Malawi

The project “Enhancing Financial Management and Fiscal Sustainability for Social Protection in Malawi” contributes to achieving the vision of the Malawi National Social Support Programme II (MNSSP II), which aims to ensure enhanced quality of life and improved resilience for all in the country. In addition, the project supports the generation of evidence regarding the current and potential alternative financing mechanisms for social protection.

In this context, the project carries out analytical studies aimed to review the government’s revenues and budgets, exploring different financing mechanisms that could be implemented. The set of recommendations to expand and diversify financing for social protection through innovative options will provide empirical evidence contributing to policy decisions on how to expand social protection coverage and domestic financing for both contributory and non-contributory social protection programmes.

The project activities, running from October 2020 to March 2022, contribute to ensuring Malawi’s social protection system is funded by sustainable and robust financing mechanisms, including in times of shock, demonstrating effective, scalable tools in response to crises in the future. The project is based on the following main components:

1- Exploration of potential domestic financing mechanisms for social protection in Malawi;

2- Information and evidence generation;

3- Capacity building for effective financing and financial management of social protection programmes.

Key results achieved in 2020-22

• The programme supported the generation of requisite information regarding the current and potential financing mechanisms to finance social protection in Malawi. The project continues to engage the government on potential strategies and means to increase domestic resources and diversify sources for social protection measures. 
• The project has generated evidence about the financing and coverage potentials and the necessary investments required to introduce a more comprehensive social insurance system in Malawi. The analytical studies’ results support the National Social Support Policy Review processes. The Government of Malawi is reviewing the current National Social Support Policy to broaden its scope to include social insurance schemes. 
• The project successfully supported the development of the Capacity-Building Package on Social Protection Financing and Financial Management through the TRANSFORM capacity building programme. The in-depth training package contributed to enhancing the knowledge and capacities of senior government officers on financial management and financing mechanisms for social protection.

Resources

TRANSFORM Training Package on social protection Financing and Financial Management

Events

• TRANFORM Financing and Financial Management Training for Senior Government Officials in Malawi,1–3 September 2021
• Training of Malawi Ministry of Labour Officials on Social Insurance Schemes (28 February–1 March 2022)
• Tripartite Engagement on Introduction of a Workers Compensation Fund in Malawi (4 March 2022)
• TRANSFORM Training on Financing and Financial Management for Senior District Officials (16–18 March 2022)

Project partners

The main counterparts for the project are the Ministry of Finance and Economic Affairs through the Division of Poverty Reduction and Social Protection (PRSP); and the Debt and Aid and Budget Departments and the Ministry of Labour. Other Ministries, including Ministry of Gender, Community Development and Social Welfare, and Ministry of Local Government and Rural Development will be actively engaged. Government agencies to be involved are the Reserve Bank of Malawi and the Malawi Revenue Authority.

The project promotes social dialogue by collaborating with the Employers Consultative Association of Malawi (ECAM) and the Malawi Congress of Trade Unions (MCTU). Donors and development partners supporting Social Protection in Malawi are also key to the implementation of the actions.

Contacts

Patience Matandiko, Social Protection Technical Officer, matandiko@ilo.org