strengthens transparency in exporter-facing processes. Sub-component 1.3: Performance Based Condition (PBC) supports institutionalizing a predictable, rules-based regime under the Control of Goods Act (COGA) through a ministerial directive, structured reviews, and public disclosure of a revised export restrictions list, verified by an Independent Verification Agent (IVA). Component 2: Financing Exporters and Productive Small and Medium Enterprises (SMEs) expands tailored, de-risked finance through two Sub-components. Sub-component 2.1: Access to finance for export value chains establishes a portfolio Partial Credit Guarantee Facility (PCGF), including a shock-responsive climate risk financing window co-financed with the Global Shield Financing Facility (GSFF), and provides local currency Lines of Credit (LOCs) for working capital and climate-resilient investments and a foreign exchange LOC for import letters of credit for critical inputs, with differentiated coverage and portfolio incentives for women- and youth-led borrowers. Sub-component 2.2: Technical Assistance to the Reserve Bank of Malawi (RBM), the Malawi Agricultural and Industrial Investment Corporation (MAIIC), and the Ministry of Finance, Economic Planning and Decentralization (MoFEPD) develops the PCGF manual and lender oversight, strengthens climate risk financing policy and market frameworks, and completes feasibility and implementation arrangements for the shock-responsive mechanism. Component 3: Project Management Support to the Project Implementation Unit builds implementation capacity at RBM for fiduciary, monitoring and evaluation, and verification functions, enhances environmental and social compliance, and coordinates stakeholders to ensure timely delivery and results tracking.