cash transfer run out. A similar pattern can be seen for theample food supply period. However, generally, the householdfood consumption indicators tended to be better in thesecond round or period of ample food supply. This suggeststhat seasonality is an important factor to consider whendesigning cash transfer schemes especially the level of thecash transfer.
Food consumption indicators by periodFood consumption 1st round 2nd roundindicator (lean food (ample foodperiod) period)
# of weeks householdhas enough food after 3.31 3.90***receiving SCT# of meals per day foradults when household 2.59 2.78***has sufficient food# of meals per day forchildren when household 2.82 2.84has sufficient food# of meals per day foradults when SCT has 1.56 1.83***ran out# of meals per day forchildren when SCT 1.76 1.89***has ran out*** means statistically significant at 95%
Apart from gender, household expenditure was influenced bygeneral food availability. Food expenditure drastically reducedfrom the lean (round 1) to the ample (round 2) food period.Expenditure in agriculture remained the same across the two
Lesson 5: A significant proportion of SCT isspent on income generating activities,partly because beneficiaries do not have theguarantee that the transfers will becontinued because of the pilot nature of theschemes and also the fact that the transferlevels are inadequate
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periods but that of businesses more than doubled. Althoughconsidered incapacitated, these households are in factengaged in productive activities and this is important toconsider in future designs of SCT, especially the need forcomplimentary services such as village savings and loansschemes, livestock extension and entrepreneurship training.The share on social obligations reduced perhaps becausethey had their own food in the 2 round. The relative highlevels of investment calls to question the targeting objectivewhich focuses on food consumption for incapacitatedhouseholds.
Share (%) of expenditure of cash transfers by periodPercent share by periodExpenditure categoryLean food Ample foodperiod period
Food 30 23 Agricultural investment 17 17House maintenance including rent 12 13Social obligations 11 8Education 10 9Small business and savings 7 15Health 4 5Other 9 10
Total 100 100
The fact that SCTs are predominantly spent within thecommunities means that the local economy is boosted thusbenefiting a wider community of traders and their families.63% of the SCTs were predominantly spent within a radius of 5 km of the beneficiary communities, either in the nearestlocal trading centers or to community members. 11% wasspent in neighboring villages and 26% was spent at thenearest urban centers. Female headed households tended tospend more of their SCT money in local trading centers and
Lesson 6: Most of the SCT is used incommunities where beneficiaries stayThe amounts paid to beneficiariesthrough SCTs
The Government pays cash transfers to beneficiaries ona bi-monthly basis. In Katete, beneficiaries receiveK60,000/month/individual (K120,000 bimonthly). In allthe other schemes, households without children receiveK40,000/month (K80,000 bimonthly) and those withchildren receive K50,000/month (K100,000 bimonthly).In addition to this, households with school goingchildren in Chipata receive a school bonus of K10,000/month/primary going child andK20,000/month/secondary going child (1US$ =ZMK3,700 – January 2008).
Sineli Zimba, a mother of 7 children from Navutika Compound in Chipata, buys some bags of charcoal when she receives her cash transfer. She then re-packs this into smaller packages for sale and continuesto have daily income to buy food and send her children to school. This way, “I am in control of my incomeand I am assured of food everyday!”