Reduce Rural Poverty

Evaluating local general equilibrium impacts of Zimbabwe`s Harmonized Social Cash Transfer Programme (HSCT)

Published:
Reports: Impact Evaluation Report

The Harmonized Social Cash Transfer (HSCT) is an unconditional cash transfer introduced in 2011 by the Ministry of Public Service, Labour and Social Welfare (MPSLSW) in order to strengthen the purchasing power of ultra-poor households who are labour constrained through cash transfers. The objectives of the programme include enabling recipient households to increase consumption above the poverty line, reduce the number of ultra-poor households and help beneficiaries avoid risky coping strategies such as child labour and early marriage. Moreover, the programme is expected to lead to improved nutritional status, health and education outcomes, as well as a reduction in violence. As of March 2014, 55 509 households in 20 districts had been enrolled, covering 247 645 individuals. Local economy-wide impact evaluation (LEWIE) simulation methods are used to assess the likely impacts of cash transfers on the local economy. When the Harmonized Social Cash Transfer programme gives money to beneficiary households, they spend it, buying goods and services. As this cash swirls around within wards and districts, it creates benefits for nonrecipient households as well who may provide the goods and services purchased by beneficiary households. This study finds that the Zimbabwe HSCT generates a total income multiplier of 1.73 in nominal terms with a confidence interval of 1.42 to 2.00. Each dollar of transfer has the potential to generate 1.73 dollars of total income within the project area.