By Duncan Mlanjira
As a strategy towards considering executing the Coronavirus (COVID-19) national lockdown, President Peter Mutharika is proceeding with new measures and that include introducing an Emergency Cash Transfer Program to serve small scale businesses in and around major markets in Blantyre, Lilongwe, Mzuzu, Zomba and others.
In the address to the nation on Tuesday as an update on the fight against COVID-19 , President Mutharika “this is an extended cash transfer facility to support Malawians who depend on the markets for their survival” and that “Government will target a minimum of 172,000 households in these areas, representing an estimated 35 percent of the urban population”.
President Peter Mutharika
“Considering family size of around 5 people,based on the 2018 Household Census, this will translate to just under a million people who will be reached with this measure.
“The program will be implemented for a period of six months translating into 3 months of response and 3 months of recovery.
“Each identified household will be paid electronically through mobile payments at K35,000 per month and the amount is based on the prevailing Government minimum wage rate.”
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The President said he has directed the Ministry of Finance, Economic Planning & Development; Ministry of Local Government & Rural Development and Ministry of Population & Social Welfare to devise an implementation process which will include registration of households in the hotspot areas and its immediate implementation beginning the month of May 2020.
“In addition to Emergency Cash Transfers in the peri-urban areas, my Government will also provide cash top-up to existing beneficiaries of Mtukula Pakhomo Program in all the 28 Districts.
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“This will strengthen livelihood interventions aimed at minimizing negative coping mechanisms for the poor.”
He disclosed that details on implementation of these interventions will be announced shortly.
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The President also highlighted some of the measures already undertaken that included him and the whole Cabinet donating part of their salaries to the fight against the pandemic; reducing fuel prices in order to keep the cost of living low and working with Commercial Banks to make borrowing bearable.
“Banks are now giving moratorium to loan repayments and restructuring loan facilities of their clients,” the President said.
Reserve Bank of Malawi
“The Reserve Bank of Malawi is managing well the liquidity of the banking sector and the exchange rate as I directed and the tobacco market is smoothly operating with enhanced COVID-19 measures as directed.
“Imports and exports of strategic commodities are smoothly flowing between our country and neighbouring countries to maintain the chain of supply and we have waived fees and charges on electronic payments.
Coronavirus alert
He added that ADMARC is actively buying produce from farmers at reasonable prices as directed; allowances for healthcare workers have been increased as well as increasing access to Malawi Enterprise Development Fund (MEDF) loans to reach out to more people across the country.
“We have introduced tax grace and made various tax measures more affordable,” the President said.