Contribution to international development report: 2017-2018

Chapter One - Malawi

1.1. Introduction

Scotland has special and historical links with Malawi that stretch back over 150 years to Dr David Livingstone and the Scottish medical missionaries. In 2005 the then First Minister, now Lord McConnell, signed a Co-operation Agreement with the President of Malawi agreeing that the two governments would collaborate on four key strands; civic governance, education, health, and sustainable economic development. In the Programme for Government 2017-18, the Scottish Government committed to continuing to work towards the renewal of its historic partnership agreement with the Government of Malawi - through a new Global Goals Partnership Agreement. That new Partnership Agreement was signed in April 2018 by Scotland's First Minister and Malawi's President Mutharika, on behalf of each Government.

The Scottish Government has continued to support Malawi with those four broad development strands since 2005. Currently, the Scottish Government funds 20 projects from the Development Assistance funding stream of the IDF. All of the projects that we funded in the Malawi 2015-18 Programme were originally designed to contribute to the UN Millennium Development Goals, which latterly became the UN Global Goals. We have selected only two here as case studies: Chance for Change - Rites of Passage programme and the Global Concerns Trust - Tools and Training for Livelihood programme, which are discussed more fully throughout this chapter. All of our Malawi projects, however, are summarised in Annex A and there are links to each project's End Year Reports.

This Chapter will also highlight the second and third funding streams of the IDF, through Police Scotland's capacity strengthening programme and the Investment Initiative, a match funding initiative designed to enable sustainable businesses in Malawi. The Chapter ends with a discussion on Sustainable Energy for All work.

1.2 Chance for Change - Rites of Passage

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1 No Poverty
3 Good Health and Well-being
4 Quality Education
5 Gender Equality
8 Decent Work and Economic Growth
9 Industry, Innovation and Infrastructure
10 Reduced Inequalities
11 Sustainable Cities and Communities
16 Peace, Justice and Strong Institutions

1.2.1. Background

Malawian townships in Lilongwe have a high level of youth unemployment. As a result, a large number of Malawian youths in these townships have reduced opportunities. This has led to a prevalence of poverty and high-risk behaviours, such as drugs and alcohol abuse, gang related activity, and unsafe sexual practices. This leads to high levels of prostitution, criminal behaviour and other high-risk activities.

1.2.2. The Project

The aim of the project was to reduce youth unemployment and increase youth engagement through a six month course and a placement.

1.2.3. Contribution to Development 2015-16 - 2017-18

952 young unemployed Malawians from project catchments areas have generated income through employment, self-employment, micro enterprises and other commercial activities. 1,481 young unemployed Malawians from project catchments areas have actively engaged with their communities through advocacy activities and voluntary activities.

1.2.4. Ben's Story

Ben is a 21 year old male from Malawi.

Ben joined the Young Entrepreneurs at Chisomo Children's' Club, where he focused on developing a business strategy. Whilst at the Young Entrepreneurs, Ben also attended workshops on personal effectiveness, which have greatly contributed to his new strategic skills. Ben now plans to start a business in brick laying using the skills he learnt and in the future he hopes to use his profits to open a shop that will sell cooking oil and agricultural products.

1.3 Global Concerns Trust - Tools and Training for Livelihood in Malawi

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1 No Poverty
2 Zero Hunger
3 Good Health and Well-being
4 Quality Education
5 Gender Equality
7 Affordable and Clean Energy
8 Decent Work and Economic Growth
10 Reduced Inequalities
13 Climate Action
15 Life on Land

1.3.1. Background

In Malawi, disabled men and women experience discrimination and exclusion from social, economic and political life. As a result, the disabled population experience a disproportionally high rate of poverty; in 2014, a fifth of the population living below the poverty line in Malawi had a disability. This issue is particularly felt by the people with disabilities in the rural areas of Malawi, as they have little access to disability aids, skills development programmes, education, or employment.

1.3.2. The Project

The Tools and Training for Livelihood in Malawi project aims to reduce poverty, to enhance economic sustainability and to improve the community integration of physically disabled women and men through vocational training and business support.

1.3.3. Contribution to Development 2015-16 - 2017-18

Eighty-seven disabled women and seventy-two disabled men from the Ntcheu, Nkhotakota and Salima districts have increased their income by an average of 344% because of the training.

68% of the graduates have actively passed their new skills onto others.

159 new businesses were created as a result of the programme.

1.3.4. Alex's Story

Alex is a disabled thirty-three year old from Mtchenjere Village. He is married with three children.

Alex used to make and sell charcoal for a living. The job only earned him MWK 30,000 (£33) per month and so he would struggle to support his family. He took part in a Tools and Training for Livelihood tailoring training programme, which also included business training, gender awareness and HIV/ AIDS prevention training.

When Alex finished the course, he was given a Singer sewing machine, a solar panel and enough materials to start a business. As a result, Alex has become a skilled tailor and now runs a successful tailoring shop. He has also taken on four students and has even invested in a small grocery business. Alex's income is now MWK 150,000 (£166) per month, an increase of over 400%. He is now able to meet all his family's day to day needs.

'The best thing about the training was getting a sewing machine. I love being a tailor. My life is now transformed.'

1.4 Police Scotland Programme

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3 Good Health and Well-being
5 Gender Equality
16 Peace, Justice and Strong Institutions

1.4.1. Background

'Capacity Strengthening' is the IDF's second funding stream. It provides funding to a number of partnered institutions from Scotland and our partner countries to enable peer-to-peer knowledge-sharing so that both institutions can strengthen their knowledge, harness expertise, skills and capacity, and empower their people.

The Police Scotland project began as a response to the Government of Malawi's 2016/17 Food Insecurity Plan. In the Plan, the Government of Malawi acknowledged the risk of violence in areas that had been affected by extreme flooding over the previous two years. Displaced women and children were at particular risk of abuse, such as transactional sex in exchange for food, water and shelter. The objectives of Police Scotland's project were therefore to:

reduce violence, abuse and exploitation of children in disaster affected districts and reduce the prevalence of gender based violence among disaster affected communities.

1.4.2. The Project

The aim of the Police Scotland Programme is to support the specialist training that Police Scotland are carrying out with police forces in Malawi and Zambia on tackling gender based violence and improving child protection.

1.4.3. Contribution to Development 2016-17 - 2017-18

To enact this programme, Police Scotland deployed Police officers who specialised in child protection and gender based violence to Malawi to give specialist training to the Malawian Police.

Although Zambia did not experience the same disastrous flooding as Malawi, the programme was latterly expanded to the Zambian police force. The Zambian Police Service also wished to develop the capacity of their officers in tackling gender based violence and improving child protection.

Assistant Superintendent Alexander Ngwala from the Malawi Police Service ( MPS) has expressed the impact of the partnership funded by Scottish Government:

" MPS is working in partnership with Police Scotland to strengthen our capacity to prevent and respond to violence against children and gender based violence. The assistance from Police Scotland is supporting MPS both technically and materially, with high quality training across all ranks, to enhance our knowledge and skills. The national ICT work stream will be transformational in how we record and manage crimes of this nature and provide a much enhanced service to vulnerable women and children, it will assist us in decision-making and policy formulation, putting victims first. The Police to Police support is multifaceted and exceptional, none more so than the sensitization strategy, creating awareness messages and dissemination through billboards and sustained radio programmes".

Figure 1.1. Assistant Superintendent Alexander Ngwala and Superintendent Shaun McKillop at Scottish Police College signing joint memorandum of understanding (MoU).

1.5 Malawi Investment Initiative - African Lakes Company Ltd

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8 Decent Work and Economic Growth
9 Industry, Innovation and Infrastructure

1.5.1. Background

The third funding stream of our IDF is focused on commercial investment, and currently funds our Malawi Investment Initiative. In October 2016, the Minister for International Development announced that the Scottish Government would contribute £1 million over a three-year period from the IDF to support investment in Malawian businesses. This contribution was match-funded by private investors based in Scotland providing a total business investment fund of £2 million for Malawi.

The investment is managed by a new Scottish company, the African Lakes Company Ltd ( ALC). The name revives the original African Lakes Company that was established in Glasgow in 1878 to develop trade as an effective way of displacing slavery in Malawi.

1.5.2. The Project

The Malawi Investment Initiative is intended to begin moving Malawi away from reliance on aid and towards a self-sustaining economy supported by trade and investment. To successfully secure a portion of this investment, business ventures will need to show that they have a positive social impact, as well as a financial return. This will be demonstrated through job creation and sustainable livelihoods.

1.5.3. Contribution to Development 2017-2018

This year the ALC concentrated on building an Investment Pipeline and on identifying investible businesses.

The ALC was also instrumental in rescuing Malawi Mangoes Ltd. Malawi Mangoes Ltd had previously been the Government of Malawi's model investment story but it ran into operational and financial difficulties. Through consultation with Malawi Mangoes Ltd, the ALC decided to approach Westfalia Fruit for fruit processing expertise and Old Mutual (Malawi) for investment. This process was firmly supported by the Government of Malawi and successfully brought the Malawi Mangoes Ltd back on track.

Additionally, in the year 2017-18 the ALC:

• Raised £1 million from private investors who are fully committed to investment in Malawi for ten years.
• Established a partnership with Old Mutual Investments (Malawi) and Global Tea and Commodities for co-investment in Malawian companies.
• Developed the pipeline of investment opportunities, which includes larger opportunities with co-investors and smaller investments on our own account.

1.6 Sustainable Energy for All ( SE4ALL)

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1 No Poverty
2 Zero Hunger
4 Quality Education
7 Affordable and Clean Energy
8 Decent Work and Economic Growth
9 Industry, Innovation and Infrastructure
10 Reduced Inequalities
11 Sustainable Cities and Communities
12 Responsible Consumption and Production
13 Climate Action
17 Partnerships for the Goal

1.6.1. Background

There are nearly 1.5 billion people around the world who do not have access to modern energy services and twice that number have to rely on wood, coal, charcoal or animal waste for cooking and heating. This lack of modern fuel access is a major barrier to eradicating poverty.

As a result, the then UN Secretary-General Ban Ki-moon launched the global Sustainable Energy for All ( SE4ALL) initiative in 2011 to improve energy access. He later described renewable energy at the Rio +20 as "…the golden thread that connects development, social inclusion and environmental protection." (Ban Ki-moon, 2012)

In 2012, Ban Ki-moon asked Scotland's First Minister to support the SE4ALL initiative, believing that Scotland has a significant contribution to make because of Scotland's leadership on renewable energy and climate change. The Scottish Government are now working towards delivering on that agreement, focusing on two specific areas of need where Scotland's strengths lie: policy support, and capacity-building.

SE4ALL has three interlinked objectives to be achieved by 2030:

• providing universal access to modern energy services;
• doubling the global rate of improvement in energy efficiency; and
• doubling the share of renewable energy in the global energy mix.

1.6.2. The Projects

In Malawi, an estimated 13.6 million currently live without electricity, which is more than 90% of the population. Further to this, energy generation and supply is one of six key priority areas within the most recent Malawi Government Development Strategy, and as such is seen as a priority for investment.

In 2017-18, the Scottish Government funded four projects in Malawi that contribute to the SE4All agenda:

University of Strathclyde - Sustainable Off-Grid Electrification of Rural Villages

The overarching aim of the Sustainable Off-Grid Electrification of Rural Villages ( SOGERV) project has been the SE4ALL goal of increasing energy access in Malawi, as electricity access is currently only 9% overall, and 1% in rural areas.

Working in Chikwawa District, SOGERV set out to establish sustainable energy businesses, testing alternative business models and establishing long-term support structures. Four community energy providers have been established in the villages of Mandrade, Kandeu, Thendo and Gola. These energy providers have a 4kW solar array, and have acted as "hubs", providing a range of renewable energy services, including battery charging, power connections for small business, solar energy system rentals and the sale of Pico Solar products.

As a result of the establishment and maintenance of these providers:

• 795 households are purchasing renewable energy services and products.
• 10 small businesses are paying for electricity supplied from providers.
• 2 schools and 2 health clinics have power and lights.

University of Strathclyde - Community Energy Malawi Sustainability Extension

This project's aim is to provide support to Community Energy Malawi ( CEM) to continue their work; developing a community approach to renewable energy implementation in Malawi, with a focus on sustainable development. The funding will enable CEM to retain invaluable knowledge and skills developed by team members.

The ultimate goal is to support CEM to self-sufficiency as an internationally renowned social enterprise, supported through their own proposals to funding initiatives. In working towards this goal and beyond, CEM will continue to be an in-country partner organisation for the University of Strathclyde, thus enabling high quality research on renewable energy sustainability in the context of developing countries.

As a result of the support that has been provided to CEM:

• A report has been delivered to the Scottish Government and the Government of Malawi on the effectiveness of decentralised energy policy and the appointment of District Energy Officers, demonstrating their impact.
• The sustainability and future of Community Energy Development Programme projects has been mapped.
• A full feasibility study and business plan for an Energy Hub development in Malawi has been conducted. This outcome will support future investment and funding for an Energy Hub in Malawi.
• An active online consortium has been established, led by the University of Strathclyde, with useful events and communications for mini-grid development in Malawi and internationally.

The Wood Group - Powering Development in Mulanje

Powering Development in Mulanje increases access to sustainable electricity to catalyse social and economic development for people living in poverty. The project is implementing a micro-hydro mini-grid to supply electricity to off-grid villages. The Wood Group is conducting this project in concert with local partner the Mulanje Energy Generation Agency ( MEGA).

As a result of Scottish Government support for this project:

• There is an operational micro-hydro system and mini-grid network distributing electricity to communities in the area.
• Communities are helped to use electricity in productive ways.
• Trees, bamboos and grasses have been planted to improve watershed catchment and minimise flash flood impact, and provide fuel wood and food for households.
• District extension workers and communities have been trained on conservation, water management and climate issues.

International Resource and Recycling Institute - Enhancing Stability for Rural Off-Grid Energy Kiosks

This project is aimed at supporting the restructuring of two energy kiosks in the Dzenje and Bvumbwe regions that were originally set up in 2012/13. These are small community-based energy enterprises aimed at increasing local private use of renewable energy technology and have been equipped with a diverse range of products for sale, as well as alternative income strategies.

This project has:

• Provided income generating activities for kiosks.
• Repaired broken devices which can be re-sold or re-rented.
• Trained Malawians in market strategy and local marketing support.
• Built capacity building/training for entrepreneurs.
• Installed an updated e-customer and stocks management system.