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Focal Areas in the German Bilateral Cooperation

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The focal areas of Germany’s bilateral cooperation are agreed in negotiations between the two governments.

As a long-standing and reliable partner since 1964, Germany supports the Malawian Government in achieving its Vision “Malawi 2063”, operationalized in its 10 Year Implementation Plan (MIP).

German Development Cooperation focuses on four core areas:

Private Sector Development in Rural Areas

Successful, inclusive private sector development is essential to Malawi’s development. Yet, Malawi's private sector, predominantly driven by agriculture and tourism, faces constraints such as limited access to finance, high borrowing costs, climate vulnerabilities, and infrastructural gaps.

To address these challenges, Germany's Development Cooperation has prioritized Private Sector Development in Rural Areas through the More Income and Employment in Rural Areas (MIERA) programme, aligned with Malawi's national strategies (Malawi 2063, ATM Strategy).

The support provided through theProgramme “More Income and Employment in Rural Areas (MIERA)” aims at income and employment creation, especially for smallholder farmers, women fand youths. MIERA focuses on the development of MSME's in the agricultural, tourism and the eco-friendly construction materials industry. Prioritizing climate adaptation - through climate-smart agriculture, renewable energy, and business resilience strategies - drives innovation, creates jobs, and supports long-term economic stability.

Health and Social Protection

Health and social protection are essential for safeguarding livelihoods, especially for Malawi's most vulnerable populations. The aim of German Development Cooperation in the health sector is to improve universal access to good quality essential services, with a particular focus on sexual and reproductive health.

Germany's support focuses on, amongst others, constructing and rehabilitating health facilities and equipping them with quality medical supplies, expanding access to family planning and reproductive health services, particularly for youth and rural communities, and strengthening coordination through district health offices for gender-sensitive and youth-friendly care.

With approximately 21 % of Malawians living in extreme poverty and high child stunting rates, Malawi's National Social Protection Policy and Strategy aims to strengthen safety nets and to build resilience.

The goal of German Development Cooperation is to support the Malawian Government in its efforts to reduce poverty through a strengthened social protection system. Germany plays a key role in supporting the implementation of Malawi's social protection policy and strategy, improving the national household database known as the Unified Beneficiary Registry (UBR) and fostering greater harmonization across various programmes. Particular emphasis is placed on the Social Cash Transfer Programme (SCTP).

Public Financial and Economic Management

Effective public financial and economic management (PFEM) is critical to Malawi's development, ensuring public funds are transparently allocated to achieve national goals. German Development Cooperation supports Malawi to strengthen capacities of government institutions responsible for public finances and the fight against corruption (e. g. Ministry of Finance, National Audit Office, Anti Corruption Bureau, Financial Crimes Court). This aims at improving economic governance and accountability for the use of public funds.

Food and Nutrition Security, Food Systems Transformation

Malawi faces persistent hunger and malnutrition, with 18 % of children stunted due to poor dietary diversity, climate shocks, and systemic food system challenges. Germany's support prioritizes multi-sectoral food systems transformation to enhance resilience, governance, and equitable access to nutritious diets.

Fact Sheets on Focal Areas

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