Malawi, German sign K17.1bn financial agreement for Social Cash Transfer Programme

The Malawi Government and the Republic of Germany have signed a financial agreement for social protection of the ultra poor IV Social Cash Transfer Programme at the Ministry of Finance in Lilongwe.

Minister of Gender Jean Kalirani exchange documents with German officials as Minister of Finance Gondwe sits to watch

Speaking after signing the agreement, Minister of Finance, Economic Planning and Development, Goodall Gondwe, said the K17.1 billion financial agreement would make available resources for the implementation of various activities through the social cash transfer programme.

“The purpose of the social cash transfer programme is to reduce poverty and improve the living conditions of the ultra-poor as well as labour constrained households, by among other things, providing them with minimum cash to meet their basic needs,” said Gondwe.

Gondwe expressed hope that the German Government would continue providing support to Malawi in its efforts to improve living standards of people through the Social Cash Transfer Programme.

The Social Cash Transfer Programme is implemented in Mchinji, Machinga, Mangochi, Salima, Likoma, Chitipa and Phalombe among other districts.

The minister said the financial contribution by the German Government towards the Social Cash Transfer Programme will go a long way to reduce poverty levels in the country.

He said according to the 2010 Integrated Household Survey (HIS), about 50.7 per cent of Malawians live below the poverty line with an estimated K919.00 earned per day.

The finance minister, therefore, commended the German Government for rendering support to Malawi towards the implementation of various development projects aimed at poverty alleviation. He also appealed to Malawians to work hard in order to become self reliant.

Deputy Head of Mission for the German Embassy to Malawi, Thomas Staiger, said provision of social security to people is the basis for sustainable economic growth and a successful fight against poverty.

Staiger commended the Malawi Government for its efforts in the coordination and integration of various social support programmes through the new Malawi National Social Support Programme II which he said is in the final stage.

The German Government has been supporting ultra poor people in Malawi since 2014 when the two governments signed an agreement for the first phase of the Social Cash Transfer Programme which was on pilot phase at that time.

Apart from proving support towards the Social Cash Transfer Programme, Germany has also been providing support in Education, Health, Social protection, Public Financial and Economic Development, Good governance and private sector development.

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How is that not going to end up in someone’s pocket?


This is a fair question. The Germans will, no doubt, keep a keen interest in the matter.



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