Unicef warns: Rising prices make cash transfers less effective
Unicef Malawi has raised concerns that rising inflation is reducing the value of cash transfers provided under the Social Cash Transfer Programme (SCTP), locally known as Mtukula Pakhomo. The monthly stipend of K14,900 is struggling to meet basic needs as prices of goods and services continue to climb, making life harder for vulnerable families.
The SCTP supports the poorest 10% of Malawians, aiming to reduce poverty and improve access to education and health services. However, a report by Unicef highlights that inflation is eroding the power of these cash transfers. Beneficiaries, like Blantyre resident and single mother of three, Annette Banda, say the money is no longer enough to cover basic necessities.
Unicef estimates the cost of running the SCTP will rise significantly from K30 billion in 2022/23 to K150 billion by 2026/27, as the government plans to expand coverage. However, funding remains heavily dependent on donors, who are expected to cover 96% of the SCTP budget in 2024/25, compared to just 3.5% from the government.
Unicef is urging the Malawian government to increase its contribution to 15% of the programme’s budget by 2027 to ensure sustainability and national ownership of this crucial safety net.
The SCTP aligns with the country’s long-term development plan, Malawi 2063, which aims to make Malawi self-reliant and wealthy. However, without stronger government investment and strategies to address inflation, the programme’s ability to lift families out of poverty will remain under threat.
For now, Unicef is calling for urgent action to protect the poorest Malawians from the harsh impact of rising prices.
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