The World Bank has reported that poverty remains a pervasive and complex phenomenon in sub-Saharan Africa, despite economic growth and improvements in many dimensions of welfare. The report also shows that social safety nets are key in decreasing poverty, especially in Malawi and her surrounding nations, which can use the nets to ease the burden of poverty.
The report shows that the number of social safety nets programs has expanded greatly. In Malawi, The Malawi Social Cash Transfer (SCTP) also known as Mtukula Pakhomo is an unconditional transfer targeted to ultra-poor, labour-constrained households. The main objectives of the SCTP are to reduce poverty and hunger, and to increase school enrollment.
The program launched in 2006 in Mchinji and was expanded to an additional six districts in 2007, and by September 2017, the program was reaching over 777 000 beneficiaries in more than 174 500 households across 18 districts of the country, including approximately 430 000 child members. However figures from the World Bank have estimated that approximately over 500 000 households in Malawi are ultra-poor, 300 000 are ultra-poor due to the structure of the household with few or no able-bodied adult household members. These households have either no household member who is fit for productive work or have a high dependency ratio, as they are labour constrained.
The shift in social policy towards social safety nets reflects a progressive evolution in understanding the role that social safety nets can play in the fight against poverty and vulnerability. Evidence shows that these programs can contribute significantly and efficiently to reducing poverty, building resilience, and boosting opportunities among the poorest.