The project “Enhancing Financial Management and Fiscal Sustainability for Social Protection in Malawi” supports the achievement of the vision of the Malawi National Social Support Programme II (MNSSP II), which aims at ensuring enhanced quality of life and improved resilience for all in the country. The actions will run from October 2020 to September 2021.
The initiative will contribute to ensuring the social protection system of Malawi 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 main following components:
- Exploration of potential domestic financing mechanisms for social protection in Malawi: The project will ensure that the government is engaged in potential strategies and mechanisms to increase domestic resource allocation and diversify sources for social protection measures;
- Information and evidence generation: The project will generate evidence about the financing and coverage potentials and the necessary investments required for the introduction of a more comprehensive social insurance system in Malawi;
- Capacity building: This component aims to ensure that the government has increased knowledge on financial management and financing mechanisms for social protection.
Key activities in 2020
The period October to December 2020 was used to cultivate the initial groundwork for project implementation. This involved consultations with stakeholders to define the scope of work, as well as progressing the requisite procurement and partnership engagements.
The Malawi government, which is the main project partner, was engaged to solicit their buy-in and ownership of the project objectives, as well as to discuss the delivery approach.
Terms of reference to guide the project components have been drafted and recruitment of external collaborators to support implementation is underway.
The main counterparts for the project are the Ministry of Economic Planning and Development MoEPD), through the Division of Poverty Reduction and Social Protection (PRSP); the Ministry of Labour; and the Ministry of Finance, particularly the Debt and Aid and Budget Departments. Other Ministries, including Gender, Community Development and Social Welfare, and 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 will promote 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 will also be key to the implementation of the actions.
Louis Msuku, Social Protection National Programme Officer, firstname.lastname@example.org