The SCTP is currently funded by four Development Partners (the German government through KfW, European Union, Irish Aid and the World Bank) and the Malawian Government.
The SCTP receives support, including technical assistance, from other partners including GIZ, UNICEF, NLGFC, ID Insight, CGA Technologies, Give Directly, ILO and WFP.
More information on national partners can be found below.
KFW is a German state-owned bank which has, for over ten years, participated and supported the implementation of the Social Cash Transfer Program (SCTP) in seven districts in Malawi. Under this project, this German contribution will be maintained in the seven districts for the delivery of cash transfers, to cover related investments and operational costs at national and district level, costs for management consultancy support as well as costs related to audit, monitoring and evaluation. KFW uses digital technology to ensure transparency and efficiency in the targeted disbursement of cash. KFW Development Bank is implementing the SCTP on behalf of the German Federal Ministry for Economic Cooperation and Development (BMZ) in 7 of Malawi’s 28 districts namely Chitipa, Likoma, Machinga, Mangochi, Mchinji, Phalombe and Salima, covering over 61,500 households, occupied by more than 580,000 individuals. Additionally, KFW plays a key role in financing the transfers by supporting the continual monitoring and improvement of the SCTP’s set-up, administration and execution.
2. European Union
Since 2013, the European Union (EU) has contributed significantly to the SCTP and closely related projects in Malawi. Under the SCTP, the EU is supporting seven districts with above 62,000 beneficiary households (approx 264,000 people). The districts the EU supports are: Zomba, Mzimba, Mwanza, Neno, Mulanje, Nsanje and Chikwawa. EU support is focused on the management and operations of the SCTP in these seven districts. The EU has played an important role in the SCTP in Malawi through ensuring full coverage by topping-up its contributions in 2014 to the seven existing districts (listed above). In addition to the cash transfers for beneficiary households, the EU also supports programme infrastructure improvements; strengthening of financial management in addition to monitoring and evaluation capacities of the SCTP.
3. Irish Aid
Irish Aid supports the national social protection agenda in Malawi with a strong focus in promoting the scale up of the SCTP and ensuring regularity, efficiency, transparency and predictability of monthly payments to beneficiaries. Irish Aid entered into a second phase of a 5-year mutually beneficial multi-annual agreement of the SCTP with the Malawi Government in 2016 and is supporting 2 districts of Balaka and Ntcheu with a total of over 24,500 households. It provides support in digitizing payment of social cash transfers to families living in extreme poverty.
4. The World Bank
The World Bank is one of the funders of the SCTP which has pivoted its social protection programming from cash-for-work or similar programmes, towards joining other partners in supporting the SCTP. It has played a vital role in the SCTP development process in Malawi by identifying the scope and objectives of future support and establishing the design, implementation, financing implications, and timeframe for moving forward. The World Bank is supporting 11 districts: Blantyre, Chiradzulu, Dowa, Dedza, Karonga, Kasungu, Lilongwe Rural, Nkhotakota, Ntchisi, Rumphi and Nkhatabay and around 131,500 households. The World Bank has been key in the SCTP since 2014 with their initial focus on public works programs which targets fit-for-work poor people.
5. Government of Malawi
The Government of Malawi approved the SCTP programme under the framework of the National Social Support Policy in July 2012. It is the project executing agency (PEA) through its Ministry of Gender, Community Development and Social Welfare with overall policy coordination on social protection by the Ministry of Finance, Economic Planning and Development. It is responsible for the day to day implementation of the project in close cooperation with the District Councils including administration, management, monitoring and coordination, and ensuring that the program activities are mainstreamed into the government's service delivery system. The Malawi Government is supporting one district of Thyolo under this project, reaching around 16,500 households. The PEA will closely cooperate with all other development partners involved in the SCTP and co-ordinate their contributions.
The Social Cash Transfer Program (SCTP) is one of the most important social protection interventions for UNICEF in Malawi. Since programme inception, UNICEF has played a key role to ensure that the implementation of the programme is effective, efficient and delivers the intended outcomes. UNICEF undertakes the following roles and responsibilities within the SCTP:
1. Improving the effectiveness of the SCTP through capacity building and evaluations. In this regard UNICEF provides financial support for consultancies to support the ministry develop their communication activities.
2. Provision of technical assistance in the design, implementation and monitoring of the programme.
3. Generating evidence and analysis to inform social protection policy formulation and programme design including during emergencies.
GIZ supports programme implementation through capacity building, support to coordination, management, and improved delivery of the SCTP . It also supports the Ministry of Finance and Economic Development in implementing the SCTP in a harmonised and effective way; this includes conceptual work in linking the various elements of the SCTP as well as improving the integration of the emergency response components. Finally, GIZ also supports the harmonisation of the operational procedures through the development of the harmonised electronic payment and grievances redress instruments, in addition to the common approach to identifying appropriate beneficiaries and recording them in a single database.
8. National Local Government Finance Committee (NLGFC)
The NLGFC are the SCTP policy-holders and therefore play a central role in financial management of the SCTP. Specifically, the NLGFC undertakes the following roles and responsibilities:
1. Supports and manages funding brought through it from the World Bank in collaboration with the Ministry .
2. Provides support in capacity building and with provision of materials such as laptops, office space or vehicles.
3. Has the mandate to distribute funding that is allocated to the Councils. Additionally, through its financial analysts, the NLGFC goes to the Councils to analyse and see how the Councils are utilising funds.
4. Development of the budget and monitoring the SCTP funds. The NLGFC plays a key role in assisting the Councils develop their budgets.
Information on ID Insight, CGA Technologies, Give Directly, ILO and WFP will be added shortly.