COMSIP Cooperative Union has commenced distribution of funds to households under social protection programs who are graduating to start their own businesses.
The pilot graduation package is aimed at providing support to social cash transfer and public works program beneficiaries to graduate from extreme poverty into sustainable livelihood and is targeting 10, 400 households across the country.
Development Communication Officer for COMSIP Cooperative Union Limited-Mercy Chaluma-told MIJ Online that in the first cohort, 3000 households who participated in MASAF 4 and Enhanced Public Works Program will receive $300 (an equivalent of K300,000) each as capital injection into their businesses to enhance income generation.
Speaking after disbursing funds to 22 beneficiaries in the area of Senior Chief Kadewele in Chiradzulu district, Chaluma said the graduating beneficiaries will be getting K200, 000 and will receive the remaining K100, 000 after showcasing capacity to run effective businesses based on trainings that COMSIP provided.
“As COMSIP we are implementing the Livelihoods component of the Social Support for Resilient Livelihood Project, and under the program we built capacity for the beneficiaries on savings and investments. So out of 470,000 beneficiaries targeted in the program, only 10,400 are targeted for a graduation package and that should tell you that it’s a rigorous process that ensures those graduating are indeed well equipped to run and manage their businesses for improved livelihoods.” Chaluma explained
Meanwhile COMSIP is disbursing the funds through its financial institution -Comsive whose Chief Executive Officer-Kelvin Msiska-told MIJ Online that those receiving funds are only those that had undergone an evaluation process and will continuously be monitored to ensure successful implementation of their business activities to qualify for the remaining K100,000.
“We are also playing as off-takers of their products especially for those dealing in farm produce, that way they already have an existing market.” Said Msiska
For Swema Kazunguza a 46-year-old mother of two, the lumpsum capital injection will go a long way in kickstarting her livestock production venture as well as expanding her small business of selling rice and cooking oil.
“I am very grateful for these funds; I will utilize this money very well using the knowledge that COMSIP Cooperative Union had imparted on us. Am now hopeful I will be able to care for my two children and provide them with their basic needs as my eldest is a secondary school student.” Said Kazunguza
Meanwhile Senior Chief Kadewele described the program as key in addressing high poverty levels in his area, but was quick to warn beneficiaries against misuse of the funds.
Kadewele warned that he will not tolerate spouses who will misuse the funds, promising to deliver severe undisclosed punishments to those planning to misappropriate the funds.
With $33 million support from World Bank, COMSIP Cooperative Union Limited is implementing the Livelihoods Support Program, one key subcomponent of the Malawi Social Support for Resilient Livelihoods Project. This is a Malawi government project being implemented through the National Local Government Finance Committee.