Using Evidence to Inform Program Reform in the Malawi Social Cash Transfer Program

1. Using Evidence to Inform Program
Reform in the Malawi Social Cash
Transfer Program
Nairobi , Kenya
June 2023

2. The Malawi Social Cash Transfer Program
has been in existence since 2006
• Poverty reduction
• Improve health condition of beneficiaries
• Improve school enrollment for children belonging to
beneficiary households
3 main objectives

3. Target:
ultra-poor and labour constrained households in all rural districts of the country.
The Malawi National Social Support Program (MNSSP II) explicitly recognizes
social, demographic and life-cycle vulnerabilities in the population, and uses these
vulnerabilities to develop a framework for action

4. The Malawi SCTP indirectly reaches many individuals who display social,
demographic and life-cycle vulnerability as identified in the MNSSP II. These
include the elderly, the specially-abled, and female headed households.
However, none of these are explicit eligibility criteria of the program.

5. Age and sex composition of SCTP households versus IHS4 Rural Ultra-Poor
SCT Households Malawi rural ultra poor
Malawi poverty context

6. From the figure above.
SCTP households (left hand panel) have more females, more elderly
more adolescents while the generally rural ultra poor (right-hand panel) fewer
prime-age adults.
On the other hand, an important vulnerable group as identified in the MNSSP,
children under age 5 years, are neither indirectly nor directly reached through
the SCTP. Among the rural ultra-poor 16 percent of household members are
children under age 5, compared to just 8 percent among SCTP households.

7. Impact studies
A summary of the main impacts and related policy implications generated by
Malawi’s Social Cash Transfer Program between 2013-2015, include positive
impacts on poverty, income multipliers, food security, productivity, education and
health.
Two recent studies however, which were conducted in 2020 suggest that the
program could be more impactful if the it went further in addressing school
retention and lifecycle vulnerabilities.

8. Policy options to address lifecycle vulnerabilities of
beneficiaries in the Malawi Social Cash Transfer
Program
Objective: Provide policy options on how the SCTP can
strengthen its approach to addressing lifecycle
vulnerabilities as mandated by the MNSSP II.

9. The typical SCTP recipient is elderly, with a chronic health condition or
physical disability.
Children under five years in SCTP households are typically not the child of
the main recipient, and so do not receive direct support from the program.
Caregivers of children under age 5 in SCTP households are young mothers
who have dropped out of school and lack financial or emotional support
SCTP households with specific vulnerabilities have significantly lower food and
total consumption relative to other SCTP households
Key findings

10. The key conclusion of the empirical analysis is
that not all SCTP households are the same, and
the program is significantly less protective for
households with specific vulnerabilities.

11. Key strategic decision
Maintain the SCTP as a narrowly targeted, small program aiming to reach
about 10 percent of the population, or
transition to a broad-based social protection program that addresses
lifecycle vulnerabilities as envisioned in the MNSSP II, and become the
center piece of social protection in Malawi

12. Policy options
Directly target lifecycle vulnerability – categorical targeting
Support specific vulnerabilities within the current targeting approach
Nutrition bonus for children age 5 years and under
Support to mother-child sub-families within SCTP households

13. Categorical Targeting Pilot
Operational research
Efficiency, acceptability
and feasibility of the using
the categorical approach
over the current Labour
constraints approach

14. Malawi has set out to
explore a new SCTP
Targeting approach, along
Categorical lines.
Working hypothesis : Simple
categorical identification by
communities, followed by a
simplified Proxy Means Test to
exclude the non-poor.

15. People
with severe
disabilities
Child-
headed
households
Children
aged 3 and
below
The elderly
aged 65
and above
Chronically
ill
Key categories to be tested
Ultra poor households with a member/s in the following categories

16. Policy shift issue
The majority of the under-five children
belong to the young and productive
population which has labor capacity. They
can be targeted in other programs.

17. Thank You!