The Green Economic Transition Facility (GETF) has opened applications for its Window 2, Round 3 funding cycle, offering grants of up to $300,000 to investors and entrepreneurs developing climate-smart business solutions in Malawi.
The launch, held Wednesday in Lilongwe, marks the continuation of a multi-partner initiative led by UNDP with support from the German Development Cooperation through KfW Development Bank, the Embassy of Ireland, and the Royal Norwegian Embassy.
GETF provides matching grants ranging from $40,000 to $300,000, plus up to $35,000 in technical assistance, for private sector projects that deliver environmental and socio-economic benefits.
UNDP Programme Coordinator Cinzia Tesse said the facility targets urgent environmental challenges facing Malawi, including deforestation, soil degradation, and biodiversity loss.
“Malawi is losing about 5.6% of GDP due to environmental damage,” Tesse explained. “We are losing about 32,000 hectares of forest every year, making us the second-worst affected country in Africa and fifth in the world.”
The initiative aims to incentivize private sector solutions that reduce pressure on natural resources while improving agricultural productivity for smallholder farmers.
“We want farmers to have a better understanding of what to plant, how to address soil degradation, and how to increase productivity levels to ease pressure on forests so the population has alternatives to cutting trees,” Tesse said.
German Development Bank Country Director Daniela Bese emphasized Germany’s commitment to supporting Malawi’s climate and economic priorities through private sector engagement.
“Promoting the private sector here in Malawi has a long history for us. Our journey started back in 2016 when we engaged for the first time with the private sector,” Bese said. “We hope to see more businesses providing green solutions that are accessible to poor people in Malawi.”
Since 2016, KfW has financed marketplaces throughout the country to provide economic infrastructure that helps businesses grow.
The program has already demonstrated success. Berias Unyulo, Managing Director of Mundawathu Limited Company and a beneficiary of a previous GETF window, said the funding transformed his business and surrounding community.
“I have grown exponentially since receiving the funding,” Unyulo said, urging other entrepreneurs to apply for the grants.
Project Manager Tambulani Chunga said 22 projects from previous funding rounds are currently at various stages of implementation, with the first 10 already operating in the market.
To qualify for funding, applicants must address specific environmental pressure points while prioritizing sustainability and conservation. The projects should create jobs and improve livelihoods, particularly for low-income groups, while reducing negative environmental impacts. They must promote scalable green initiatives through local partnerships, behavioral change campaigns, or innovative distribution models.
Proposals should clearly demonstrate affordability, accessibility, and acceptability among targeted communities and contribute to UN Sustainable Development Goals.
Chunga said GETF will engage extensively with the private sector to identify promising ideas and help develop full proposals.
The Expression of Interest (EOI) submission window opens November 26, 2024, at 7:00 p.m. Central Africa Time and closes January 10, 2026, at 11:59 p.m. CAT. Submissions outside this period will not be accepted.
