Savings and loans birth transformations

About 303 savings and loans groups (SLGs) formed under the social cash transfer programme (SCTP’s) cash-plus interventions have collectively saved over K103 million between January and September 2023, a development they say will transform their lives.

The groups’ members are from 10 Traditional Authorities (T/As) in the districts of Balaka and Ntcheu.

The funds, which will be shared among 6 700 SCTP beneficiaries within the groups in December 2023, will be used to boost their small-scale businesses, increase child-related expenses, improve household consumption and increase asset acquisition.

Most of these beneficiaries, drawn from SCTP ultra-poor and labour-constrained households in the two districts, have already started to improve their livelihoods by investing in livestock production, building better homes; running small-scale businesses, and sending children to school.

With financial support from the Embassy of Ireland and technical assistance from United Nations Children’s Fund (Unicef) in partnership with Find Your Feet (FYF), the 6 700 households have been drawn from 24 448 households that are benefiting from the government-led SCTP in the two neighbouring districts.

Speaking in an interview, Ntcheu District principal social welfare officer Gift Kambadya said most of them have constructed better houses while others are now breeding livestock, which helps them with income generation and nutrition.

On top of that, he cited that the Strengthening Resilience of Poor Households Project is assisting the beneficiaries to build resilience.

He said: “Most of the beneficiaries have joined SLGs so that by the end of the year, they should have an amount higher than what they receive through the SCTP.

“By the end of a certain period, they will have bigger savings to use for other things.”

On her part, FYF’s district coordinator for Balaka and Ntcheu districts, Mwaiwawo Nthara, agreed that the project, with a total budget of about $360 000 (about K405 million), will enhance the beneficiaries’ economic status, nutrition, and resilience even in times of periodic shocks such as dry spells and drought.

“Despite improvements in food consumption and income generation, vulnerable households lack a saving culture, business management skills, financial literacy, and access to micro-finance institutions,” she noted.

Alice John, the secretary for the 21-member Titukulane SLG in Balaka, which saves a maximum of K1 000 per week, attested that they have raised about K1.1 million by September this year—a rise from the K400 000 mobilised the year before, owing to increased share contributions and their business investment.

She said: “We invested in a business selling torches.

“We buy and sell torches as a group, from which we earn a profit of K8 000 per torch.”

On top of that, she said every group member has a small-scale business just to ensure that they all have something to contribute in shares at every meeting and be able to repay their loans.

Unicef social protection specialist George Juwawo stated that the impact evaluation of the SCTP showed high impacts on several livelihood outcomes, including food security, asset accumulation, and school attendance.

However, he admitted that limited impacts were noted on child health, nutrition, and savings.

Grant Kansinjiro, the deputy director of social welfare responsible for social cash transfers in the Ministry of Gender, Community Development, and Social Welfare, corroborated that the programme is contributing to reduced poverty in the country.

“The programme is leveraged to respond to shocks such as cyclones and lean seasons when there is a food shortage. Other non-programme beneficiaries are also reached with support during such times,” he said.

Nonetheless, Balaka District social welfare officer Mphatso Chisepa regretted the irregular payments to the beneficiaries which she cited among the other challenges faced under the SCTP.

Currently, touching on the lives of 1.4 million household members, the SCTP is supported by the World Bank, the European Union (EU), the Government of Ireland, the German Government through KfW, and the Malawi Government.

Unicef and other partners are supporting the Government in operationalising the SCTP’s cash-plus agenda to amplify the programme’s impacts and protect development gains.