Traders Celebrate Malawi's Urban Cash Transfers, Hopeful for Business Boost
Traders say the cash influx means more money will circulate, trickling down to boost their sales.
BLANTYRE, Malawi — Traders in Malawi's cities are celebrating the start of an emergency cash transfer program for urban households, expressing optimism it will revive their businesses struggling from Cyclone Freddy's impact and the devaluation of the country's currency, writes Chrissie Hazimthera Mainjeni.
On Monday, Malawi's Ministry of Local Government and Unity began disbursing K150,000 each to 105,000 households in the cities of Blantyre, Zomba, Lilongwe and Mzuzu affected by the cyclone and the kwacha's devaluation.
Over K6 billion will be disbursed under the Emergency Urban Cash Transfer Program funded by the World Bank and other donors. In Blantyre alone, over 43,000 households were targeted.
Traders say the cash influx means more money will circulate, trickling down to boost their sales.
"Since devaluation of the currency took place, business has been slow due to lack of buying power from our customers. This has affected our businesses so much to the point that we could go without selling any item on a bad day," said Stella Malani, who runs a hawker business in Blantyre's Manase township.
Jane Thomas, a fritter vendor, attested that business has already increased from the moment beneficiaries started receiving the cash. "We are very hopeful of high returns because business has now normalized. People are buying our commodities like hot cakes," she said.
Renowned economist Dr. Bertha Bangara praised the program, saying it will positively impact Malawi's economy and boost small businesses in particular after devaluation left many unable to afford basic needs.
"I must say over 6 billion kwacha that will (be) disbursed is a lot of money that will yield good results if used properly. I expect the beneficiaries to use it wisely by buying food and invest it into small scale businesses for sustainability," Bangara said.
She welcomed the government extending the cash transfers to urban dwellers also facing economic challenges.
However, the acting president of the Economists Association of Malawi faulted the free handouts, arguing they threaten sustainability versus initiatives where money is earned.
"I would have loved if the beneficiaries had earned the money by doing something like food for work, than (being) given freely. You know things which come freely, freely they go, leaving the people in the same dire situation," the economist said.