SPS's hope for macroeconomic stability

This follows a launch of World Bank’s 19^th edition of the Malawi Economic Monitor (MEM) recently in Lilongwe, under the theme ‘Reforming with urgency: Malawi’s path to economic stability.’

Presenting on a special topic of the MEM edition, titled ‘Investing in adaptive safety nets,’ World Bank’s Social Protection Specialist and co author of the report, Chipo Msowoya said there was rigorous evidence that Social Cash Transfer Programme (SCTP) in the country has shifted from consumption to investment among the beneficiaries.

“SCTP has grown to become an investment by moving the needle around ownership of livestock and other small assets and allowing poor and vulnerable households to start investing in education, access to health for their households creating a path way that puts the future generation on a different trajectory compared to that of their parents,” he elaborated.

Msowoya from the report highlighted further on how the system has debunked the generalized idea that social protection systems create a dependency syndrome among its beneficiaries.

He said that the system has created a demand in digital services through E-payment that has enabled government to create financial inclusion among the beneficiaries.

“Government has transitioned from disbursing cash physically to electronic payments for both social cash transfer and public works wages through mobile money platforms and other traditional banking innovations which have prevented cases of fraud, speeded up the payments and allowed people that were excluded to become part of the financial sector,

Currently as it stands Malawi scaled up to delivering its social protection benefits across 10 districts allowing 440 households to use digital payments,” he said

He mentioned that the country has been one of the trail blazers in the world in bridging the nexus between Social Protection and disaster risk financing by leveraging on insurance systems to respond to common risks that the country faces especially drought.

World Bank’s Country Director for Malawi, Tanzania, Zambia and Zimbabwe, Nathan Belete commended government and partners on the achievements made through social protection system.

“Social protection and adaptive safety nets not only provide an immediate response for the poor and vulnerable but it stimulates the economy more broadly as well as support the vulnerable households,

We wish for the progress to continue to be strengthened, improved and that government extends the coverage of the programme to more people that deserve and need to be part of the programme,” he said.

Minister of Gender, Community Development and Social Welfare, Jean Sendeza said Social Cash Transfer was the way to go for the country to recover from its economic crises.

“In as much as the country is making progress with this programme there is still need for government to work together with its partners to effectively help the vulnerable communities,” she noted.

Malawi Economic Monitor provides a semi-annual analysis of Malawi’s economic and structural development issues.