Groundnut farmer in Malawi

Priority area Private sector development in rural areas Creating jobs and incomes

Private sector development in rural regions has been a priority area of development cooperation between Germany and Malawi since 2014. The aim is to create employment and income opportunities in rural areas, and to improve people's nutrition. The measures are designed so that they support women and young adults in particular.

The central focus is on optimising selected value chains (such as those involving cassava, groundnuts, soybeans, sunflowers, tourism and environmentally sound building materials) – for example, by improving the production and processing of local products in order to make them more marketable both at home and abroad. To achieve this, collaborative projects are being fostered where the private sector teams up with small farmers who have so far not been able to produce any surplus or had access to markets for their produce. Small and medium-sized enterprises, and their lobby or interest groups, are also being helped on.

Furthermore, funding from the “One World – No Hunger” initiative is being used to finance an “innovation centre for the agriculture and food sector” in Malawi. The services offered by the centre include agricultural education and training as well as extension services.

In addition, Germany is also supporting measures to improve the nutritional situation of pregnant women, mothers and infants, and to give small and medium-sized agricultural enterprises access to loans which they can use to procure seeds, fertilisers and agricultural machinery. A further project is aimed at improving the availability of fish and fish products and at enhancing income opportunities from sustainable aquaculture.