Malawi and Germany have signed a 19 million euros (about K35 billion) grant that will go towards the Social Cash Transfer Programme (SCTP) in seven targeted districts.
German Ambassador Ute König exchanged notes of the financing agreement with Minister of Finance and Economic Affairs Simplex Chithyola- Banda and Minister of Gender, Community Development and Social Welfare Jean Sendeza in Lilongwe yesterday.
The ambassador said Germany, as a longstanding partner on social protection, has renewed the agreement with additional financing.
“This funding is a testament to our enduring partnership with Malawi and our shared goal of fostering social equity and development,” said König.
On his part, Chithyola-Banda said the country is facing various challenges that are aggravating poverty.
“This additional funding will significantly bolster efforts to provide essential relief to the most vulnerable families in Malawi,” he said.
On her part, Sendeza said the new aspects of the programme include focus on gender equality to ensure that social development programmes are inclusive and equitable.
She said: “This funding will empower women and girls, providing them with the support they need to thrive.
“The Social Cash Transfer Programme, commonly known as Mtukula Pakhomo, provides critical support to vulnerable families in Malawi, enabling them to meet their basic needs and improve their quality of life.”
According to the minister, the programme’s success is a result of collaborative efforts of the Malawi and German governments, along with other development partners.
The social cash transfer is the country’s main social safety net programme that targets the 10 percent ultra-poor of the country’s population.
However, with increasing vulnerabilities in rural communities, Sendeza said the beneficiaries will now be increased to 15 percent of the population.
Germany has been supporting SCTP since 2009, reaching 92 000 households in the districts of Chitipa, Likoma, Mchinji, Salima, Machinga, Mangochi and Phalombe.
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