UK Aid

UK aid supports Malawi's economic development through a number of initiatives. These include direct financial assistance to businesses through the Malawi Innovation Challenge Fund and an Equity and Loans facility managed by AgDevCo. UK aid also seeks to support economic transformation in promising sectors that have the potential to significantly improve poor people's livelihoods, diversity the economy away from maize for food consumption, and tobacco for export. Sectors supported include rice and pigeon peas, in addition to oilseeds.  Both MOST (focused on oilseeds) and the Business Innovation Facility (focused on rice and pigeon peas) seek to address challenges facing their sectors, by working with Government, the private sector and other actors to unleash systemic change in markets. Challenges may for example be in the regulatory environment, in accessing quality inputs for production, in access to finance and in accessing lucrative markets. Through the Business Enabling Environment Programme, UK aid works with Government to support institutional change and a better policy environment, to encourage increased investment and trade. UK aid also has a number of 'centrally managed programmes' that aim to complement programmes designed and implemented by DFID Malawi.