In May 2020, Mary Clara Makungwa, Malawi’s Minister of Population Planning and Social Welfare, praised FDH Bank for its efforts in bringing financial inclusivity to residents of remote areas of the country via MtukulaPakhomo, an innovative social cash transfer electronic-payment service.
MtukulaPakhomo reaches out to ultra-poor, labour-constrained households, offering monthly financial support to improve their livelihoods.
Commending the scheme, Minister Makungwa explained that it was not always possible for Malawians in remove areas to have bank accounts. She said that following the success of the scheme, plans were underway to roll out the programme nationwide.
Lorraine Lusinje, spokesperson for FDH Financial Holdings, explained that the institution had entered into a four-year contract with the Malawian Government, committing to providing 15,400 beneficiaries each month with e-payment services via 93 pay points throughout Ntcheu District. She confirmed that, to-date, the bank had registered and opened accounts for more than 13,000 beneficiaries across the district.
Zigele Innocent, a scheme beneficiary from Ben Tchauya Village, explained that since she was poor, she sometimes had to go without food. Gift Kambadya, Principal Social Welfare Officer for Ntcheu District, confirmed that the scheme had achieved its objectives, improving the lives of the region’s ultra-poor by enabling households to buy poultry and livestock, which beneficiaries keep to sell on later, thereby earning even more.
Also known as the Malawi Social Cash Transfer, the programme’s main objectives are to increase school enrolment while simultaneously reducing hunger and poverty.
Piloted in 2006, the scheme was implemented by the Government of Malawi working in collaboration with development partners and expanded in 2012 and 2013.
About FDH Financial Holdings
With headquarters in Blantyre, Malawi, FDH Financial Holdings was founded by Dr Thomson Mpinganjira, the first Malawian to own a financial institution. Its subsidiaries include First Discount House, FDH Bank, FDH Money Bureau, and FDH Stockbrokers Limited.
Founded in November 2007 as part of group restructuring, this leading Malawian financial institution was created by Thomson Mpinganjira as part of his vision to leave a lasting legacy, setting the pace for generations of Malawians. Today, FDH Financial Holdings and its subsidiaries provides jobs for more than 800 Malawians, dominating the banking sector with its innovative services and products.
A keen philanthropist, Dr Mpinganjira has been recognised both regionally and internationally as a highly successful business leader and professional. In 2015, Dr Mpinganjira was honoured with a Capital Finance International Outstanding Corporate Leader Africa Award, receiving a Malawi Broadcasting Corporation Large Scale Entrepreneur of the Year Award in 2016.