The Malawi Innovation Challenge Fund (MICF), opened two funding windows worth $3.9 million, offering bailout packages for businesses that are struggling to operate amidst the coronavirus pandemic.

The sum has split $2.7m for businesses with potential to leverage producers to scale and grow products likely to experience supply shortages while the rest is targeting financial institutions, digital financial operators and non-bank financial institutions.

Announcing the initiative to journalists, MICF Fund Manager, Navin Kumar, outlined that the two windows will help private sector players strengthen their resilience against possible effects of Covid-19. “The rationale behind opening these windows is directly linked to the Covid-19 pandemic. Of course in Malawi we might not have seen the implication as seen in other countries but the ripple effect is bound to hit us in the months to come.” he said.

The Malawi Innovation Challenge Fund (MICF) is a $22m competitive, transparent mechanism that provides grant finance for innovative, inclusive business projects within the manufacturing, agricultural, irrigation and financial sectors within Malawi. Supported by the United Nations Development Programme, UK Aid, IFAD through the PRIDE Programme, Federal Republic of Germany through KFW, and the Royal Norwegian Embassy, the MICF is designed to be a quick, responsive mechanism that is not overly bureaucratic and understands the needs of the private sector.