The United Nations Development Programme (UNDP) has described environmental damage in Malawi as alarming, with the country losing about 32,000 hectares of forest every year.

UNDP Programme Coordinator for Inclusive and Green Business, Cinzia Tecce, revealed that Malawi currently ranks second in Africa among nations with the highest rate of deforestation.

She made the remarks in Lilongwe on Wednesday during the launch of Window 2 Round 3 of the Green Economic Transition Facility (GETF), which provides financial support to private sector companies implementing environmental conservation projects.

“Malawi is losing 5.6 percent of its GDP due to environmental damage. When I talk about environmental damage, I am referring to preventable deforestation. For example, Malawi loses 32,000 hectares of forest every year and is the second country in Africa,” said Tecce.

She explained that UNDP is implementing activities under GETF to provide financial support for private companies that promote green business solutions. The facility, launched in April 2023, offers technical support and matching grants to companies.

“We are trying to give incentives to the private sector to bring forward solutions that address environmental challenges such as deforestation, biodiversity loss, access to electricity, and soil erosion,” Tecce added.

GETF Project Manager, Tambulani Chunga, outlined the process for private companies to benefit from the initiative.

“We will be engaging the private sector to put forward ideas that are sound enough to be shortlisted. Those selected will then develop full proposals to be presented to the green investment committee,” he said.

Chunga disclosed that there are currently 22 projects across the country from the four previous rounds of GETF, at various stages of implementation. Some are expected to be completed by June 2026.

One of the beneficiaries, Berious Unyolo, Managing Director of Mundawathu Company which produces organic fertilizer in Lilongwe, shared his experience.

“We managed to secure USD 250,000 (about K450 million). So far, we have procured warehouse materials and some machines,” he said.

Funding for Window 2 Round 3 of the GETF is being provided by the German Development Cooperation through KfW Development Bank.