MALAWI REQUEST FOR FUNDS FROM THE BUSINESS FACILITATION

UNCLAS LILONGWE 000048 SIPDIS DEPT FOR EEB/CBA FOR DENNIS WINSTEAD E.O. 12958: N/A TAGS: BEXP MI SUBJECT: MALAWI REQUEST FOR FUNDS FROM THE BUSINESS FACILITATION INCENTIVE FUND (BFIF) REF: 09 STATE 126674 ¶1. Summary: This is a request for funds to conduct two programs: to foster increased trade through improving the business climate, and to build small business marketing capacity. Post's priority project is to conduct a training seminar on marketing skills for sixty small businesses mainly run by women entrepreneurs. Post's second proposal is to sponsor Mission participation at Malawi's annual trade fair and conduct a workshop in conjunction with this event to identify obstacles to greater utilization of AGOA. End summary. ¶2. Marketing Training Seminar for Small Businesses (a)Project Justification: The National Association of Business Women (NABW) in Malawi has been providing credit and training to its members to develop their businesses since 1990. This training has largely been concentrated on business technical skills development in poultry, bakery, fruit and vegetables, piggery and others. Marketing skills development has received little attention largely because it is expensive to source. (b)Expected Impact: This marketing training will help about sixty different small businesses most of them in the agriculture/agro-processing sector. The workshop will sharpen their skills in marketing and help them position their products/services properly in a very competitive marketplace of today. It is expected that knowledge gained from this workshop will help participants increase sales revenue, improving their incomes and standard of living. In addition to the NABW members we expect that grantees under the US African Development Foundation will also benefit from these workshops. (c)Marketing Training Deliverance: A reputable local consulting firm with bias in marketing will be identified and engaged. The firm will deliver a one-day session in Lilongwe and another one in Blantyre. At the end of each workshop an evaluation will be done. The firm will compile a report highlighting its observations on levels of marketing knowledge acquired by the participants. (d) Estimated Total Costs: USD 15,766 Costs include conference facilities for two one-day seminars, in Lilongwe and Blantyre, and consultant fees. �00A; (e)Proposed Dates of training seminars: Lilongwe: Tuesday, April 20 Blantyre: Friday, April 23 Total number of small business persons trained: 60 (f) Points of Contact: Daniel Daley, Economic and Commercial Officer Priston Msiska, Economic and Commercial Specialist ¶3. Interactive Workshop on Obstacles to Utilizing AGOA (a)Project Justification: Since being one of the first countries to access the AGOA program, Malawi has done little to take advantage of it and has seen its total AGOA exports decline after an initial strong start. The GOM is motivated to increase Malawi's utilization of AGOA and has initiated a dialogue with the USG on ways to better access the program. While attention has often been focused on product competitiveness, the most significant obstacles to greater AGOA utilization include weaknesses in the overall investment and business environment in Malawi. Post proposes to leverage AGOA, and the potential boost to economic development that it offers, to mobilize the GOM and the private sector to implement a broad range of reforms to the business environment. (b)Expected Impact: Post proposes to fund a U.S./AGOA booth at Malawi's annual International Trade Fair in May. Participation at Malawi's largest annual trade event will contribute significantly to private sector awareness and interest in AGOA opportunities. In conjunction with this event, Post proposes to hold an interactive workshop to explore the obstacles faced by Malawi's private sector when trying to access AGOA. In partnership with the USAID Regional Trade Hub in Botswana and representatives from the World Bank office in Malawi, the Mission will present a survey of external studies of the business climate in Malawi (World Bank, WTO) and solicit direct feedback from stakeholders in Malawi's business community. A final report from the workshop will include specific recommendations for regulatory and other structural reforms to improve the business/investment climate. (c)Planning milestones: Post will staff a USA/AGOA booth for the nine day duration of the Malawi Trade Fair. The proposed workshop would form part of an already started and still evolving initiative by the Ministry of Trade and Industry including GOM and private sector stakeholders. Objectives for the workshop will necessarily be refined as this engagement progresses. The final report will be produced within a month from the workshop, and will be made available to stakeholders and an action document. (d) Estimated Total Costs: USD 20,000 Costs include booth rental fees, per diem for booth staff, conference facilities for one two-day workshop in Blantyre, and travel allowances for 50 participants from Malawi. Participants from the Trade Hub and the World Bank will cover their own expenses. (e) Points of Contact: Daniel Daley, Economic and Commercial Officer Priston Msiska, Economic and Commercial Specialist BODDE