Scaling Digital Delivery in Malawi’s Social Cash Transfer Program

Key Findings and Recommendations

Below are our key findings and recommendations:

Transition to E-payments

1. Community-level meetings are the most effective communication method for beneficiaries to learn about the transition to e-payments. These meetings facilitate direct interaction between beneficiaries and officials, fostering understanding and engagement. However, many beneficiaries do not receive timely or sufficient training or orientation on the new e-payment system. Therefore, community-level meetings should be extensively utilized to inform beneficiaries about e-payment transitions, ensuring widespread awareness and understanding. Additionally, targeted hands-on training sessions and user-friendly instructional materials in local languages with vignettes on mobile money should be offered to facilitate comprehension and usage of the e-payment system, especially in rural communities.

Process of Receiving Payments

1. Notifications about disbursements primarily through SMS exclude beneficiaries without phones, causing communication gaps that result in uncertainty and potential financial strain. As a result, beneficiaries often miss timely access to their funds, exacerbating their financial instability. Additionally, discrepancies between the amounts beneficiaries are told they will receive and the amounts they actually receive, and variations in monthly payments create financial uncertainty. SCTP should leverage Community Social Support Committees (CSSCs) to relay the information to beneficiaries, given their proximity and familiarity with local communities, and encourage community members with phones to inform others when funds are available. Additionally, SCTP should implement a more consistent disbursement plan to build trust and mitigate financial strains on beneficiaries. Furthermore, SCTP should leverage the notifications that beneficiaries receive about disbursements to communicate the exact amount of funds they should expect.

Perceived Impact on Spending and Financial Management

1. Some beneficiaries report that the e-payment system has influenced how they spend their money, allowing for better planning, prioritizing essential needs, and avoiding impulsive expenditures. However, most maintain that the transition has yet to significantly affect their spending habits. Challenges such as deductions, travel costs, irregular fund disbursements, and low transfer amounts hinder savings. To address these issues, SCTP should implement light-touch financial literacy training during the transition stage to help beneficiaries maximize the benefits of electronic payments and improve their financial planning and budgeting skills.

Mobile Phone Access and Usage

1. Many beneficiaries, particularly in rural areas, have limited or no access to mobile phones and often rely on family members or others to access and use mobile phones for transactions. Additionally, elderly beneficiaries frequently forget their PINs and rely on others, leading to issues of theft and fraud. SCTP should improve mobile phone accessibility for beneficiaries, especially in rural areas, by providing affordable options. Additionally, robust training programs focused on mobile money usage and security should be implemented, tailored to the needs of beneficiaries, including elderly individuals.

Accessing Cash Transfers via E-Payments

1. Beneficiaries highlight the convenience and flexibility of withdrawals, as well as access to a savings tool, as the main benefits of the e-payment system. SCTP should conduct regular sensitization meetings to reinforce these benefits and functionalities, emphasizing the system’s security and reliability to build trust among beneficiaries.
2. Beneficiaries, particularly in rural areas, often travel long distances to reach the nearest mobile money agent, incurring significant transport costs. Many face challenges with agent liquidity, as agents frequently lack sufficient cash for withdrawals. Additionally, issues such as unexpected deductions, congestion at agent locations, SIM card problems, and network issues further complicate access to funds. Many beneficiaries are unaware of transaction fees and hold myths about the disappearance of funds, leading to unnecessary withdrawals. SCTP should work with mobile network providers to increase the number of mobile money agents in rural areas. SCTP should also implement awareness initiatives to burst myths around e-payments and clarify transaction fees.

Access Challenges Faced by Beneficiaries Living with Disabilities

1. Due to mobility issues, people with disabilities face challenges traveling long distances to mobile money agents. SCTP should implement special assistance programs for people with disabilities through trusted helpers/volunteers and mobilizing aids for mobility or access.

Security Risks of the E-Payment System

1. Many beneficiaries face fraud and phishing attempts, with numerous reports of suspicious messages or calls and some experiencing SIM card theft. Beneficiaries sometimes experience theft by family members who misuse their responsibility to withdraw funds on their behalf. SCTP should implement targeted messaging to detect suspicious messages and calls, protect personal information, properly use SIM cards, and collaborate with law enforcement and regulatory bodies to mitigate security risks in the e-payment system.

Challenges of Grievance Redress

1. Almost all beneficiaries know CSSC members as a channel for reporting grievances, and many feel comfortable reporting issues with the e-payment system. However, some beneficiaries hesitate due to fear or lack of knowledge about where to report. SCTP should leverage community meetings and text messages to inform beneficiaries of the different feedback channels and increase awareness.
2. Most beneficiaries report that their complaints have never been resolved, perceiving the grievance mechanism as ineffective, and are unsatisfied with the outcomes. District officers also report that service providers like TNM often respond slowly to beneficiary complaints and technical issues, hampering the efficient operation of the e-payment system and leaving many beneficiaries without timely solutions. SCTP should collaborate with MNOs and CSSCs to establish a more efficient and responsive complaint resolution process geared solely towards MSCTP complaints. This process should include clarifying protocols, establishing timelines for service providers like TNM to respond to queries, and setting up a dedicated support team within service providers. Additionally, an accountability system should regularly follow up on reported issues to ensure that beneficiaries’ concerns are tracked and addressed. Address logistical challenges in cluster meetings by providing adequate transportation support for CSSC members.
3. Some beneficiaries fear lodging complaints will result in punishment or withdrawal from the program. SCTP should clearly communicate to beneficiaries that lodging complaints will not result in punishment or withdrawal, alleviating fears and encouraging more reporting.
4. Some beneficiaries receive discouraging feedback or are ignored when they report issues, reducing their comfort in using the grievance mechanism. SCTP should conduct comprehensive training for CSSC members and relevant staff on handling grievances with empathy and professionalism to ensure supportive responses and increase beneficiary confidence in the grievance process.

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Read the full report here.