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.
Since 2013, the European Union has contributed significantly to the SCTP and closely related projects in Malawi. Under the SCTP, the EU is supporting seven districts with 65,000 beneficiary households (approx 264,000 people). The districts include 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) and scaling up to support a further eight districts. 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.
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.