Strengthening Transparency and Governance in Malawi’s Extractive Industry and Public Debt Management | DOS AF MWI FY24 01

Fiscal Transparency Innovation Fund (FTIF) Malawi Grant - FAQs

1) What is this grant opportunity?

This is a Fiscal Transparency Innovation Fund (FTIF) grant offered by the U.S. Embassy in Lilongwe to support a project that improves transparency and governance in Malawi's extractive industry and strengthens how Malawi publishes and manages public debt information.

2) What is the main purpose of the project?

The project is designed to make it easier for the public, oversight bodies, and investors to understand how mining rights are granted, how mining revenues are collected and used, who ultimately benefits from extractive companies (beneficial ownership), and how government borrowing is evolving, including debt tied to state-owned enterprises.

3) Why is the grant focused on transparency in extractives and debt?

The opportunity frames improved transparency as a way to reduce corruption risks, strengthen oversight, support better fiscal discipline, and create a more predictable environment for responsible investment. It also highlights that weak debt transparency can limit parliamentary and public oversight, and that excessive or poorly tracked borrowing is a key contributor to Malawi's economic instability.

4) What specific transparency gaps does the program target in the extractive sector?

On the extractives side, the program emphasizes:

• Public access to information about mining licensing and contract awards, including the processes behind awarding these rights.
• Beneficial ownership monitoring (identifying the real individuals who own or control companies involved in the sector).
• Mining revenue collection and how mining revenues affect government borrowing, linking natural resource income to fiscal decisions and debt accumulation.

5) What is meant by "beneficial ownership monitoring" in this opportunity?

Beneficial ownership monitoring refers to identifying the real individuals who ultimately own or control companies operating in the extractive sector. The opportunity describes this as an important pressure point for hidden conflicts of interest and illicit financial flows, and an area where improved scrutiny can reduce the space for illicit practices and corruption.

6) How does the grant relate to EITI (Extractive Industries Transparency Initiative)?

A central purpose of the grant is to help Malawi strengthen compliance with Extractive Industries Transparency Initiative (EITI) standards. By improving the availability and quality of extractives-related information, the project is intended to support stronger transparency practices aligned with EITI expectations.

7) What kinds of results are expected on the extractives side?

Expected results described in the opportunity include:

• Clearer and more open contracting and licensing practices.
• Reduced space for illicit practices and corruption through beneficial ownership scrutiny.
• Stronger fairness in taxation and the use of mining revenues, including attention to local community impacts of mining projects.

8) What does the project aim to do on public debt transparency?

The project aims to improve public debt transparency by developing a standard approach for publishing national debt data and expanding what is made public about Malawi's debt situation. The opportunity explicitly includes debt tied to state-owned enterprises as part of the transparency improvements.

9) Why is state-owned enterprise (SOE) debt specifically mentioned?

The opportunity calls out SOE debt because debt transparency is meant to include obligations that may be tied to state-owned enterprises, which can be material to understanding the full public debt picture and to improving public and parliamentary oversight.

10) How is this grant expected to affect investment and investor confidence?

By improving the availability and quality of extractives-related information, the project is expected to support more informed decision-making by investors, reduce perceived investment risks, and build investor confidence.

11) How does transparency relate to competition and business practices in this opportunity?

The grant frames transparency as a tool to encourage fair competition among companies, reduce opportunities for backroom deals, and strengthen accountability across government and industry by making mining-sector data and debt data easier to access and use.

12) Who is expected to benefit from the increased transparency?

The opportunity highlights benefits for the public, oversight bodies, and investors. It also anticipates improvements in accountability that affect government and industry, and notes attention to local community impacts of mining projects as part of fairer use of mining revenues.

13) Who are the key partners or stakeholders anticipated for this project?

The opportunity anticipates working closely with a range of partners, including:

• Ministry of Finance
• Debt and Aid Management Division
• Ministry of Mining
• Other relevant ministries and agencies
• Malawi EITI
• Civil society coalitions such as the Tax Justice and Extractive Platform and the Natural Resources Justice Network
• Extractive companies
• Civil society organizations more broadly
• Journalists who can help translate complex financial and sector information for the public

14) What is the funding source for this grant?

The opportunity is funded through FY 2024 Economic Support Funds (ESF).

15) Is this a discretionary or entitlement-type award?

This is described as a discretionary award.

16) How many awards will be made?

The opportunity indicates an expected award count of one, and the grant will be issued as a single grant.

17) What is the maximum (ceiling) amount that can be awarded?

The award ceiling is USD 781,854.

18) How long can the project run?

The project period can run up to 24 months.

19) What is the funding opportunity number?

The funding opportunity number is DOS AF MWI FY24 01.

20) What is the program category and assistance listing information provided?

The opportunity is categorized under business and commerce and references CFDA 19.662.

21) Who is eligible to apply?

Applications are open to eligible organizations such as:

• Not-for-profit organizations (including think tanks and NGOs/CSOs)
• Public and private educational institutions
• Public international organizations
• Governmental institutions

22) Are individuals eligible to apply?

The submission requirements note that individuals are not required to have a UEI or SAM registration, but the eligibility list provided emphasizes nonprofit entities and other institutions. The opportunity information provided does not explicitly list individuals as eligible applicant types.

23) Is cost sharing or matching required?

No. Cost sharing is not required.

24) What registration requirements apply to applicant organizations?

Applicant organizations must have a Unique Entity Identifier (UEI) and an active SAM.gov registration (with additional details referenced in the NOFO's Section D.3).

25) Do applicants have limits on the number of proposals they can submit?

Yes. Each organization may submit only one proposal. If an organization submits more than one, all of its submissions will be ruled ineligible.

26) What is the application deadline?

The notice lists an original closing date of 2025-08-25.

27) What kinds of topics or activities should proposals likely address based on the stated goals?

Based on the stated focus areas, proposals are expected to align with improving access to mining licensing and contracting information, strengthening beneficial ownership monitoring, improving transparency around mining revenue collection and use, linking resource revenues to fiscal decisions and debt accumulation, and developing a standard approach for publishing national debt data (including SOE debt) to expand what is made public about Malawi's debt situation.

28) How does the opportunity connect mining revenues to debt and fiscal decisions?

The opportunity explicitly links mining revenue collection and the use of those revenues to government borrowing, describing an interest in how natural resource income affects fiscal decisions and debt accumulation.

29) What role do journalists play in the project according to the opportunity?

Journalists are identified as partners who can help translate complex financial and sector information for the public, supporting broader understanding and oversight.

30) What is the underlying theory of change described by the opportunity?

The opportunity is built on the idea that better visibility into mining decisions, ownership, revenue use, and debt obligations reduces corruption risks, strengthens oversight, improves fiscal discipline, and supports a more predictable environment for responsible investment.