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The Zambia Social Cash Transfer (SCT) programme is implemented by the Ministry of Community Development and Maternal and Child Health and has been implemented in Zambia since 2003. As of December 2014, the programme has reached 150,000 households in 50 districts, with concrete plans to scale it up nationwide in the near future. The main goal of the SCT is to reduce extreme poverty and prevent its intergenerational transmission. Results of an impact evaluation conducted by FAO, the United Nations Children’s Fund (UNICEF) and US research institutions indicate that the programme is having a positive impact: increased food security, improved child well-being, better living conditions, and increased productivity and ownership of productive assets.
Starting a new chapter in small business: Ruth and Boniso’s story
Ruth Simutombo, 28, is one of the beneficiaries of the Social Cash Transfer (SCT) programme. She lives with her son Patrick and her sister’s son Sichimwa in Ngandu village in the southern province of Kazungula, where the programme started in 2003.
It was late afternoon and she was slowly stirring Nshima – a dish made from maize flour and water that is a staple food in Zambia – as she recounts how participating in the transfer programme has changed her life.
“I used to live in very poor conditions. I couldn’t afford my own house, so we had to live with my grandmother. Now, I get money every month, and I’ve moved into a new house with my two children, bought them school uniforms, and paid for their school fees. Patrick wants to be a lawyer, Sichimwa wants to be a teacher… Now I can help them realize their dreams.”
Ruth also took part in a training programme that taught families how to save and invest. With her new skills she was able to open a small shop in the local market, selling fruit, soft drinks and vegetables.
Ruth is just one of many examples of the positive impact of cash transfers in the country. To reduce poverty levels and their intergenerational transmission, the government targets labor-constrained and extremely poor households through SCTs. To qualify, households must meet certain criteria, including place of residence, proportion of working-age family members, and benefit levels.
“I will always be grateful for the support I received,” said Boniso Mondandi of Makalanguza village, as she waited in line to receive her bimonthly payment of 140 kwacha (about $27). “Without their help, I would not be able to open my small shop selling homemade bread, hats and dried vegetables. I would not have hired people to work on my farm, nor would I be able to send my grandchildren to school.”
An assessment of the impact of SCT by FAO, UNICEF and US research institutions showed that beneficiaries increased the area of land used for crop production by 34 percent and more than doubled their spending on agricultural inputs. Land inputs and cultivation increased the value of the 2012 rainy season harvest by nearly 50 percent, which was sold mainly on local markets.
The program not only impacts the direct beneficiaries, but also the communities they live in. When beneficiaries spend money locally, non-beneficiary households that provide goods and services also benefit from increased cash flow in the community. For example, for every K1 transferred to a beneficiary, up to K0.79 in additional income is generated, most of which accrues to non-beneficiaries.
Evidence also shows important improvements in food security, with an increase in the proportion of households owning livestock such as goats, cows and chickens.
Hope for a better future
In the coming months and years, FAO plans to expand its research programme in the country to: i) assess the long-term impact of the programme on productive activities and labour deployment; ii) conduct qualitative case studies on the potential contribution of social protection interventions to decent rural employment; and iii) provide evidence on the added value of combined agriculture and social protection interventions in improving household resilience, food security and nutrition, and reducing poverty.
Combined with sound policy measures, the programme will strengthen governments’ capacity to better coordinate agricultural and social protection interventions. It will also deepen policymakers’ understanding of how to break the intergenerational poverty cycle and demonstrate that cash transfers can help households become more productive.
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