More employment and income in rural areas along selected value chains (MIERA) II

The project More Employment and Income in Rural Areas along selected value chains (MIERA) II is integrated into the DC program More income and employment in rural areas. It contributes to the program objective "Employment and income, especially for poorer segments of the population in rural areas of Malawi, are increased along selected value chains (VC)" by promoting innovative smallholder farmers in production and processing, micro, small and medium-sized enterprises (MSMEs) in selected sectors (e.g. tourism) that are willing to develop and change, as well as in the sustainable design of the business environment via business associations such as cooperatives and via public actors (e.g. ministries). It potentially contributes to the program indicators through improved income and employment for the target group of the rural population. Based on the concrete needs, the project focus is on direct support for Micro Small and Medium Enterprises (MSMEs) and smallholder farms in cooperation with the respective governmental private partner structure. There is an emphasis on the promotion of women and young adults. The approach is complemented and sustainably anchored by Capacity Development measures for private and public intermediaries and by strengthening the representation of interests, which aim at improving the framework conditions. The project builds on the impact of previous German Development Cooperation measures (especially MIERA I) and supports the strategic development and implementation of programs of the implementing partner Ministry of Industry and downstream public and private partner organizations. The approach to identify and support innovative entrepreneurs in the broader context of the agricultural sector is at the core of the overall strategy to create more employment and income in rural Malawi. Experience from the previous project, MIERA I, shows that there are specific success factors for different models of rural income and employment creation. These different models have successfully linked private sector investments with small-scale producers* resulting in increased employment and income generation. Some of the models that were successfully tested in the previous project include the "outgrower- and anchor models". Common success factors of these models were mostly based on having an active "leading" company or group operating in different sections of the value chain. These companies, in turn, assumed that inputs would be supplied in enough quantity and sufficient quality. The partner organizations/ companies organize and provide the extension services and input supplies necessary to ensure quality products. These success factors identified in MIERA I therefore provide an optimal approach to identify innovative enterprises in different agricultural and non-agricultural value chains that have a good growth potential with a large number of rural beneficiaries. The methodological approach aims to support different actors to develop, adapt or adopt new and innovative ideas, approaches, technologies or organization forms that the rural sector becomes more competitive in a sustainable way. The identified agricultural Value Chains with growth potential are Macadamia nuts and Rice. As non-agricultural Value Chains with growth potential tourism is one of the most promising sectors with a great potential for new and innovative ideas. Climate-smart building materials was identified as the second non-agricultural Value Chain that offers the potential to grow and upscale. Development partnerships with the private sector (Public Private Partnership, PPP) are an important component of the project. In some of the selected value chains, work will be done with larger companies to promote broad-based business models and improve the capacity of MSMEs and smallholder farmers.