Ministry of Finance and Economic Affairs has conceded that increasing shocks are not eroding social protection programmes gains meant to cushion the ultra-poor form the scourge of poverty.
In its analysis of Social Support and Poverty Reduction Programmes, Treasury said the increasing number and intensity of the shocks also continue to threaten the programmes that are already in place to assist in building the resilience of the ultra-poor.
According to the ministry, the shocks include macro-economic instability, extreme weather phenomena such as severe drought exacerbated by the El Niño phenomenon, Cyclone Freddy, and Cyclone Chido.
Reads the analysis in part: “Poverty and vulnerability are widespread in Malawi with many people needing social protection and support to help them meet their basic needs and overcome their risk exposure.
“Social protection is thus important in alleviating poverty and promoting sustainable development.”
Among others, government is implementing the social cash transfer programme (SCTP), climate smart enhanced public works programme, savings and loan groups and microfinance, shock sensitive social protection and the school feeding programme.
In the 2024/25 financial year, for instance, under SCTP, also called Mtukula Pakhomo, which seeks to reduce poverty and hunger and increase school enrolment, Treasury is retargeting beneficiaries to reach an estimated 382 457 households while a revision of benefit levels was approved using the rural inflation which will result in a 71 percent increase in average transfer per household from K8 701 to K14 919 per month and a 100 percent increase in primary and secondary school bonuses from K1 000 to K2 000 and K2 000 to K4 000, respectively.
However, the average cost of living for an average family of six in urban and peri-urban areas continues to rise, increasing by 12.9 percent to K694 653 in January 2025 as prices for most basic necessities continue to rise.
Meanwhile, the number of people living below the international poverty line of $2.15 (about K3 800) per day in Malawi is more likely to increase as the economy battles climate and external shocks.
Already, the World Bank projects that the poverty projection based on gross domestic product per capita growth between 2019 and 2023 shows that the number of people living on less than $2.15 per day increased from 70.1 percent to 72 percent due to, among others, the recurrent climate shocks affecting the agricultural sector.
Scotland-based Malawian economist Velli Nyirongo observed that the solution to ending poverty lies in fostering wealth creation for all.
“Government policies must pivot towards fostering a conducive environment for export-oriented production, steering away from the limited scope of import substitution,” he said.
The Social Protection sector is guided by sectoral policies and programmes which are aligned to the Malawi 2063 as well as other relevant Social Protection international frameworks.
Currently, a successor policy dubbed the National Social Protection Policy is in its final stages of formulation following the expiry of its predecessor, the National Social Support Policy (2012/17).The Policy will be operationalised by the Malawi National Social Protection Strategy which is also in the final gestation phase
