Social safety nets and household vulnerability to income shocks and food insecurity among poor households in Malawi

Chibade, Evans

Social safety nets and household vulnerability to income shocks and food insecurity among poor households in Malawi

Thesis / Dissertation

2026

Publisher

University of Cape Town

Department

Graduate School of Business (GSB)

Faculty

Faculty of Commerce

Abstract

This study assesses the effectiveness of formal and informal social safety nets (SSNs) in reducing household vulnerability to income shocks and enhancing food security among poor households in Malawi. Utilizing data from the Fifth Integrated Household Survey, the research employs a set of econometric models, including the multivariate probit, Poisson regression, Tobit and ordered logit, to analyze the impact of social safety nets on three key outcomes: participation in income-generating activities, household food consumption expenditure, and multidimensional food security indicators, including Household Dietary Diversity Score, Reduced Coping Strategies Index, Food Consumption Score, and Food Insecurity Experience Scale. The findings reveal that government cash transfers are effective in stimulating investment in productive income-generating activities like livestock and non-farm businesses, thereby enhancing dietary diversity and food consumption scores. Both formal and informal social safety nets play a crucial role in consumption smoothing and reducing reliance on negative coping strategies. A critical finding is that households acting as providers of support within informal networks exhibit significantly greater resilience and food security than those solely receiving aid. However, the transformative potential of SSNs is constrained by structural factors: Urban residence, mobile phone ownership, and diversified livelihoods are key determinants of resilience. The study concludes that while SSNs are essential for immediate welfare and protection, achieving sustainable poverty reduction requires integrating them with complementary "cash-plus" interventions, such as access to extension services and market linkages, to address the underlying causes of vulnerability.