MAFECO has recently entered into a significant agreement with Gesellschaft für Internationale Zusammenarbeit (GIZ) for a Local Subsidy Award. This collaborative effort aims to provide essential capacity-building activities to cooperatives, fostering growth and sustainability within the cooperative sector in Malawi.

Key Capacity-Building Activities:

1. Statutory Audits for Cooperative Unions:

   • MAFECO, in collaboration with GIZ, will conduct statutory audits for three Cooperative Unions. This initiative underscores a commitment to ensuring compliance with regulatory requirements and enhancing financial transparency within these unions.

2. Capacity Building in Bookkeeping and Accounting:

   • Another vital aspect of the agreement involves conducting capacity-building training in Bookkeeping and Accounting. This training will be extended to two Cooperative Unions along with their primary societies. By focusing on financial literacy, this activity aims to empower cooperatives with the necessary skills for effective financial management.

3. Facilitation for the Formation of Northern Region Dairy Cooperative Union:

   • The partnership between MAFECO and GIZ includes facilitation efforts for the formation of the Northern Region Dairy Cooperative Union. This strategic move aims to bring together dairy-related cooperatives in the Northern Region, fostering collaboration and collective strength in the dairy sector.

Project Timeline and Financial Allocation:

1. Duration of Activities:

   • The capacity-building activities outlined in the agreement are scheduled to run from October 1st to December 31st, 2023. This condensed timeline suggests a focused and timely implementation of the specified initiatives.

2. Local Subsidy Award Amount:

   • The Local Subsidy Award from GIZ to MAFECO for these activities is MwK27,000,000. This financial support signifies GIZ’s commitment to investing in the development and empowerment of Malawi’s cooperative sector.

Strategic Focus on Capacity Building:

1. Comprehensive Audits: The inclusion of statutory audits demonstrates a commitment to ensuring financial accountability and compliance within Cooperative Unions, aligning with best practices in governance.

2. Empowering Financial Literacy: The capacity-building activities in Bookkeeping and Accounting reflect a strategic focus on empowering cooperatives with essential financial literacy, which is crucial for their long-term sustainability.

3. Regional Cooperative Union Formation: The facilitation for the formation of the Northern Region Dairy Cooperative Union reflects a broader vision for cooperative collaboration, aiming to strengthen specific sectors, in this case, the dairy industry.

In conclusion, the Local Subsidy Award agreement between MAFECO and GIZ represents a collaborative effort to enhance the capacity and sustainability of cooperatives in Malawi. By addressing key areas such as statutory audits, financial literacy, and regional union formation, this partnership contributes to the overall development and resilience of the cooperative sector within the specified timeline and financial framework.