Malawi Transport and Land Compact

Malawi is a landlocked country in southeast, sub-Saharan Africa, which gained independence from the United Kingdom in 1964. Historically a strong democracy, Malawi has enjoyed policy stability compared to many of its regional peers.

Malawi completed a $350.7 million energy-focused compact in September 2018, meeting compact targets and moving the energy sector closer to long-term sustainability. In December 2018, MCC’s Board of Directors selected Malawi as eligible to develop a subsequent compact in recognition of Malawi’s strong scorecard performance, robust partnership with MCC, and success in completing its first compact.

MCC and the Government of Malawi together identified the country’s key constraints to economic growth, which drive the focus of this $350 million compact in addressing the high price of road freight transport service and access to land for investment.

Financials

Compact Budget

Milestones

  • Signed:
     September 28, 2022

Compact Projects

Accelerated Growth Corridors (AGC) Project

The AGC Project aims to reduce the barriers between farm and market by improving road conditions, encouraging a more transparent and competitive business environment for transporters, and addressing first mile transportation challenges for smallholder farmers. The project will support policy and institutional reforms to enable better road planning and maintenance of AGCs and associated infrastructure, as well as safer conditions for women to move and conduct economic activity along the corridors.

American Catalyst Facility for Development (ACFD) Project

The objective of the ACFD Project is to facilitate United States International Development Finance Corporation (DFC) investment in Malawi in an effort to catalyze increased private investment consistent with compact objectives and increase the scale and impact of the compact.

Increased Land Productivity Project

The Increased Land Productivity Project will support improved land services, better functioning land markets, and increased investment in land through revenue-oriented investments to increase adequate funding of land institutions at national and city levels and support institutional change in the land sector. Revenue work at both levels equally focuses on the broader role of well-functioning property tax systems in incentivizing productive use of land.

As of October 24, 2022