Transparency in Debt Accrued by State-Owned Enterprises | AF MWI FY22 01

Opportunity Information: Apply for AF MWI FY22 01

The U.S. Embassy in Lilongwe (Department of State, U.S. Mission to Malawi) announced a Fiscal Transparency Innovation Fund (FTIF) grant opportunity focused on improving transparency around debt accumulated by state-owned enterprises (SOEs) in Malawi. The central aim is to support a project that examines how SOE debt is accrued, tracked, and disclosed, and then uses that work to increase public visibility and oversight of these financial obligations. By making SOE debt clearer and easier to scrutinize, the project is intended to strengthen accountability, discourage irresponsible borrowing and potential corruption, and ultimately support better economic governance in a sector that represents a large share of national economic activity.

The opportunity is framed around a major gap in Malawi's public financial information environment. Malawi has about 71 SOEs that provide essential public services and goods such as water, electricity, and education, and they also play roles in regulation, fair trade enforcement, and quality assurance. Despite their importance and scale, their finances are described as opaque, with limited readily available information on overall profits and losses. Because SOEs may take on debt to cover operational losses, their borrowing can create significant fiscal risk for the country. The description notes that the Government of Malawi has sometimes used general budget funds to pay down SOE debt, which means SOE liabilities can spill over into public finances and affect broader budget priorities.

A specific concern highlighted in the notice is that official reporting does not provide enough detail to allow meaningful public oversight. The Ministry of Finance and Economic Affairs annual debt report reportedly offers only limited information on loan guarantees to SOEs as well as their debt levels and repayment status. This lack of consistent, detailed disclosure makes it difficult for watchdog civil society organizations and journalists to monitor SOE financial management, identify problematic patterns, or press for corrective action. The U.S. Department of State's 2021 Fiscal Transparency Report is cited to reinforce the point that Malawi's fiscal transparency would improve by disclosing all SOE debt, which aligns directly with the grant's transparency and accountability objectives.

In practical terms, the award is a discretionary grant with a ceiling of up to USD 50,000, and the maximum period of performance is up to 24 months. The funding opportunity is identified as "Transparency in Debt Accrued by State-Owned Enterprises" (Funding Opportunity Number AF MWI FY22 01), categorized under the funding activity area of Law, Justice, and Legal Services (CFDA 19.662). Eligible applicants include nonprofits that do not have 501(c)(3) status with the IRS, other than institutions of higher education. The notice indicates an expected number of awards of 20. The opportunity was created May 1, 2022, with an original closing date of July 15, 2022.

Overall, the grant is designed to catalyze a focused, time-bound effort to bring SOE debt out of obscurity and into a space where it can be tracked, questioned, and managed more responsibly. The intended public benefit is not just better information for its own sake, but stronger oversight that can push SOEs toward more efficient operations and reduce the likelihood that hidden or poorly managed debts become a wider burden on Malawi's public finances.

• The Department of State, U.S. Mission to Malawi in the law, justice and legal services sector is offering a public funding opportunity titled "Transparency in Debt Accrued by State-Owned Enterprises" and is now available to receive applicants.
• Interested and eligible applicants and submit their applications by referencing the CFDA number(s): 19.662.
• This funding opportunity was created on May 01, 2022.
• Applicants must submit their applications by Jul 15, 2022. (Agency may still review applications by suitable applicants for the remaining/unused allocated funding in 2026.)
• Each selected applicant is eligible to receive up to $50,000.00 in funding.
• The number of recipients for this funding is limited to 20 candidate(s).
• Eligible applicants include: Nonprofits that do not have a 501(c)(3) status with the IRS, other than institutions of higher education.

Apply for AF MWI FY22 01

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