Financial Access for Rural Markets, Smallholders and Enterprise Programme
Malawi is classified as a Least Developed Country, ranked at 173 out of 182 countries. It faces major challenges including drought, food insecurity and the HIV/AIDS epidemic. The poverty headcount stands at 50.7 per cent of the population, with 30 per cent of the people living in extreme poverty. The agriculture sector supports the direct and indirect livelihoods of over 80 per cent of Malawi’s population, provides the bulk of the raw materials required by the manufacturing industry, and contributes 40 per cent of total export earnings. Agriculture is the main foreign exchange earner, primarily from tobacco, sugar, tea, coffee and cotton.
FARMSE will be a nation-wide programme. It will work to support household economic development through access to financial services that are appropriate to each socio-economic level of poverty. This will include social payment graduation programmes, community-based financial organizations, financial cooperatives, micro finance institutions and commercial banks. Total programme beneficiaries will number about 430,000, of which an estimated 30 per cent will be women and at least 20 per cent will be young people.
Proposed loan and grant to the Republic of Malawi for the Financial Access for Rural Markets, Smallholders and Enterprise Programme
11 December 2017
2017 - 2025
Credit and Financial Services
Total Project Cost
US$ 57.73 million
US$ 42 million
Private sector local US$ 6.15 million
National Government US$ 9.58 million
DSF Grant/Highly Concessional