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Field Before After
Trial End Date October 31, 2026 November 30, 2026
Last Published October 08, 2024 02:55 AM December 05, 2024 03:47 AM
Intervention (Public) The capital injection intervention is a component of a broader USAID Growth Poles initiative focused on specific anchor firms. These firms are expected to serve as catalysts for economic development, aiming to mobilize investments and result in positive impacts for nearby communities. The VSLA capital injections are intended to help households in nearby communities to tap into the new economic opportunities created by the Growth Pole initiative. In total, there are more than 15 growth poles (anchor firms) in which USAID investments take place. The capital injections that are part of this trial take place in communities that are in the vicinity of three growth poles: Llovo Dwangwa in Nkhotakota district located in the Central region of Malawi; Tropha in Rumphi and Mzimba districts in Northern region; and Pyxus in Dowa and Kasungu districts in the Central region. The VSLA capital injection intervention is implemented by Women's Legal Resources Centre (WOLREC), a Malawi-based NGO, in collaboration with Palladium International, a global consulting firm with an operational presence in Malawi. The intervention grants a sum of $70 PPP per member in the VSLA group to expand their loan sizes. To qualify for the capital injection, VSLAs must adhere to specific criteria, including a 4-month loan term and an interest rate of at most 10 percent (equivalent to approximately 33 percent on an annualized basis). This capital injection program complements the regular VSLA group loans, which the groups will continue to provide under their original terms, typically characterized by higher annualized interest rates than what is offered through the capital injection scheme. Additionally, the groups will be equipped with local bank accounts to enhance security and establish a connection to formal financial services. To further support the initiative, participants will receive training in financial literacy, as well as in business and VSLA management. The capital injections and trainings will be rolled out between November and December 2024, i.e., immediately after the baseline survey. The capital injection model intervention is a component of a broader USAID Growth Poles initiative focused on specific anchor firms. These firms are expected to serve as catalysts for economic development, aiming to mobilize investments and result in positive impacts for nearby communities. The VSLA capital injections are intended to help households in nearby communities to tap into the new economic opportunities created by the Growth Pole initiative. In total, there are more than 15 growth poles (or anchor firms) in which USAID investments take place. The capital injections that are part of this trial take place in communities that are in the vicinity of four growth poles: Ilovo Dwangwa in Nkhotakota district located in the Central region of Malawi; Tropha in Rumphi and Mzimba districts in Northern region; and Pyxus in Dowa and Kasungu districts in the Central region; and African Parks in Nkhotakota district. The VSLA capital injection intervention is implemented by Women's Legal Resources Centre (WOLREC), a Malawi-based NGO, in collaboration with Palladium International, a global consulting firm with an operational presence in Malawi. The intervention grants a sum of $79 PPP per member in the VSLA group to expand their loan sizes. To qualify for the capital injection, VSLAs must adhere to specific criteria, including a 4-month loan term and an interest rate of at most 10 percent (equivalent to approximately 33 percent on an annualized basis). This capital injection program complements the regular VSLA group loans, which the groups will continue to provide under their original terms, typically characterized by higher annualized interest rates than what is offered through the capital injection scheme. In addition, the groups will be equipped with local bank accounts to enhance security and establish a connection to formal financial services. Moreover, VSLA members will receive training in financial literacy, as well as in business and VSLA management. The training package also includes Gender Action Learning Systems (GALS) trainings that aim to empower women to contribute to planning and decision-making within their households. The capital injections and training will be rolled out between December 2024, i.e., shortly after the baseline survey.
Intervention Start Date November 01, 2024 December 15, 2024
Planned Number of Clusters 150 150 GVHs
Power calculation: Minimum Detectable Effect Size for Main Outcomes See Table 2 in the pre-analysis plan.
Public analysis plan No Yes
Pi as first author No Yes
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Analysis Plans

Field Before After
Document
Hirvonen_et_al_MWI_capital_injection_RCT_pre-analysis_plan_5_december_2024.pdf
MD5: 4bc8056ac88baa4ddad259ea111d1e9f
SHA1: b04429e4cb46e4aed9fb4f5354d4c54270920490
Title Pre-analysis plan: Revitalizing rural Malawi: Experimental evaluation of the economic impacts of capital injections to village savings and loans associations
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