Germany supports Malawi with €8 million


By Deogratias Mmana:

The German government has channeled €8 million (about K8 billion) into the reserves of the central bank for a social cash transfer programme, a move meant to help ease forex woes in the country.

German Ambassador to Malawi Ralph Timmermann said this when he signed a grant agreement with the Malawi government at Capitall Hill in Lilongwe.


The grant is for the sixth phase of the social cash transfer programme which has now been extended to 300,000 household beneficiaries since 2012 when Germany started helping the programme.

With the current grant, the cumulative German contribution towards the programme within the decade spanning 2012 to 2022 has reached €111 million (K120 billion).

“Germany will also assist in easing the present forex shortage in the country by channelling the funds from this new phase V1 directly through the central bank, a departure from the current arrangement of disbursing funds via commercial banks,” Timmermann said.


According to the ambassador, the grant will be used for the continued financing of regular payments to households living in extreme poverty and who are labour constrained and giving technical assistance to the Ministry of Gender, Community Development and Social Welfare to facilitate efficient implementation of the national social cash transfer programme.

The funds will also be used for continued support to the urban poor through extension of the urban cash intervention that Germany and other partners started during the Covid pandemic.

Timmermann asked the government to channel the funds to the rightful beneficiaries and not officials facilitating the process of channeling the funds.

The German contribution, provided within the framework of the SCTP 2, supports people living in extreme poverty in seven districts namely Chitipa, Likoma, Machinga, Mangochi, Mchinji, Salima and Phalombe.

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