The World Bank says the financing of safety nets in Malawi are at levels that are not sustainable. According to the June 2019 Malawi Economic Monitor, government currently finances only 6% of all Malawi’s safety net spending, which is being overshadowed by expenditure on regressive and less effective programs.

In the report, World banks’ country economist Priscilla Kandoole said from 2011 to 2016, close to 2.6% of gross domestic product (GDP) was spent on the Malawi Vulnerability Assessment Committee (Mvac), 2.2% on the Farm Input Subsidy Program (Fisp) and only 0.6% was spent on social safety net programs. as Malawi also has the fiscal space to devise a sustainable financing strategy to ensure the effectiveness of its safety net program into the future. “There are several options by which a more sustainable financing strategy could be established in the sector.” says Kandoole.

President Peter Mutharika, addressed the challenges affecting the sector, but insisted Fisp will not stop. He was speaking during the State of the Nation Address (Sona) during the state opening of the first meeting of the 48th session of Parliament and the 2019/2020 budget meeting in Lilongwe.