SOCIAL CASH TRANSFER PROGRAMEU 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
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.
Objectives of the Program
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 $13 MK1,800
Categories Amount (US$) / child
Amount (MK) / child
Enrolled Primary School Children
$1.3 MK200
Enrolled Secondary School Children
$2.6 MK400
Child Education Bonus
Beneficiaries access monthly transfer
payments at a pay point
Beneficiaries access monthly transfer
payments at a pay point
Listing of households based on Form 1
Listing of households based on Form 1
CSSC Training;
Collection of household data with Form 1
CSSC Training;
Collection of household data with Form 1
Community sensitization meeting:
Selection of Community Social Support Committee
(CSSC)
Community sensitization meeting:
Selection of Community Social Support Committee
(CSSC)
Village Headman signs Form 1 to verify
information is correct
Village Headman signs Form 1 to verify
information is correct
Community ranking meeting (household list discussed and approved
by community)
Community ranking meeting (household list discussed and approved
by community)
SCT Secretariat approves / disapproves
beneficiaries
SCT Secretariat approves / disapproves
beneficiaries
Extension Workers verify households
selected
Extension Workers verify households
selected
SCT Secretariat informs community on
final list
SCT Secretariat informs community on
final list
1 2 3
4 5
7 8 9
6
Flow Chart of Targeting, Approval & Payment Process
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
MCHINJI (10,761 hhs)
SALIMA (2,686 hhs)
MACHINGA (4,246 hhs)
PHALOMBE (3,496 hhs)
MANGOCHI (4,859 hhs)
CHITIPA (4,208 hhs)
LIKOMA (196hhs)
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)
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
Impact (Boston University Evaluation Report)
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) Timely disbursement of fundsb) 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
Challenges to be Addressed by E-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
Additional Benefits of an Electronic Payment System