PSEUCT empowering urban poor

Born in Chesomba Village in the area of Traditional Authority (TA) Chalazi in Mangochi district, Hawa has six children whom she failed to educate after her husband died seven years ago, leaving her in dare poverty.

Misfortunes overshadowed her happiness as all responsibilities fell on her shoulders.

Constantly worried about feeding her children, she started a small-scale business at Kawale Market in Lilongwe with the little money she had.

The profit from selling sugarcane and fruits helped her buy maize flour and relish for the day.

However, her business struggles intensified when the country’s currency was devalued in 2023, leaving her unable to find the remaining capital for her business.

She was lost until the Price Shock Emergency Urban Cash Transfer (PSEUCT) came to her rescue, enrolling her as a beneficiary.

With a chuckling face, Hawa disclosed that she received a message in her Airtel wallet, finding K150,000 in her account.

It was an incredible moment for her and immediately bought maize and reinvested the remaining amount in her business.

“I was hopeless about my future as prices of goods grew high. I was struggling to earn a living and continue my business, but the program has given me the opportunity to boost my business and alleviate the economic challenges I was facing,” she explained joyfully.

A businessman from Dambo Village in the area of Traditional Authority (TA) Kaphuka in Dedza district, Chipiliro Kamwaza, 51 is another happy beneficiary of the PSEUCT programme.

He faced numerous challenges paying school fees for his children and often borrowed money from colleagues to make ends meet.

The devaluation of the currency further strained his financial situation until he was registered with the PSEUCT programme.

He hailed the government for including him in the programme, which he believes would help his business grow and make his family happy.

“I am happy with the government’s decision to register me in this program. I was fearful with the rise in maize prices, but now I can buy maize in installments,” Kamwaza said.

The money has supported his family in buying basic needs, which he struggled to achieve without the programme.

“I have started using this money to buy necessities for my home. Some has been invested in my business to bolster it,” Kamwaza added.

A farmer from Area 25 in TA Chitukula in Lilongwe, John Judge, 42 expressed his satisfaction with the programme saying it was a relief after an uncertain growing season due to the El Nino weather condition.

The Previous season's poor harvest left him hopeless about sourcing basic needs for his five children and wife, and he was also struggling to buy farm inputs.

He believes the programme was a significant opportunity to improve his family's livelihood and economic standards.

According to a Press Statement dated June 20, 2024, signed by the Secretary for Economic Planning and Economic Affairs in the Ministry of Finance and Economic Affairs, the PSEUCT programme targets ultra-poor households within city wards.

The payment process is conducted in three phases to ensure smooth and efficient fund distribution. Phase one involved distributing funds to 22,339 eligible beneficiaries.

The Statement said Phase two, focused on transferring funds to an additional 16,328 beneficiaries undergoing the Know Your Customer verification and phase three addresses grievances and unresolved issues.

It indicated that PSEUCT is an unconditional cash transfer programme providing a critical safety net for the most marginalized urban population, supporting their consumption needs.

Spokesperson for the Ministry of Gender, Community Development and Social Welfare, Pauline Kaude said PSEUCT programme aims to alleviate immediate economic hardships caused by the devaluation of the local currency.

“The objectives of the programme are to alleviate the immediate economic crisis people face due to the socio-economic impact of the devaluation of the local currency, support the urban poor in meeting their basic food consumption and nutritional needs.

This include to strengthen the resilience of the urban poor by providing financial resources that protect them from engaging in negative coping mechanisms, and boost the local economy by injecting funds to stimulate demand and supply of locally desired goods and services,” she explained.

Kaude said the programme targets 105,000 beneficiary households in Lilongwe, Blantyre, and Mzuzu cities.

The Programme is implemented with support from the World Bank Group and United Nations Children Fund (UNICEF) managed by City Councils with support from the Ministry of Finance and Economic Affairs, Ministry of Gender, Community Development and Social Welfare, National Local Government Finance Committee (NLGFC), and Department of Disaster Management Affairs (DoDMA).

The total investment in the programme is K17.1 billion (US$9.5 million).