SOCIAL CASH TRANSFER
PROGRAM
EU Call for Proposals for Alternative Delivery
Mechanisms Information Session, 30th March, 2011
Background

April 2006: Participatory process of designing and testing a cash
transfer program begun

Sept 2006: Launch of SCTP pilot scheme in 4 Traditional
Authorities in Mchinji District with UNICEF funding

Nov 2006: Cabinet endorses Mchinji pilot and instructs for
extension to six additional districts of Chitipa, Likoma, Salima,
Machinga, Phalombe and Mangochi.

Jan 2007: USD 9 million allocated from Global Fund for AIDS,
Tuberculosis and Malaria (GFATM) through the National AIDS
Commission (NAC) to finance the pilot phase

Feb 2007: A National Social Cash Transfer Secretariat is
established in the Ministry of Gender Children and Community
Development
Objectives of the Program

To contribute to national efforts to reduce poverty and
hunger among ultra poor and labor constrained
households.

To increase school enrolment and attendance of
children living in target group households

To improve health, nutrition, protection and well-being
of vulnerable children in target group households.
Target

Ultra poor: households that have few or no assets, little
or no land, limited or no labour

Labour constrained: no able bodied household member
in the age group 19-64 who is fit for work (are chronically
ill and/or are child/female/elderly headed); or households
with a dependency ratio of more than 3
At full scale (national coverage) program estimated to
reach 300,000 households
Targeting

SCTP uses Community Targeting

Targeting is conducted by Community Social Support
Committees (CSSC’s): comprise of literate community
members elected by the community

Lists of the targeted households are presented at a
Community meeting for approval / disapproval

A final list of targeted households is presented to the
District Social Support Committee for final checking and
approval / disapproval
Targeting Inclusiveness
The SCTP targeted households comprise of the following
groups of people:
 Elderly
 Orphaned and vulnerable children
 Female-headed households (with more than 3
children)
 Child-headed households
 Chronically ill and or HIV-infected persons
 Disabled members
Payment Modalities

Payments are made at village-cluster pay-points mapped
out by the District Assembly (DA)

Payments are made every month except for Likoma
where payments are bi-monthly

Payments are made by DA accountants who are
accompanied by policemen for security
This mode of payments is labour intensive and partners are
currently exploring options of using Electronic payment
systems for cash delivery
Transfer Levels
Household
Amount (US$)
Amount (MK)
1 person
$4
MK 600
2 person
$7
MK1,000
3 person
$10
MK1,400
4 + person
$13
MK1,800
Child Education Bonus
Categories
Amount (US$) / child
Amount (MK) / child
Enrolled Primary School
Children
$1.3
MK200
Enrolled Secondary
School Children
$2.6
MK400
Flow Chart of Targeting, Approval
& Payment Process
1
Community sensitization
meeting:
2
Community ranking
meeting (household list
discussed and
approved by
community)
7
Listing of households
based on Form 1
6
5
Village Headman
signs Form 1 to verify
information is correct
8
SCT Secretariat
approves / disapproves
beneficiaries
3
Collection of
household data with
Form 1
Selection of Community
Social Support
Committee (CSSC)
4
CSSC Training;
Extension Workers
verify households
selected
9
SCT Secretariat
informs community
on final list
Beneficiaries access
monthly transfer
payments at a pay point
Coverage
District
Mchinji
Likoma
Machinga
Salima
Mangochi
Chitipa
Phalombe
Total
Beneficiary
Households
10761
196
4246
2686
4859
4208
3496
30452
Elderly headed
5543
132
2477
1035
3153
2187
2631
17158
Female
headed
5911
142
3132
1487
3670
1956
2748
19046
Child headed
109
1
65
20
61
12
156
424
Individual
Beneficiaries
35182
773
18452
7792
20260
10672
13146
106207
Children
21861
291
12975
4614
14494
6015
8075
68425
Orphans
20049
369
8831
3896
10263
4323
5884
53615
Elders
6934
162
3047
1513
3435
2479
2883
20453
Disabled
929
52
268
133
336
296
270
2284
Coverage Map
CHITIPA (4,208 hhs)
LIKOMA (196hhs)
SALIMA (2,686 hhs)
MCHINJI (10,761 hhs)
MANGOCHI (4,859 hhs)
MACHINGA (4,246 hhs)
PHALOMBE (3,496 hhs)
Funding

Government of Malawi (Human resources and transfers
amounting to MK50million in the 2010/2011 fiscal year)

UNICEF (Technical and Financial assistance for design of
SCT pilot and for SCT program and Secretariat)

The Global Fund(WB,DFID,CIDA,NORAD) (US$ 9 million for
the pilot in all 7 districts till 2011).

Irish Aid (Funds for transfers amounting to Euro850,000:
2010/2011)

German Government (Funds for program amounting to
13 million Euros: 2011-2013)
Impact (Boston University Evaluation Report)

Improved health and nutrition: over 80% of HHs reported
intensified food diversity with meat and fish and 45% use of
dairy products

Education: increased school enrollment from 87% - 95%,
retention, improved performance; decrease in stigma

Food Security: 90% of HHs purchased livestock - ownership
of livestock increased by 7 times

Economic multiplier effect: cash received by beneficiaries
is used in the local community

Improved housing and living conditions
Challenges to be Addressed
by E-Payment System

Capacity: Manual payments demand the presence of a
number of officers from different departments at the DA,
including the hiring of policemen for security

Time factor:
a)
b)
Timely disbursement of funds
Implementation time

Fiduciary Risk: Manual payments demand millions of
kwacha to be withdrawn in cash and ferried by DA
accountants

Monitoring: Manual payments are limited in providing
accurate evidence of cash drawn / cash management (i.e.
saving)
Challenges to be Addressed
by E-Payment System

Communication: Manual payments demand a strong
communication network for informing beneficiaries of pay
day

Beneficiary freedom / choice: Manual payments demand
beneficiary presence on days set by the DA

Corruption: Manual payments can easily be manipulated

Distance of Travel: Current payment system does not
provide for multiple pay-points in one village cluster
Additional Benefits of an Electronic
Payment System

Dignity of Beneficiaries

Provide additional financial services to beneficiaries and
the surrounding community (especially in respect to mobile
banking)

Provide access to improved network coverage

Encourage saving culture