$700 Cash Grants Transform Lives in Malawi

Summary

Bloomberg's Antony Sguazzin reports on GiveDirectly's Malawi program, backed by Canva, which distributes about $700 per eligible adult with no spending restrictions. Recipients are using funds for small businesses, livestock, and home improvements. The program is presented as a test of whether large-scale direct cash transfers can be a more efficient development aid model.

• GiveDirectly is running a district-level cash transfer program in two Malawi districts.
• About $700 per eligible adult is distributed, roughly equal to Malawi's annual income per person.
• Canva founders provided $150 million in backing and had input into program design.
• Funds are delivered mostly via mobile finance apps with minimal administration.
• Recipients report spending on businesses, livestock, sewing machines, refrigerators, and housing improvements.
• About 83% of donor money goes directly to recipients, higher than typical aid programs.
• The program may be replicated in other countries or parts of Malawi if seen as successful.