By Adekunle Agbetiloye
Canva billionaires Melanie Perkins and Cliff Obrecht are investing $150 million in an ambitious experiment that challenges conventional aid by putting cash directly into the hands of Malawi’s poorest households.
- Canva founders Melanie Perkins and Cliff Obrecht are investing $150 million into a cash transfer program in Malawi, giving money directly to the poorest households.
- Launched in 2021, the initiative has grown into the largest unconditional cash transfer program ever in a low-income country, with each adult recipient getting about $550.
- Early results show 90% of recipients in one area moved above the extreme poverty line in three months, alongside significant drops in child mortality and illness, and increased school enrollment.
- Economic research found that each $1,000 transferred boosted local economic activity by about $2,400, and fears of inflation have not materialised.
Under the programme, adults receive around 550 dollars each, paid directly through mobile-phone transfers with no conditions attached. More than 52.5 million dollars has already reached over 139,000 people since 2023, with the balance set to flow over the next four years.
Early findings point to a striking impact. In the Khongoni sub-district, where every adult was paid, GiveDirectly reported that 90 percent of recipients had risen above the extreme-poverty line three months after receiving the money. The organisation also recorded a 48 percent drop in child mortality, a 27 percent fall in illness and a 23 percent rise in school enrolment.
The scale of the commitment adds fresh weight to a long-running debate over the effectiveness of giving cash directly to the poor, rather than channelling aid through goods and services, and positions Malawi as a testing ground for whether unconditional transfers can accelerate an exit from extreme poverty.
