Government Moves to Reduce Donor Dependence in Social Protection

By Brighton Tchongwe

Government says it will pursue new and sustainable financing mechanisms for social protection programmes to reduce the country’s dependence on donor funding.

Minister of Finance, Economic Planning and Decentralisation Joseph Mwanamvekha said this in Lilongwe on Friday during the launch of the Sustainable Financing Strategy for Social Protection in Malawi.

Mwanamvekha said although government has increased its contribution to the Social Cash Transfer Programme, with the state now directly financing five districts, the broader social protection budget remains predominantly donor-funded.

“Social protection should not be viewed merely as a cost, but as an investment in human capital, as the programmes help reduce poverty and inequality, improve nutrition and keep children in school,” said Mwanamvekha.

Mwanamvekha said the new strategy provides a range of domestic and external financing options while promoting fiscal discipline, debt sustainability and efficient public expenditure.

He has since called for collaboration among government, Parliament, civil society and development partners in implementing the strategy.

Mwanamvekha said the strategy will establish a systematic, predictable and sustainable financing approach capable of protecting social protection programmes from fiscal shocks.

“The strategy is expected to support Malawi’s goal of building a comprehensively funded social protection system in line with the Malawi 2063 development agenda,” explained Mwanamvekha.

Meanwhile, Minister of Gender, Children, Disability and Social Welfare Mary Navicha has called for increased domestic financing and innovative funding mechanisms to sustain social protection programmes in Malawi.

Navicha said the Social Cash Transfer Programme remains a critical intervention in addressing poverty and vulnerability, currently reaching about 350,000 labour-constrained households.

World Bank Country Manager for Malawi Abdu Muwonge said the bank remains committed to supporting social protection programmes.

Muwonge has, however, urged government to strengthen resilience to climate change and work towards macroeconomic stability to ensure the sustainability of social protection interventions.

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