TIPDeP Malawi

17/09/2025

Growing Business Pains: TIPDeP Visit to Teren Agro Highlights Private Sector’s Hurdles

In a bid to gain a deeper understanding of the opportunities and challenges in Malawi's private sector, Development Partners in Trade, Industry, and Private Sector Development (TIPDeP) visited Teren Agro Limited on 9 September 2025. The visit provided valuable lessons on the farmer-impact enterprise’s growth trajectory and the Malawi business environment. Teren Agro Limited is a pioneering social enterprise currently working with over 1,000 soybean smallholder farmers in four cooperatives across Lilongwe and Dowa districts, producing high-quality floating fish feed, particularly for Tilapia. During the visit, the TIPDeP learned that Teren Agro Limited’s innovative fish feed has significant potential for import substitution, as most fish farmers in Malawi currently rely on imported fish feed.

As TIPDeP continues to explore ways to support Malawi's private sector, the visit to Teren Agro Limited highlighted the practical challenges that businesses face in the country. One of the key hurdles is managing short-term capital loans from commercial banks, a challenge that has forced Teren Agro Limited to restructure its debt obligations with its lender. Additionally, Teren Agro Limited highlighted that the business environment in Malawi is challenging, with systemic issues including limited access to long-term capital finance, foreign exchange shortages, and policy misalignment that puts local manufacturers at a disadvantage. Specifically, the company faces unfair competition from duty-free imported fish feed products, while having to pay duties on imported raw materials used in the production of the feed, further exacerbating the challenges of operating in the local market. Furthermore, Teren Agro Limited pointed out that the lack of standards for fish feed by the Malawi Bureau of Standards (MBS) is a significant gap, despite three years of engagement on the matter. TIPDeP reaffirmed its commitment to working with MBS to enhance certification capacity in critical value chains, including fish feed.

TIPDeP observed that in working with commercial banks on de-risking facilities, it is important for the banks to consider developing credit facilities that support operations and raw material acquisition for viable and growing companies. Additionally, commercial banks need to tailor loan facilities to serve as business partnerships with growing companies, enabling joint monitoring, restructuring, and management of the loans.

The TIPDeP members who participated in the visit included the EU, FCDO, the Flanders Government, AfDB, and JICA Malawi.

UK in Malawi,
European Union in Malawi,
UNDP Malawi,
Flanders Southern Africa,
JICA Malawi Office,
African Development Bank Group,
GIZ Malawi,
Teren Agro

17/09/2025

Private Sector Growth at the Forefront: TIPDeP's Annual Retreat Highlights

On Wednesday, 10 September 2025, Development Partners in Trade, Industry and Private Sector Development (TIPDeP) held an annual retreat at Kumbali Country Lodge in Lilongwe. The TIPDeP Annual Retreat is an excellent opportunity for Development Partners to step away from the office environment and engage in productive and structured discussions, focusing on the year's achievements and identifying priorities for the year ahead. Additionally, the event marked the official handover of the TIPDeP leadership from the EU Delegation handed over the TIPDeP’s Chair responsibility to UNDP for the 2025/26 year.

During the retreat, TIPDeP observed that limited access to finance for the private sector is one of the deterrent factors in Malawi to manufacturing and export development, which can help generate forex. TIPDeP reaffirmed its commitment to work with financial institutions to de-risk lending to the private sector.

In line with this goal, TIPDeP underscored that fostering honest and transparent policy dialogue is critical to creating an enabling business environment. Additionally, TIPDeP called on the government to ensure predictability of trade policies and regulations, break down silos across ministries, and drive honest dialogue with private sector stakeholders. TIPDeP reaffirmed its commitment to collaborating with the government on policy priorities and supporting their implementation.

More importantly, TIPDeP recognised the progress it made in engaging the government systematically over the past year, particularly the Presidential Delivery Unit (PDU), which is catalytic to alignment and coordinated efforts in addressing barriers to private sector growth. TIPDeP reaffirmed support for policy implementation and anticipates commitment from the Ministry of Trade and Industry toward consistent policy dialogue with the Development Partners.

As TIPDeP embarks on a new chapter under the leadership of UNDP, the grouping remains steadfast in its commitment to driving private sector growth and economic development in Malawi. With a renewed focus on policy dialogue, de-risking lending, and collaborative governance, TIPDeP is poised to contribute positively to unlocking new opportunities for the country's economic future.

UK in Malawi,
European Union in Malawi,
UNDP Malawi,
African Development Bank Group,
JICA Malawi Office,
Flanders Southern Africa,
GIZ Malawi

17/09/2025

TIPDeP Visit Naturals Limited in Lilongwe

Development Partners in Trade, Industry and Private Sector Development (TIPDeP) conducted a field visit to Naturals Limited (est. March 2013) in Lilongwe to jointly gain a deeper understanding of best practices and issues affecting private sector growth. Naturals Limited is a partner of the Malawi Innovation Challenge Fund (MICF), supported by UNDP and other development partners like UKAid (FCDO), KfW Development Bank, and IFAD. Naturals Limited (est. March 2013) accessed the MICF grant with a total project cost of US$609,043.42, of which MICF contributed US$296,623 and Naturals Limited provided a matching grant of US$324,419.42.

During the visit, the TIPDeP members learned of the distinct baobab flavour sourced from Neno District, which allows the Khathi-Khathi drink to have a unique product in the SADC region. In addition, the TIPDeP members learned about the impressive start of Naturals Limited, which began with three women in 2011 and grew to 35 employees by 2025. Through the journey, the TIPDeP learned of the incredible resilience of the company over the years to various macroeconomic and systemic challenges.

In addition, the TIPDeP got confirmation from Naturals Limited that the business environment in Malawi is harsh and systematic challenges include limited access to long-term capital and operational finance, forex shortage to import spare parts and packaging materials, as well as limited access to de-risking facilities to the borrower other than commercial banks.

TIPDeP encouraged Naturals Limited to explore other commercial financial facilities, such as equity financing, which provides capital to fund expansion, innovation, and acquisitions without the burden of debt repayment and brings in partners with expertise. TIPDeP observed that Naturals Limited should have grown to its current level five years ago if various commercial business growth windows other than grants were optimised.

TIPDeP also learned that policy and multisectoral support for the development of raw materials (on the input side) is weak, thereby causing a sustainability business risk. The call for science and research on the baobab production as a raw material, among others, is urgent.

The TIPDeP members on the visit included the EU, FCDO, UNDP, GIZ, AfDB and JICA Malawi.

UK in Malawi,
European Union in Malawi,
UNDP Malawi,
GIZ Malawi,
African Development Bank Group,
JICA Malawi Office,
Flanders Southern Africa,
International Fund for Agricultural Development (IFAD),
Malawi Innovation Challenge Fund

22/05/2025

UK Call for Action to Implement Mining Development Solutions

Her Excellency, Madame Fiona Ritchie, the British High Commissioner, emphasized the need for action on the solutions agreed upon at the Mining Delivery Lab, facilitated by the Presidential Delivery Lab from May 6 to 8, 2025. She pointed out that Mining provides a huge opportunity to increase exports, mobilise local resources, promote industry growth and facilitate community employment. The UK's support for the Mining Delivery Lab aims to strengthen the capacity of Malawian institutions and empower local communities to manage mining for national development. She tipped Malawi on the need to prepare for effective management of mining proceeds at a time when development aid is dropping.

The Vice President of the Republic of Malawi, Dr Michael Usi, officially opened the lab and called for transparency in mining processes across all mining sites to ensure the sector benefits the Malawian people. He urged everyone to move with unity, urgency, and transparency.

The Minister of Mining, Dr Kenneth Zikhale Ngoma, stated that the time has come to turn words into measurable outcomes, emphasizing that the government is committed to creating an enabling environment that attracts responsible investment, ensures equitable benefit sharing, and safeguards the country's natural resources.

UK in Malawi

05/03/2025

Enhancing Harmonization – Donors in Trade and Industry Hold Mid-Year Retreat

On Wednesday, 26th February 2025, Development Partners in Trade and Industry (TIPDeP) held a mid-year retreat workshop at the Grand Palace Hotel in Mzuzu. The workshop aimed to share information using an agreed PowerPoint deck to strengthen harmonization of funding to projects, review policy and legislative environment to inform a paper to be presented to the Heads of Cooperation (HOC), and reflect on key lessons from the visit to Kwithu Kitchen and Tropha Estates Limited.

During the retreat, the TIPDeP observed that there is potential for Malawi to increase exports through the macadamia value chain and enhance the import substitution of honey and chili. However, a study on understanding production and all other value chain issues in honey would be critical. Honey is viewed as an orphan crop in extension, technology, and budget support, resulting in compromised production.

The TIPDeP confirmed the need for extra effort to strengthen the harmonization of funded projects in innovative entrepreneurship skill development and Business Development Services (BDS). The TIPDeP also agreed to engage the Ministry of Trade and Industry to exercise its powers to ensure consistent and efficient quarterly Public-Private Dialogue forum meetings with tracked and reported actions. The TIPDeP also agreed to unlock and accelerate support for PPD forum reform by the IFC of the World Bank. To ensure synergy in policy dialogue with the government, the TIPDeP agreed to strengthen coordination with other donor groups, namely DCAFS Malawi, the Mining Donor Group, and the Energy Donor Group

European Union in Malawi, Ireland in Malawi, German Embassy Lilongwe, GIZ Malawi, Flanders Southern Africa, IFC Africa, UK in Malawi

04/03/2025

Tropha Macadamia Estate Hosts Development Partners in Trade and Industry

On Tuesday, 25th February 2025, Tropha Estates Limited in Ekwendeni, Mzimba, hosted Development Partners in Trade and Industry (TIPDeP). The TIPDeP members on the visit were from the European Union in Malawi, German Embassy Lilongwe, WB, GIZ Malawi, KfW, UK in Malawi, IFC, Flanders Southern Africa, Ireland in Malawi and AGRA-Sustainably Growing Africa’s Food Systems., led by the TIPDeP Chair, Bartek Studniarski of the EU Delegation. Tropha Estates Limited manages the 520-hectare Kaweche Farm. TIPDeP members were accorded an exclusive farm tour of the macadamia fields, nursery and the de-husking plant. The TIPDeP were encouraged to learn that despite the harsh macro-economic environment, such as forex shortage, high interest rates, low lending rates to the private sector and uncertain policy environment, Tropha estate plans to expand macadamia farming land with two additional estates based in Rumphi West covering a total of 776 hectares with support from FCDO through the Malawi Value Chain program which aims to break Malawi's cycle of low growth through driving exports. Tropha Estates export de-husked macadamia nuts, African birds' eye chilli, and paprika to regional and global markets.

During the visit, it was learned that Tropha Estates is a mega-farm success story in Malawi through, among others, community engagement in contracts (about 4,000 farmers engaged), land lease, and a year-running irrigation system. However, it was learned that farm development faces the high cost of tractor maintenance, irrigation infrastructure development, and ESCOM connection, making it difficult to have a competitive price on the global market. A key recommendation from the conversations was that legislation frameworks in Malawi must focus on attracting investors rather than compounding the challenges in business operations, a case of the RBM gazetted regulation on the 30 percent mandatory sale of export proceeds.

04/03/2025

Development Partners Visit Kwithu Kitchen in Mzuzu

Development Partners in Trade and Industry (TIPDeP) from the European Union in Malawi, German Embassy Lilongwe, WB, GIZ Malawi, KfW, UK in Malawi, IFC, Flanders Southern Africa, Ireland in Malawi and AGRA visited Kwithu Kitchen (KK), a women-owned food processing cooperative in Mzuzu on Tuesday, 25th February 2025. During the visit, the TIPDeP had a candid conversation with KK's team about the business environment, company development progress, access to finance and supply chain. It was encouraging to learn that KK is one of Malawi's largest on-shelf honey suppliers, with its brand and packaging substituting imported products.

However, there is a low production of raw honey in Malawi and KK plans to import raw honey from Tanzania. To ensure the packaging is competitive, KK imports packaging material from South Africa and South Korea, which is a downside to business development due to forex unavailability. In access to finance, KK depends on soft loans and can hardly sustain commercial credit rates. This underscores the concern about high interest rates in Malawi, reducing the business's ability to service debt due to the absence of a corresponding revenue.

TIPDeP toured the KK honey and tomato facilities showcasing bottling, storage units, and a newly purchased industrial factory. TIPDeP was delighted to learn that the KK team seized the Malawi kwacha devaluation as an opportunity for import substitution by the food retail chains and the hospitality industry.

07/02/2025

20th Malawi Economic Monitor (MEM)

On 30th January 2025, the World Bank launched the 20th Malawi Economic Monitor (MEM) titled “The Rising Cost of Inaction” with a special topic on “Unlocking the Potential of Malawi’s Mining Sector”. The bi-annual MEM publication aims to provide the Government and stakeholders with a general update on macro-fiscal trends and foster dialogue around economic development issues.

Speaking at the MEM launch, World Bank Country Manager Firas Raad underscored the three-pronged approach for the development of mining. First, developing the Energy Transition Minerals Roadmap, policy alignment at national and regional levels, boosting institutional capacity to negotiate MDAs. Secondly, effective policy implementation related to community resettlement, land conservation, labour and working conditions and safety. Thirdly, optimizing the governing fiscal arrangements improving tax administration capacity and transparency.

The MEM brings out macro-fiscal trends as follows:

1. Malawi’s economic recovery remains fragile due to the slow implementation of macroeconomic adjustment reforms and a series of recent shocks.
2. Food insecurity remains a major concern due to weak harvests from 2022 to 2024 and the likelihood of a challenging 2024/25 season.
Reform momentum has stalled while fiscal and external imbalances continue to increase, and the cost of inaction is rising.

MEM then recommends the following:
1. Adopting well-informed policies to enable the sustained growth of the mining sector;
2. Boosting the Government’s institutional capacity
3. Ensuring an efficient, effective, and transparent system to manage mining revenues for the economic welfare of the Malawian people.

The MEM is available on:
https://documents.worldbank.org/en/publication/documents-reports/documentdetail/099012625203049046/p50926919af6a5089188051de8491a1767d

Photo: Courtesy of Times 360 Malawi

14/11/2024

Micro, Small and Medium Enterprises in Malawi

From Malawi’s independence in 1964 onwards, the Government concentrated its efforts on the development of a
large-scale enterprise sector. Then in the late 1970s and early 1980s, the Government pivoted to embark on several
initiatives supporting the Micro, Small, and Medium Enterprises (MSMEs) sector. It recognised that the potential of
the MSME sector had not been fully exploited due to the absence of a concise policy to guide the development and
promotion of the sector.

Read More:

Donors Committee on Agriculture and Food Security (DCAFS) and Trade Industry and Private Sector Development Partners (TIPDeP) Official Website