Malawi is a landlocked country in southeast, sub-Saharan Africa, which gained independence from the United Kingdom in 1964. Historically a strong democracy, Malawi has enjoyed policy stability compared to many of its regional peers.
Malawi completed a $350.7 million energy-focused compact in September 2018, meeting compact targets and moving the energy sector closer to long-term sustainability. In December 2018, MCC’s Board of Directors selected Malawi as eligible to develop a subsequent compact in recognition of Malawi’s strong scorecard performance, robust partnership with MCC, and success in completing its prior compact.
MCC and the Government of Malawi together identified the country’s key constraints to economic growth, which drive the focus of this $350 million compact in addressing the high price of road freight transport service and access to land for investment.
Financials
Financials as of June 30, 2024
Program Budget
Milestones
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Signed:
September 28, 2022 -
Entry Into Force:
May 6, 2024
Program Projects
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$244,950,000
Project Total Amount -
$2,613,576
Project Amount Committed -
$631,345
Project Amount Expended
The AGC Project aims to reduce the barriers between farm and market by improving road conditions, encouraging a more transparent and competitive business environment for transporters, and addressing first mile transportation challenges for smallholder farmers. The project will support policy and institutional reforms to enable better road planning and maintenance of AGCs and associated infrastructure, as well as safer conditions for women to move and conduct economic activity along the corridors.
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1,179,000
Estimated Beneficiaries -
8-10%
Estimated Economic Rate of ReturnThe AGC Project-level ERR and the RCI Activity-level ERR do not include benefit streams from two Sub-Activities of the RCI Activity, the Link Road Works Sub-Activity, and the First Mile Road Works Sub-Activity, due to outstanding data needs. Data to estimate the benefits of these Sub-Activities are being collected as part of the detailed feasibility study; updated ERRs will be provided—and are expected to improve—after due diligence has been completed but before entry into force of the Compact.
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$8,500,000
Project Total Amount -
$0
Project Amount Committed -
$0
Project Amount Expended
The objective of the ACFD Project is to facilitate United States International Development Finance Corporation (DFC) investment in Malawi in an effort to catalyze increased private investment consistent with compact objectives and increase the scale and impact of the compact.
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$44,107,000
Project Total Amount -
$597,124
Project Amount Committed -
$24,865
Project Amount Expended
The Increased Land Productivity Project will support improved land services, better functioning land markets, and increased investment in land through revenue-oriented investments to increase adequate funding of land institutions at national and city levels and support institutional change in the land sector. Revenue work at both levels equally focuses on the broader role of well-functioning property tax systems in incentivizing productive use of land.
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4,215,000
Estimated Beneficiaries -
12.8%
Estimated Economic Rate of Return