Rural households laud economic transformation

Thirty-six -year-old Lilian Lungu from Traditional Authority (T/A) Mpherembe in Mzimba is one of the beneficiaries of the Malawi Government’s safety net initiative, the Climate-Smart Enhanced Public Works Programme which has resulted in a remarkable transformation in her livelihood.

This initiative engages in land and water conservation activities, giving beneficiaries K28 800 after 24 days of labour.

However, with support from Community Savings and Investment Promotion (Comsip) Cooperative Union Limited, the beneficiaries formed a savings and loans group where they lend one another money to start business.

“I started by borrowing K24 000 and ventured into buying and selling bonya. I reinvested the profit that I made, paid back the loan and then borrowed K60 000, thereafter K100 000. My business has grown and I am now investing some of my profits in soy beans farming,” narrates Lungu, who is the Chankhalamu Comsip group secretary.

From Inkosi Mzukuzuku’s area in Mzimba, Greenlight Comsip chairperson Deliwe Mvula said Comsip introduced them to a saving book categorising purposeful saving, mandatory, shares and emergency funds.

The group, which falls under Chiputa cluster, started in March this year and has accumulated an estimated K3.5 million in  income.

Reflecting on her journey, Mvula says: “Previously, I was living a day as it comes, lacking vision and a plan for the future. But now, I set goals and as each year commences, I strive towards a specific purpose.”

A farmer and vegetable seller, she currently has over K300 000 in savings. She plans to acquire a Toyota Sienta in two years which operate as a taxi to augment her income.

Fanizo Ng’oma, a member of Greenlight Comsip group, who is a skilled carpenter, discloses their weekly contribution of K5 000, adding that the members have used some of their savings to procure farm inputs such as seeds and fertiliser.

Wongani Jere, Comsip caseworker responsible for Chiputa cluster under Inkosi Mzukuzuku, Thundwe cluster under Inkosi Mzikubola and Waluwa cluster which falls under Inkosi Kampingo Sibande in Mzimba, says there are 910 members across the three catchment areas.

These groups, supported by Comsip Cooperative Union Limited, exhibit impressive progress, amassing around K38 million in total savings.

“The clusters have ventured into diverse enterprises, including community bakery, soap manufacturing and livestock production. They own commercial plots earmarked for office construction,” he boasts.

In addition, the groups in the catchment area are engaged in agricultural production, including banana, onion and Irish potato farming.

Inkosi Mzukuzuku lauds the savings and loan groups’ initiative, emphasising its pivotal role in ensuring food security and reducing poverty at the household level.

“I can attest to the success of this initiative, looking at how lives of members in my area have transformed,” he says.

Chitipa District community development officer Haddy Mulenga underscores the impact of the Climate-Smart Enhanced Public Works Programme, with approximately 11 000 beneficiaries receiving training in business management, financial literacy and nutrition.

He says: “The purposive saving has enabled beneficiaries who are not on the Affordable Income Programme (AIP) list to afford farm inputs such as fertilisers and improve their livelihoods.

“This programme is not only trying to help them out of poverty, but also solve some of the gaps the communities face, such as climate change.”

Both Lusekero cluster facilitator Matilda Singogo and Kamugudule cluster member Alex Mulenga boast about how Comsip has changed the mindset of the beneficiaries who previously never thought of venturing into small-scale businesses or commercial agriculture.

Comsip, through the Climate Smart Enhanced Public Works Programme,  a sub-component of the Social Support for Resilient Livelihoods Project, encourages members in savings and loan groups to enhance their economic capacity through savings and investment.

Currently, about 471 000 members of savings and loan groups are benefitting from the programme  nationwide.

According to Comsip development communication officer Mercy Kayuni, the savings and loans groups under the Comsip Cooperative Union Limited have collectively raised over K5 billion in savings, signalling hope for more families to escape poverty.

“The performance has been good. We have seen the growth of savings and investment among the groups. These are people that lived below the poverty line and government and donors saw it fit to support them. So, for them to be mobilising such amount of money, it is an indication that the project has been a success so far,” she says.

Under the programme, Comsip has 292 186 participants in 12 819 savings and loan groups, with cumulative savings hitting over K3 billion.

About 59 242 people in the social cash transfer had formed 3 323 loan groups in 14 districts as of September this year.

Cumulative savings from groups under social cash transfer from 2020 have reached about K2.1 billion. On the other hand, the average savings per beneficiary in all the projects is at K35 456.29

The seven-year project, which started in 2020 and ends in 2027 is funded by multi-dollar partners and the government of Malawi to the tune of K48 billion.

It targets 590 000 beneficiaries in two components, with 64 000 under the social cash transfer and 471 000 under the Climate Smart Enhanced Public-Works Programme.

Kayuni expresses confidence in the project’s sustainability, citing collaboration with existing structures and local human resources as key factors.