WASHINGTON, September 17, 2026 — Malawi is expected to create more and better paid jobs, strengthen social protection delivery to the poorest households, and build lasting resilience against the droughts and floods that repeatedly devastate and erode livelihoods faster than families can recover through the newly approved $165.9 million grant project, Integrated Social Protection for Resilience and Opportunity Project (INSPIRE-O).

The project will benefit vulnerable households across all 25 districts and four cities of Malawi by combining adaptive safety nets with climate-smart public works and economic inclusion programs for the most vulnerable people, especially women and youth, to ensure they are protected when crises strike and can build better futures. In addition, the project will deploy additional drought-responsive financing mechanisms across Malawi's 10 most drought-prone districts.

INSPIRE-O comprises $110 million from the International Development Association (IDA), $46.7 million from the Malawi Social Protection Multi-Donor Trust Fund (MDTF) which includes the European Union, Ireland, Norway, Iceland, Foreign Commonwealth and Development Office, FCDO and Germany, and $9.2 million from the Global Shield Financing Facility (GSFF).

With more than half of Malawi’s population living in poverty, persistent economic fragility, increased exposure to droughts, floods, and other climate shocks, and a growing youth bulge strain an already fragile labor market. Malawi’s most vulnerable households urgently need a stronger safety net — one that not only protects them today but creates pathways out of poverty. Integrated social protection systems that combine direct income support with job creation and skills development are among the most effective tools for breaking the cycle of poverty, particularly when they are built to withstand and adapt to climate-related crises.

This investment signals the World Bank Group’s strong and enduring partnership with Malawi at a critical time where job opportunities for young Malawians remain very limited and climatic shocks persist, especially with the upcoming El Nino weather phenomenon. INSPIRE-O is not just about providing a safety net — it is about building a foundation for inclusive economic growth and building resilience by strengthening systems that deliver social protection, expanding job opportunities for women and youth, and embedding climate resilience at the heart of program design. -- Abdu Muwonge (World Bank Group Country Manager for Malawi)

INSPIRE-O builds on the success of the World Bank’s previous Social Support for Resilient Livelihoods Project (SSRLP) and is structured around three integrated components:  the adaptive safety nets component which will expand and strengthen the Government of Malawi’s Social Cash Transfer Program (SCTP); the Jobs NOW component which will create immediate and sustainable income pathways through climate-smart labor-intensive public works for households; and the institutional strengthening, digital delivery systems and project management component that will modernize the Malawi Social Registry, the Core Management Information System (COREMIS), and digital payment infrastructure to improve targeting, reduce leakage, and enhance transparency across the social protection system in Malawi.

“INSPIRE-O” is designed to meet people where they are — providing reliable cash transfers to the ultra-poor households, activating rapid financing when climate shocks hit, and creating climate-smart jobs that build lasting livelihoods,” said Chipo Msowoya, Senior Social Protection Specialist at the World Bank Group in Malawi. “This project reflects a generation of learning about what works in integrated social protection, and we are confident it will deliver transformational results for Malawian families.” 

The original news release was published on https://www.worldbank.org/. Link here.