Enhanced Integrated Framework (EIF) Project

The EIF is an Aid for Trade (AfT) partnership in action for the Least Developed Countries (LDCs). The EIF is a global partnership involving LDCs, donors and international organizations, which support LDCs to be more active players in the global trading system by helping them tackle obstacles to trade. EIF activities are financed through a multi-donor trust fund, the EIF Trust Fund (EIFTF).

The operating principles of the EIF are effective use of trade as a development tool, ownership of in-country programme and projects funded (including the responsibility to identify trade development priorities and manage trade development activities with the support of the relevant national, regional and international bodies and donors); and partnership approach in accordance with the principles of the Paris Declaration on Aid Effectiveness (this includes the proposed trade SWAp).

The EIF programme has three objectives namely to:

1.      Integrate or mainstream trade into sectoral and national development strategies such as the Malawi Development Growth Strategy;

2.      Support structures needed to coordinate the delivery of trade related technical assistance; and

3.      Build capacity to trade, which also includes addressing critical supply-side constraints. The EIF Programme also aims to strengthen donors’ support to a country’s trade agenda and assist in coordinating donors’ support and to lever more Aid for Trade resources.

Malawi started implementation of the EIF project in September 2012 through the Ministry of Industry and Trade (MoIT) for a period of three years. ANaional Implementation Unit (EIF Secretariat) is based in the Ministry. There are two windows of operationalizing EIF namely; Tier 1 and Tier 2.

Under Tier 1, the project supports the national secretariat core functions to implement the EIF activities and strengthen institutional mechanisms for formulating, implementing, managing and monitoring Malawi’s trade capacity. In this way, the programme works towards a wider goal of promoting economic growth, sustainable development and helping lift more people out of poverty.  

The key Tier 1 expected results will include:

a)      Enhanced capacity to formulate and develop trade related policies and development strategies;

b)      Trade policy is mainstreamed into national development strategies and sectoral policies;

c)      Diagnostic Trade Integrated Study (DTIS) updated and Action Matrix priorities implemented and delivery of aid is coordinated in accordance with the identified prioritized needs;

d)     Trade-related information is efficiently disseminated ;

e)      Improved knowledge and skills among all the stakeholders (public, private and civil societies) to analyze and interpret trade-related information;

f)       Trained personnel in both the Ministry of Industry and Trade and trade promotion organizations.

The Tier 1 activities are expected to result into improved donor coordination, continued mainstreaming of trade into the next Malawi Growth and Development Strategy (MGDS2), and improved institutional capacity.

Under Tier 2 the project will also be used to leverage more funds for the implementation of Malawi’s trade development strategy and preparation of bankable projects to benefit from Aid for Trade. Briefs of priority projects that are under development for funding submission under Tier 2 window for the period 2013 – 2015 are;

1.0  SUPPLY CHAIN AND LOGISTICS DEVELOPMENT PROJECT (SCLP)

The Supply Chain and Logistics Development Programme (SCLP) Country Project for Malawi was a project implemented by the International Trade Centre (ITC) in collaboration with the Ministry of Industry and Trade and the Malawi Enterprise Zone Association (MALEZA) with finance from the  Government of Flanders, Belgium. Despite the success and huge potential the small scale farmers have demonstrated, lack of sustained financial support (at least for more than one year) has led to an abrupt stop of the project. Formal markets were just beginning to develop in 2010 when the financial crisis hit most of the European countries including the Flanders Government.

The proposed focus of the project in 2013, in light of the developments and lessons from Phase I of the project based on MIT evaluation of the project, will be capacity building of small holder farmers who are organized in farmer groups, associations and cooperatives to access domestic and international markets. The expected multiplier effect is that trade mainstreaming at enterprise level will be enhanced considering that most small holder farmers grow various crops for subsistence farming only. These farmers will influence policy is all areas of agricultural production, business environment (including access to credit for inputs and incentives to address logistical bottlenecks as well as international market access).

The overall objective of the SCLP Country Project for Malawi is to assist about 850 small holder farmers in Malawi's Dowa and Lilongwe districts to achieve higher incomes through improvements in the supply chain linking farmers to the domestic and international markets.

2.0  DEVELOPMENT OF ARTS AND CRAFTS INDUSTRY IN MALAWI

Tourism has the potential to generate revenue, employment and promotion of Micro, Small and Medium Enterprises as well as maintaining and reinforcing indigenous culture for attracting tourists.  Currently, the industry is constrained by poor supporting infrastructure, poor service delivery, uncoordinated and insufficient marketing of tourism products and inadequate purpose built infrastructure. Marketing of Malawi’s tourism products and training is earmarked as some of the key activities in the MGDS II.

One crucial sector in tourism is the arts and craft industry. The industry in Malawi is dominated by small scale producers and that provides government a readily available platform for exploiting initiatives that directly impact on poverty reduction. Although information on destination market is scanty and not easily accessible, it is estimated that small-scale producers accounts for approximately 9 percent of the exports.

Objective of the project will be to promote production, marketing and exports of unique arts and craft from Malawi’s micro, Small and Medium Enterprises as a means for poverty reduction, entrepreneurship development and export diversification.

 3.0  AGRO-PROCESSING AND VALUE ADDITION

The Malawi National Export Strategy (NES) has identified Manufacturing as one of the 3 priority clusters to drive export growth. This cluster is composed of four sub-clusters: agro-processing, beverages, plastics and packaging and assembly. This cluster has identified the lack of pro-development industrial policy, unpredictable tax policy, poor energy supply and the lack of anchor farms, industrial parks and special economic zones geared to exporters, as the major constraints to the manufacturing sector in Malawi.

This proposed project seeks to support the in the development of anchor farms, industrial parks and special economic zones for the agro-processing and beverages sub-clusters of the Manufactures Strategy. Overall, the project will be to enable the Government of Malawi to set a favourable enabling business environment, design and kick-start implementation of one pilot anchor farm and one pilot special economic zone.

 

For more information on EIF, visit www.enhancedif.org