Malawi's Social Protection Programs: A Lifeline Amidst Economic Shocks

Malawi's Ministry of Finance and Economic Affairs has acknowledged that the country's social protection programs are facing significant challenges due to increasing economic shocks. Despite these challenges, the programs have continued to provide a vital lifeline to the ultra-poor, helping to cushion them from the scourge of poverty.


The ministry's analysis of Social Support and Poverty Reduction Programmes reveals that the increasing number and intensity of shocks, including macro-economic instability, extreme weather phenomena, and climate-related disasters, threaten the progress made in reducing poverty. However, the government remains committed to implementing programs such as the Social Cash Transfer Programme (SCTP), Climate Smart Enhanced Public Works Programme, and Savings and Loan Groups, among others.


To address the rising cost of living, the Treasury has approved a 71% increase in the average transfer per household under the SCTP, from K8,701 to K14,919 per month. Additionally, primary and secondary school bonuses have been increased by 100%, from K1,000 to K2,000 and K2,000 to K4,000, respectively.



Despite these efforts, the average cost of living for a family of six in urban and peri-urban areas continues to rise, increasing by 12.9% to K694,653 in January 2025. The World Bank projects that the number of people living below the international poverty line of $2.15 per day may increase due to climate and external shocks.


To address poverty, Scotland-based Malawian economist Velli Nyirongo emphasizes the need for government policies to foster wealth creation for all. He advocates for policies that promote export-oriented production, steering away from import substitution.


Malawi's social protection programs are guided by sectoral policies and programs aligned to the Malawi 2063 vision and other relevant international frameworks. As the country continues to face economic challenges, it is essential to prioritize social protection programs to ensure that the ultra-poor are protected from the worst effects of poverty.

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