For years, Kate Justen from Bvumbwe, Thyolo, has been a beneficiary of the Social Cash Transfer Programme (SCTP) designed to lift ultra-poor households out of poverty—yet nothing has changed in her life.
“I have been a beneficiary for over four years now, but I am still struggling to make ends meet,” she said. “The amount is inadequate to make any meaningful impact.”
Beneficiaries of the programme receive varying amounts of money due to factors such as poverty levels and number of children in a homestead, among others, with the lowest amount being K8 701 per month—a figure set to go up by 71 percent following a revision of benefit levels compelled by rural inflation.
Those who qualify for the programme are labour-constrained and ultra-poor households, which include homesteads headed by poor women, children raising fellow children, the elderly and persons with disabilities.
Justen, 70, was enrolled in the programme as an elderly person who also takes care of a disabled child.
“When I was enrolled in the programme, I envisioned my life transforming for the better. I thought it would ease the burden of taking care of my disabled child who is a full-grown man,” she said.
Justen said despite receiving payouts all these years, she still fails to access basic services as the money goes towards buying foodstuffs which do not last a month.
She said she even failed to farm because she could not afford fertiliser, as: “I have been living from hand to mouth.”
Justen said she relies on well-wishers, including organisations that often go to the area to support elderly persons with different incentives.
Nation on Sunday sampled six districts of Thyolo, Chikwawa, Mwanza, Salima, Kasungu and Mzimba where three out of every five beneficiaries showed that they have not made any significant progress with the payouts.
For instance, Dice Madziabango from Nsanje said there is nothing to show for since he was enrolled in the programme four years ago.
Similarly, Adam Khuleya from Salima said he has struggled to educate his children because the monthly payouts are not enough while Maziko Manda from Chikwawa said he hardly saves due to the high cost of living.
However, the few that have made significant strides with the SCTP managed to join village savings and loans groups, bought cattle and goats, constructed decent houses and some are engaging in small-scale businesses whose earnings they use to support their daily livelihoods.
Ministry of Finance and Economic Affairs’ 2024 Annual Economic Report shows that in the preceding year, 323 900 households in all 28 districts received SCTP payouts totalling K39.6 billion.
Reads part of the report: “To improve SCTP service provision, government has completed re-targeting processes in 14 districts to increase coverage from 10 percent towards 15 percent.”
But in its current form, social protection experts have argued that the SCTP is not a sustainable long-term solution to Malawi’s poverty crisis on the basis that, among others, it does not tackle structural causes of poverty, low agricultural productivity, lack of decent jobs, poor infrastructure, underfunded education and weak health systems.
The experts argue that Malawi’s poverty is deep-rooted in systemic issues, including land fragmentation, population growth, weak industrial development and over-dependence on subsistence farming; hence, the SCTP alone without investments in job creation, agricultural commercialisation, education reform and healthcare delivery will not reverse these trends.
The programme is also marred with allegations of beneficiaries being connected to local authorities like traditional leaders and those that give a certain percentage to chiefs as a token of appreciation.
This is apart from traditional leaders allegedly ensuring that their relatives, who do not meet the criteria of being beneficiaries, are enrolled in the programme. This means the rightful households that ought to benefit from the programme continue being trapped in high levels of poverty.
Centre for Social Concern economic governance programmes officer Agnes Nyirongo said in an interview that despite some accomplishments, the programme faces limitations that threaten to undermine its transformative potential.
She said the payouts, though set to be adjusted, remain far too small to meet even basic survival needs.
“Many recipient households remain in deep poverty, struggling to afford three meals a day, access healthcare or invest in productive assets. Inflation has eroded the real value of the stipend and in larger families, the monthly amount is spread too thin to have meaningful impact.
“Moreover, while the programme has proven effective as a short-term safety net, it has not provided a clear pathway out of poverty. There is no structured graduation strategy to help recipients transition into economic self-reliance,” she said.
Nyirongo said households remain on the programme for years without access to training, livelihood support or employment linkages that could help them stand on their own. She argued that without these elements, the risk of long-term dependency remains high.
Further, Nyirongo said the programme also suffers from weak monitoring and feedback mechanisms. She said without real-time data collection, performance tracking and community engagement, the government lacks tools to dynamically adapt and improve implementation.
“This limits the ability to measure long-term success or respond quickly to gaps,” she said.
But despite the criticisms, the government insists that the programme should continue on the basis that it is alleviating poverty.
Minister of Gender, Community Development and Social Welfare Jean Sendeza said in an interview during the week that while some misuse the payouts, others have managed to turn their life around.
She said people have constructed decent houses, established businesses, bought dairy cows and goats, and joined village savings and loans groups with the payouts.
She said: “Some have been graduating from the programme having moved from the ultra-poor status and are able to support themselves. So, the programme should continue because it is effective and is helping the vulnerable and ultra-poor households.”
But Centre for Social Accountability and Transparency executive director Willy Kambwandira argued in a separate interview that the SCTP in its current design might not fully achieve its objectives, and it is no secret that it needs total redesign.
“The SCTP budget for the financial year 2024/25 will see donors covering 96 percent of the total budget; this is not sustainable and raises serious questions about national ownership of the programme,” he said.
Kambwandira also concurred with Nyirongo, stating that rising inflation has significantly reduced the purchasing power of the monthly cash transfers. He said the stipend is obviously insufficient to meet basic needs as prices of goods and services continue to adjust upwards, making life harder for vulnerable families.
The SCTP was pioneered in 2006 in Mchinji and Balaka districts. It gradually expanded to other districts over the years and is running in all the 28 districts and is supported by different donors, except for Thyolo which is fully supported by the Malawi Government.
