Sustainable Agriculture Production Programme II in Malawi has announced the Funding for Call for Expression of Interest for the Award of Matching Grants Under the Farmer Challenge Fund, Window 2 (Agro Processing & Value Addition Window). Interested candidates are encouraged to submit their applications before the closing date on May 8, 2026. Ensure you read through the official notice below to confirm you meet the requirements before applying. Please ensure to mention you found this opportunity on NyasaJobs.com website when submitting your CV and application to the employer or when making online applications for organizations.

CALL FOR EXPRESSION OF INTEREST FOR THE AWARD OF MATCHING GRANTS UNDER THE FARMER CHALLENGE FUND, WINDOW 2 (AGRO PROCESSING & VALUE ADDITION WINDOW)
Country: Malawi
Project Name : Sustainable Agriculture Production Programme II
Reference no.: 019/SAPP 11/CS/IND_1/2025/26
Date of Issue: 25th April, 2026

1.0. Introduction
The Government of Malawi (GoM), through the Ministry of Agriculture, Irrigation & Water Development, is implementing Sustainable Agriculture Production Programme II (SAPP II) within the administrative districts of Mzimba (Mzimba North & South), Dowa (Dowa East & West), Lilongwe (Lilongwe East & West), and Balaka. The programme is being financed by the International Fund for Agricultural Development (IFAD), the European Union (EU), and the Government of Malawi (GoM).

The Programme goal is to contribute towards wealth creation and improve food and nutrition security among the rural population of Malawi. The Project Development Objective (PDO) is to commercialize. agriculture production and enhance the resilience and productivity of smallholder farming systems of rural men, women and youth in selected districts of Malawi by 2030″.

Under Component 2 of promoting the commercialization of smallholder farming systems, SAPP II is implementing the Farmer Challenge Fund (FF), which seeks to provide Matching Grants to local farmer groups, women, men, and youth to implement upgraded agricultural production systems. The purpose of the FCF is to serve as a rural financing instrument that catalyses the Commercialization Agenda of SAPP II, with the immediate objective of providing sustainable financing to producer groups to address constraints hindering the competitiveness of the targeted value chains under SAPP II. The value chains promoted are specific to districts and are indicated in the table below:

LILONGWE	BALAKA	DOWA	MZIMBA
Maize Soybean Groundnuts, Goats	Maize, Pigeon peas, Goats, Tomato, Local chickens	Soybean, Groundnuts, Common beans, Goats, Local Chickens, Tomato, Maize	Maize, Soybeans, Groundnuts, Beef, Goats, Honey and Tomato.

2.0. Categories of Matching Grants Under Sapp II

2.1. Production Window, which seeks to prioritise financing to producer groups that are facing constraints related to improving production and productivity, with foreseen financing needs in accessing improved seed varieties, animal genetics and breeds

2.2. Agro-processing and Value Addition Window – Which will prioritise financing towards the purchase of assets and equipment for agro-processing in the target value chains, as well as improve quality standards as part of market integration

3.0. Window 2: Agro-Processing And Value Addition Window
SAPP Il is inviting Expression of Interest from eligible farmer organizations from
SAPP II implementing districts to apply for the FCF matching grants under the value addition and agro-processing window.

3.1. Investments eligible for Agro-processing and Value Addition Window

Eligible investments under Window 2 shall include agro-processing, value addition, product handling, packaging, storage, cold-chain, quality improvement equipment and related infrastructure directly linked to the commercialisation of eligible value chains. Illustrative examples include grading equipment, mills, processing equipment, oil extraction equipment, stitching machines, cold rooms, aggregation centres, warehouses, cold stores, processing centres, packaging equipment and other related assets. Production inputs, land preparation equipment, and primary production infrastructure shall normally fall under the Production Window and shall not be financed under Window 2 unless specifically approved.

3.2. Investments that are Ineligible for the FCF grants SAPP II will NOT support the following investments under the FCF matching grants.

• Banking and insurance services.
• Debt repayment (Refinancing of existing or old loans from other financing institutions).
• Paying for the rental of buildings or land.
• Projects/investments that are already being funded by other sources.
• Projects involving religious or political activities.
• Core funding, salaries, general running costs which are not attributable to success of the project.
• Pre-project implementation activities like preparation of proposals.
• Enterprises that are not part of value chains being promoted by SAPP II.

In addition, SAPP II shall not support activities that are unlawful, environmentally or socially non-compliant, already financed from another source for the same purpose, or investments requiring permits or approvals that cannot reasonably be obtained.

5.0 Definition of the Farmer Group in the context of Farmer Challenge Fund

• An organised group with a minimum of 10 farmers from different households, engaged in active agricultural and/or agro-processing activities. Registration shall not be mandatory at EOl stage; however, shortlisted applicants may be required, prior to final approval, to provide acceptable evidence of legal existence, recognition or authority to receive grant support.
• Group that has a membership of individual persons that have a common bond. Group that is either village based or has a wide geographic coverage e.g. Village (Group Village)’ Ward, Traditional Authority.
• Group that has a specific enterprise/service to offer to its members as laid down in the eligibility criteria.

As part of the programme’s inclusion objectives, at least 50% of the membership of the group should be women and at least 30% should be youth. Inclusion of persons with disabilities shall be encouraged and favourably considered.

5.0 Eligibility Criteria for Window 2: Agro-processing and Value Addition

The Expression of Interest (Eol) is a pre-selection stage, and only shortlisted applicants shall proceed to full proposal/business plan development.

Farmer groups applying under Window 2: Agro-processing and Value Addition shall be required to meet the following eligibility criteria:

1. The applicant must be a farmer group, producer organisation, cooperative, association or similar collective entity operating within a SAPP II implementing district.
2. The farmer group should have written norms/constitution with clear objectives.
3. The applicant must have a minimum of 10 members from different households and families.
4. The applicant must have a written constitution, by-laws, rules or other documented governance arrangements with clear objectives, leadership structure and decision-making procedures.
5. The applicant must be recognised by relevant local structures and authorities in the area of operation.
6. At least 50% of the group membership should be women, and at least 30% should be youth. Inclusion of people with disabilities should be encouraged and favourably considered. Women-only and youth-only groups may receive special consideration in line with the programme’s inclusion objectives…
7. The proposed investment must fall within the eligible agro-processing and value addition activities under Window 2 and must support one or more SAPPII priority value chains in the applicant’s district. The proposed investment must demonstrate a clear commercial rationale, including identified market opportunities, expected benefits to members and potential benefits to surrounding communities..
8. The applicant must not be in default under previous grants, loans or similar financing arrangements, where applicable.
9. The applicant must demonstrate capacity and commitment to operate, maintain and safeguard the proposed assets or equipment.
10. The farmer group has identified a realistic target market to be competitive.
11. The applicant must disclose any existing or proposed funding for the same investment and confirm that no double financing shall occur. Any investment already financed, in whole or in part, from another source for the same purpose shall be ineligible.
12. Shortlisted applicants may be required to provide further evidence of legal status, leadership structure, contribution capacity, site readiness, environmental and social compliance, and any permits relevant to the proposed investment.
13. Where relevant to the proposed investment, the applicant group shall demonstrate lawful access to the proposed project site, operating premises, or installation site.
14. Special consideration will be given to women only and youth only groups.
15. The requested grant amount shall not exceed USD 10,000 per approved proposal. The SAPP II contribution shall not exceed 80% of the total approved investment cost. The beneficiary group shall contribute a minimum of 15% in kind and 5% in cash. Shortlisted applicants shall be required at full proposal stage to demonstrate how the proposed contribution will be financed, valued and verified.
16. Support under Window 2 shall be directed toward eligible agro-processing and value addition investments, including equipment, assets, product handling, packaging, storage, quality improvement, cold-chain facilities and related infrastructure approved under the matching grant arrangement. Production-oriented inputs and equipment falling under the Production Window shall not be financed under this window unless expressly justified and approved by SAPP II.

6.0 Selection and Evaluation Process

Applicants are encouraged to obtain the Eol forms from the SAPP II District Agriculture Offices.

Completed EOls shall first be screened by the District Independent Grant Review Committee (IGRC) for compliance with the published eligibility requirements. EOls meeting the eligibility requirements shall then be shortlisted using a standard assessment framework based on relevance to Window 2, alignment to eligible value chains, market orientation, feasibility, expected benefits, inclusion of women and youth, operational readiness, and environmental and social suitability. The EOl screening and shortlisting process shall, at a minimum, consider:

1. eligibility of the applicant group;
2. alignment of the proposed investment with eligible value chains and Window 2 objectives;
3. commercial viability and market orientation of the concept; expected benefits to members, including women and youth; operational readiness and capacity of the group; and
4. environmental and social suitability of the proposed activity.

Where the number of eligible EOls exceeds the available capacity for shortlisting, applications shall be prioritised using the same published criteria through a documented review process. Applicants shall submit the completed Eol together with the following minimum attachments:

1. a membership list showing names, sex, age category of members and National identity card number of each member
2. evidence of group constitution, by-laws or governance arrangements; and
3. a letter of endorsement or confirmation from the relevant local authority where the group is located.

SAPP II may request additional verification documents, including identity documentation, at the shortlisting or due diligence stage.

Only shortlisted applicants shall proceed to the next stage for business proposal development and further due diligence. Shortlisting at EOl stage shall not constitute approval for grant financing.

A complete EOl submission shall include: the completed EOl form; membership list showing names, sex and age category of members; evidence of constitution, by-laws or governance arrangements; and a letter of endorsement or confirmation from the relevant local authority. SAPP I may request additional documents at shortlisting or due diligence stage.

8.0 Post Eol Process

The post-EOl process shall follow this sequence: EOl submission; eligibility screening and shortlisting; orientation and support for preparation of full business proposals; technical, financial, fiduciary, environmental and social due diligence; approval decision; and grant agreement and disbursement, where applicable.

9.0 Environmental and Social Safeguards (SECAP and Grievance Redress Mechanism (GRM)

All shortlisted proposals shall undergo environmental and social screening in line with applicable SECAP requirements in order to identify potential environmental and social risks and impacts. Investments assessed as high-risk, non-compliant, or requiring mitigation measures beyond acceptable limits may be rejected or approved subject to specified mitigation actions. Complaints or grievances may be submitted through the programme grievance redress mechanism using the channels specified in the application package and district offices.

10.0 Conflict of Interest, Fraud and Corruption

Applicants shall disclose any actual, potential or perceived conflict of interest that may arise in connection with this Call, the preparation of the EOl, or the proposed investment. Such disclosure shall be made in the prescribed declaration included in the EOl form. Failure to disclose a conflict of interest may result in disqualification.

SAPP II shall not tolerate fraud, corruption, collusion, coercion, obstruction, money laundering, terrorist financing, misrepresentation, forgery, or any other prohibited practice in connection with this process. Any applicant found to have engaged in such conduct, or to have submitted false, misleading or incomplete information, may be rejected or disqualified and may be subject to further administrative or legal action in accordance with applicable rules and procedures.

SAPP II shall not tolerate fraud, corruption, collusion, coercion, obstruction, money laundering, terrorist financing or any other prohibited practice in connection with this process. Any applicant found to have engaged in such conduct may be disqualified from the process and may be subject to further administrative or legal action in accordance with applicable rules and procedures.

11. Submission of Expression of Interest

All Expressions of Interest, clearly marked ‘EOl for Window 2: Agro-processing and Value Addition should be submitted to the following address by 8th May 2026 at 10:00 am as follows:

Farmer Groups for Balaka
The Director of Agriculture Services
Balaka District Council
P/Bag 1
Balaka

Farmer Groups for Lilongwe
The Director of Agriculture Services
Lilongwe District Council
P/Bag 347
Lilongwe

Farmer Groups for Dowa
The Director of Agriculture Services
Dowa District Council
P/Bag 51
Dowa

Farmer Groups for Mzimba
The Director of Agriculture Services
Mbelwa District Council
Bo 132
Mzimba

Late submissions shall not be considered.

SAPP II reserves the right to verify any information submitted, request clarifications or additional supporting documents, reject incomplete or non-responsive applications, cancel or amend this Call, and not proceed with shortlisting or approval without incurring liability to any applicant.