Navigating challenges and enhancing effectiveness : a comprehensive analysis of Zambia's social cash transfer programme for poverty alleviation.
Date: 2024-08-22
Institutions: European University Institute
Subjects: Zambia, development aid, household income, job creation, poverty

STG Policy Papers 

POLICY ANALYSIS 

NAVIGATING CHALLENGES AND 
ENHANCING EFFECTIVENESS: A 
COMPREHENSIVE ANALYSIS OF 
ZAMBIA'S SOCIAL CASH TRANSFER 
PROGRAMME FOR POVERTY 
ALLEVIATION 

Author:  
Mukuka Mpundu Mulenga 

Florence School of Transnational Governance 

ISSUE 2024/23
 AUGUST 2024 

  
 
 
 
 
 
  
 
 
 
EXECUTIVE SUMMARY 

Zambia is one of the countries with the highest levels of poverty and 
inequality with approximately 60.5% of the population living below 
the  poverty  line.  Rural  areas  are  more  affected,  with  82%  living  in 
poverty compared to 18% in urban areas. To combat this, Zambia's 
Vision 2030 aims to reduce the national poverty rate to below 20% 
and the government has implemented the Social Cash Transfer (SCT) 
programme  since  2003  to  provide  cash  benefits  to  vulnerable 
households.  Development  partners  such  the  World  Bank,  the 
governments of the United Kingdom and Sweden among others have 
provided  financing  for  the  SCT  programme.  However,  the  current 
programme  faces  challenges  such  as  dependence  on  external  aid, 
limited  coverage,  the  poverty  trap,  sustainability, 
inadequate 
funding, targeting errors, corruption, and high administration costs. 
This policy analysis argues the need for the government to promote 
entrepreneurial  skills  and  capacity  building  for  the  beneficiaries  of 
the Social Cash Transfer as opposed to continually disbursing funds 
to them. 

Author: 

Mukuka Mpundu Mulenga | Young African Leader Fellow (2023-2024), Florence 
School of Transnational Governance, EUI 

Views expressed in this publication reflect the opinion of individual authors and not 
those of the European University Institute 

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1. 

INTRODUCTION 

Poverty  reduction  is  one  of  the  major  priority 
areas  for  most  African  states  and  developing 
countries.  Several  measures  have  been 
identified  and  implemented  by  governments 
targeting poverty reduction. The Government of 
the Republic of Zambia (GRZ) has identified the 
Social  Cash  Transfer  (SCT)  as  one  of  the  many 
panaceas  which  can  be  used  to  alleviate 
extreme  poverty 
in  the  country,  especially 
among  rural  dwellers.1  In  2003  the  country’s 
parliament  enacted the law which brought  the 
SCT into effect. Its main aim was to improve the 
welfare  of  vulnerable  groups  in  the  country 
through poverty reduction. When the SCT policy 
was  introduced,  the  estimated  population  of 
Zambia was slightly above 10 million people, of 
which about 3.5 million lived in urban areas and 
the  remaining  6.4  million  in  rural  areas  –  35% 
and  65%  respectively.2  According  to  Zambia 
Statistics Agency (ZSA) reports, poverty levels in 
Zambia range from 50 to 60 percent, with about 
13 to 18 percent of the Zambian people living in 
abject  poverty.3  Poverty  levels  are  notably 
higher  among  rural  dwellers  especially  among 
the elderly, women and households headed by 
children. There has been a steady increase in the 
number of beneficiaries since the time the SCT 
was  inaugurated,  from  7,337  households  and 
4,850  individuals4  in  the  pilot  stage  (2003  to 
2010)  to  1,374,500  anticipated  beneficiary 
households 
imperative  to 
appreciate  that  there  have  also  been  some 
changes  in  state  governments,  with  each  new 
political  party  which  forms  a  government 
making SCT one of the most pronounced areas 
of  interest.  The  change  in  state  governments 
means  that  the  SCT  has  undergone  major 
paradigm shifts, although the core remains the 

in  2023. 

is 

It 

same:  poverty  reduction.  Even  though  the  SCT 
has  been  popularised  by  all  the  governments, 
this has come with more ‘political rhetoric’ than 
practical measures. 

THE RATIONALE BEHIND THE 

2. 
INTRODUCTION OF THE SCT IN ZAMBIA 

The Zambian government aimed to improve the 
welfare  of  the  vulnerable  by  supplementing 
their  household  income,  and  not  necessarily 
it.  With  the  help  of  cooperating 
replacing 
partners,  the  government  wanted  vulnerable 
groups to participate in the economic growth of 
the country with supplements which would help 
them  meet  the  needs  of  their  families.  In  this 
way, vulnerable families would at least be closer 
to  obtaining  the  basic  means  of  livelihood 
needed for survival.  

The SCT was also introduced to help the number 
of  learners  attending  school.  The  government 
argued  that  there  was  a  need  to  increase  the 
number  of  children  enrolled  in  and  attending 
primary education. This was to be made possible 
by helping the parents and guardians of learners 
with SCT. If properly utilised, SCT would cater for 
some school requisites such as books, uniforms, 
and shoes. The aim was to promote equity and 
equality  in  education  for  all  eligible  learners 
regardless of sex, social status, and age. 

It was also felt that most vulnerable households 
were failing to have three decent meals a day. 
Therefore,  the  members  of  such  households 
from  malnutrition, 
were 
especially  the  young  ones.  The  government 
argued  that  with  the  SCT  affected  households 
were  likely  to  increase  the  number  of  meals 

to  suffer 

likely 

1 Pedro Arruda and Laura Dubois, A Brief History of Zambia’s Social Cash Transfer, International Policy Research Brief, Centre for Inclusive Growth, 
June 2018. 
2 GRZ, Zambia Human Development Report 2003, Eradication of Extreme Poverty and Hunger in Zambia: An Agenda for Enhancement of 
Millennium Development Goals, UNDP, Mission Press, 2003. 
3 Zambia Statistics Agency, Highlights of the 2023 Poverty Assessment in Zambia, Zamstats, 2003. 
4 Pedro Arruda and Laura Dubois, A Brief History of Zambia’s Social Cash Transfer, International Policy Research Brief, Centre for Inclusive Growth, 
June 2018. 

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from nothing or a single meal to at least two a 
day. 

disabled,  which  has  made  it  difficult  to  wholly 
succeed.7  

their 

Last  but not  least,  the  government hoped  that 
with  the  SCT  vulnerable  households  would 
increase 
asset  ownership.  Proper 
utilisation of such assets would help vulnerable 
families with  income  generation,  meaning that 
income  would  be 
existing 
supplemented with the income generated from 
proper utilisation of the SCT.  

sources  of 

EXPERIENCE OF SCT IN OTHER 

3. 
COUNTRIES 

It  is  important  to  note  that  most  countries  on 
the African continent have implemented the SCT 
to support the vulnerable in their populations. In 
Kenya,  Krystle  Muthoni  Kabare  researched  the 
use  of  a  Cash  Transfer  Programme  (CTP)  to 
address  poverty  and  vulnerability.  The  author 
improvement 
appreciated  the  progress 
through access to the CTP. The study estimated 
that  45.9%  of  the  population  continue  to  live 
below  $1.25  a  day.5  This  means  that  CTP  is 
working well for Kenya considering the low rate 
of poverty nationwide in comparison to Zambia 
which stands at 60.5%.6 

in 

Hannah  Kuper  et  al.  write  about  social 
protection  for  persons  with  disabilities 
in 
Tanzania.  They  explain  that  persons  with 
disabilities are more vulnerable to poverty and 
to  being  excluded  from  key  services  such  as 
health and education. Therefore, there is a need 
to  consider  persons  living  with  disabilities  as 
beneficiaries from cash arrangements using the 
right  channels,  although  the  authors  indicate 
that  this  comes  with  many  hurdles  for  the 

look  at 

Libby  Cha  and  Mira  Ramesh  compare  the 
formulation,  adoption,  and  implementation  of 
social protection between Zambia and Namibia. 
They 
the  policy  environment, 
institutional  arrangements,  and  the  challenges 
it  comes  to  social  protection 
faced  when 
mechanisms.  The  result  of  the  study  is  that 
Namibia  has  performed  much  better  than 
Zambia in all areas, especially in a universal non-
contributory  pension  for  the  elderly  which  has 
in  reducing  poverty.8 
been  fairly  effective 
Zambia  can  learn  from  Namibia  on  how  to 
handle SCT-related programmes. 

4. 

INAUGURATION OF SCT IN ZAMBIA 

The SCT was first piloted in five districts of the 
Republic of Zambia, three in Southern Province 
and  two  in  Eastern  Province,  over  four  years 
from  2003  to  2007.  The  Kalomo  District  of 
Southern Province was the inaugural district in 
2003  and  it  was  followed  by  the  Kazungula 
district  of  Southern  Province.  In  2006,  Monze 
(Southern  Province)  and  Chipata 
(Eastern 
Province)  were  added  to  the  SCT  programme. 
The  last  of  the  piloting  districts  was  Katete 
(Eastern  province)  which  came  on  board  in 
2007. 
5. 

ELIGIBILITY FOR SCT 

The initial criterion used to nominate would-be 
beneficiaries in the piloting stage between 2003 
and  2007  lacked  meritocracy.  This  view  is 
supported by Habasonda, who argues that: 

5 Krystle Muthoni Kabare, Social Protection in Kenya: The Use of Cash Transfer Programmes in Progressively Addressing Poverty and Vulnerability, 
Master’s Thesis, Linnaeus University, 2015, p.3. 
6 Zambia Statistics Agency, Highlights of the 2022 Poverty Assessment in Zambia, 2023. 
7 Hannah Kuper et al., Social Protection for Persons with Disabilities in Tanzania: Assessing the Level of Need and Inclusion, Tanzania: Deutsche 
Gesellschaft, 2015, p.3. 
8 Libby Cha and Mira Ramesh, Provision for Protection: Review of Social Protection in Zambia and Namibia, Occasional Papers Series, Southern 
African Institute for Policy and Research, 2017, pp.5-6. 

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The first format of the SCT used between 
2003 and 2010 had a targeting goal of 
covering the poorest ten percent of people in 
the districts in which it operated. At the time, 
beneficiary households were selected solely 
through community-based selection 
mechanisms, whereby community 
organisations ranked households in terms of 
poverty level albeit without any objective or 
standardised criteria to actually measure 
poverty levels.9 

and 

There were two diverse selection criteria used to 
recommend SCT beneficiaries in the first phase 
between  2003  and  2010.  Destituteness  and 
incapacitation 
labour-constrained 
households  qualified  for  SCT  in  the  Kalomo, 
Kazungula, Monze and Chipata pilots, although 
this  strategy  had  its  challenges.  In  the  Katete 
pilot,  elderly  people  were  targeted,  and  this 
worked  in  the  form  of  a  universal  pension 
scheme.10  

The  expansion  of  the  SCT  in  phase  two,  which 
was  implemented  between  2010  and  2014, 
targeted  districts  with  the  perceived  highest 
child mortality rate (children below the age of 5). 
This followed the successful piloting of the SCT, 
which ended in 2009. The districts in this cohort 
included  Shang’ombo  and  Kalabo  (Western 
Province),  Zambezi  (North-Western  Province), 
(Northern  Province),  and  Milenge 
Kaputa 
(Luapula Province). Another decisive factor was 
households  which  were  extremely  poor  with 
elderly people and orphans. Other prerequisites 
for  being  a  beneficiary  household  were  being 
headed  by  a  widow  and  having  members  with 

disabilities.  Among  the  districts  chosen  were 
Zambezi  (North-Western  Province),  Serenje 
(Central  Province),  and  Luwingu  (Northern 
Province). The selection of beneficiaries in phase 
two was done by social welfare workers with the 
help of nominated community members.11 

2014 marked the last and final phase of selecting 
would-be beneficiaries. It is imperative to note 
that  by  2014  53  districts  had  beneficiaries  on 
their lists. The 116 districts of Zambia were fully 
covered  in  2021  with  the  beneficiary  list  rising 
from 13 districts during the pilot phase in 2003 
to  994,000  individuals  in  2021.12  The  method 
used to select beneficiaries was now referred to 
as harmonised targeting.  

criteria 
are 

and  destitution 

The following are the criteria to be certified for 
SCT. Persons should pass a residency test. They 
should  be  a  resident  of  the  locality  for  six 
for 
continuous  months.  Other 
the 
incapacitation 
household  being  female  headed  with  three  or 
more children; the household being headed by a 
child  of  18  years  and  below;  the  household 
containing  chronically  or  terminally  ill  persons; 
and the household containing senior citizens of 
65 years old and above confirmed by the green 
National Registration Card (NRC).13 

6. 

FUNDING OF THE SCT 

When  the  SCT  programme  began  in  Zambia  in 
2003 with Kalomo district as the pilot, the main 
funders  were  the  Ministry  of  Community 
Development and Social Services (MCDSS). The 
German Aid Social Safety Net Project came in as 
an important co-operating partner and was very 

9 Habasonda, L.M. 2009. Political Economy of Cash Transfer in Zambia: A report prepared for the Overseas Development Institute. London: Overseas 
Development Institute. https://www.odi.org/sites/odi.org.uk/files/odi-assets/publications-opinion-files/5751.pdf. Accessed 5 March 2018. 
10 Chiwele, D.K. 2010. “Assessing administrative capacity and costs of cash transfer schemes in Zambia: Implications for rollout.” IPC-IG Country 
Study, No. 20. Brasília: International Policy Centre for Inclusive Growth. http://www.ipc-undp.org/pub/IPCCountryStudy20.pdf. Accessed 5 March 
2018. 
11 Pedro Arruda and Laura Dubois, A Brief History of Zambia’s Social Cash Transfer, International Policy Research Brief, Centre for Inclusive Growth, 
June 2018. 
12 GRZ, Ministry of Community Development and Social Services, Social Cash Transfer, Government Printers, Lusaka, 2022. 
13 Pedro Arruda and Laura Dubois, A Brief History of Zambia’s Social Cash Transfer, International Policy Research Brief, Centre for Inclusive Growth, 
June 2018. 

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influential in making decisions, especially on the 
pilot programme.14 

was an impact on the 11-14 year age range, in 
which knowledge inequality was noticed.17  

When it was evident that the SCT was achieving 
its aims, some more external help from donors 
was needed. This is because diverse issues were 
now included to ensure that poverty reduction 
was  guaranteed  from  different  perspectives. 
What started with the GRZ and German Aid saw 
a number of cooperating partners coming to the 
fore. These included the International Bank for 
Reconstruction  and  Development  (IBDR)  or 
World Bank and the governments of the United 
States of America (USAID), Sweden (SIDA), and 
Ireland (IAID), among others.15 

DIVERGENT VIEWS ON THE SUCCESSES 

7. 
AND FAILURES OF THE SCT 

Divergent views have arisen in the wake of the 
operation  of  the  SCT  in  Zambia.  These  views 
have  come  as  a  result  of  research  which  has 
been conducted by various scholars in different 
geographical areas. 

It  was  found  that  when  the  SCT  programme 
started, and especially during its pilot stage, one 
of  the  areas  where  there  was  a  notable 
improvement  was  the  education  of  children  in 
Monze district. There was increased enrolment 
of children in school, which went up by 7 percent 
for  older  ones  and  20  percent  for  younger 
ones.16  The  improved  enrolment  came  as  a 
result of the supplementary income which was 
given  to  the  families  which  these  vulnerable 
children came from. Michelo shows that in the 
first 48 months of implementing the SCT, there 

On  the  other  hand,  Michelo  also  gives  a 
contradictory  view  that no  impact  was  noticed 
on  the  4-7  year,  8-10  year  and  15-17  year  age 
groups,  although  no  reason  is  cited.  Similarly 
there  are  reservations  on  the 
impact  of 
in 
education  on  children  going  to  school 
Lufwanyama  district,  particularly  beginning  in 
2017 when the SCT was implemented with many 
irregularities and inconsistencies. In this period, 
Save the Children commissioned a study which 
discovered  that  there  was  poor  attendance  by 
children  who  relied  on  SCT.  This  gave  rise  to 
other problems involving child neglect, teenage 
pregnancies and parents’ inability to afford the 
school uniform.18 This shows that, depending on 
the  area  of  implementation,  the  SCT  impacted 
children’s  education  either  positively  or 
negatively. 

In  the  area  of  improved  health,  some  positive 
advances were noted in the pilot stage in Monze 
district.  The  number  of  incidents  of  illness 
reduced  drastically  from  43  percent  to  35 
percent.  This  reduction  in  illness  could  be 
associated with households having at least two 
meals a day, the proportion of which increased 
from 35 percent to 57 percent.19 This shows that 
the SCT was moving in the right trajectory as far 
as  ending  poverty  among 
intended 
beneficiaries was concerned.  

the 

However, it was later found that inconsistencies 
and  irregularities  in the implementation  of  the 
SCT  had  many  negative  effects  on  families.  A 
tremendous  increase  in  hunger  was  observed 

14 GRZ, Ministry of Community Development and Social Services, Social Cash Transfer, Government Printers, Lusaka, 2022. 
15 Pedro Arruda and Laura Dubois, A Brief History of Zambia’s Social Cash Transfer, International Policy Research Brief, Centre for Inclusive Growth, 
June 2018. 
16 David Siedenfeld and Sudhanshu Handa, Results of the Three-year Impact Evaluation of Zambia’s Cash Transfer Programme in Monze District, 
Fifth Report, June, 2011.  
17 Stanford Michelo, How Zambia’s Social Protection Services and Programmes Helped Inequality and Reduced Poverty, Expert Meeting on 
Addressing Inequalities and Challenges to Social Inclusion through Fiscal, Wage and Social Protection, 25-27 June 2018, United Nations, New York. 
18 Save the Children, Falling Through the Cracks: The Impact of Inconsistent Social Cash Transfer on Children in Lufwanyama district of Zambia. 
19 Stanford Michelo, How Zambia’s Social Protection Services and Programmes helped Inequality and Reduced Poverty, Expert Meeting on 
Addressing Inequalities and Challenges to Social Inclusion through Fiscal, Wage and Social Protection, 25-27 June 2018, United Nations, New York. 

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among  households  and  this  mostly  affected 
they  are  more 
children  and  women  as 
susceptible to it. This came about as a result of 
food  insecurity  and  marginalisation  brought 
inconsistencies  and 
about  as  a  result  of 
irregularities  associated with the  disbursement 
of the SCT.20 It can therefore be concluded that 
while the SCT had positive effects in some areas 
it  was  different  in  other  areas,  as  was  seen  by 
Save the Children. 

Alleviation of poverty depended on the amount 
received  and  how  beneficiaries  utilised  the 
funds.  Beneficiaries  in  Monze  district  were 
entitled to 40,000 to 50,000 Kwacha, which was 
equivalent to 8 to 10 dollars per household. The 
amount  per  household  depended  on  the 
number of vulnerable children.21 This was a step 
in  the  right  direction  as  the  beneficiary 
households had their income supplemented.  

after 

poverty, 

particularly 
2017. 

There  were,  however,  instances  when  the  SCT 
programme  failed  to  meet  the  expectation  of 
with 
alleviating 
inconsistencies 
Despite 
commitments by the government, 2020 was one 
of the worst years for the recipients of the SCT 
as  no  disbursement  was  made  in  that  year.22 
This shows that at times the SCT totally failed to 
meet  people’s  expectations  and  so  did  not 
achieve its objectives. 

Based  on  these  contrasting  views  on  the 
successes  and  failures  of  the  SCT  in  Zambia,  it 
can be concluded that, although some successes 
were  noted,  the  Zambian  government  needed 
to  do  more  to  help  the  less  privileged.  It  is 
some  areas  where 
unfortunate 
irregularities  were  not 
inconsistencies  and 
uncommon families became more stressed and 
children were most affected. 

that 

in 

One area in which children in vulnerable families 
suffered most was care. Instead of being cared 
for by their parents or guardians, they became 
caretakers,  especially  in  situations  where  the 
parents  or  guardians  were  unable  to  care  for 
them due to old age or other conditions such as 
disabilities. Without the SCT, some children had 
unbearable  lives  as  they  were  now  exposed  to 
child labour in order to fend for their families.23 
It can therefore be argued that the SCT failed to 
work  well  in  Zambia  compared  to  Kenya  and 
Namibia.  This  is  because  poverty  levels  in 
Zambia have remained high from the time SCT 
was inaugurated in 2003 until now.  

8. 

CHALLENGES FACING THE SCT 

Since  its  inauguration  in  2003,  there  has  been 
much speculation on how the SCT has worked in 
terms  of  meeting  its  objective,  which  is  to 
rural 
reduce  poverty,  particularly  among 
dwellers.  The  office  of  the  Auditor  General  in 
accordance  with  Article  250  of  the  2016 
Amended  Constitution  Act  Number  2  and  the 
Public  Finance  Management  Act  conducted  an 
audit 
the  efficiency  and 
effectiveness of the SCT programme. The report 
showed  that  inefficiencies  and  irregularities 
were not uncommon. Some of the inefficiencies 
and  irregularities  noted  were  in  the  areas  of 
selection  of  beneficiaries, 
administration, 
delayed  issuance  of  SCT,  a  lack  of  regular 
reviews, and corruption.24 

to  determine 

8.1 Administration of the SCT 

One of the notable challenges was that despite 
large SCT funds being released by the GRZ and 
its  cooperating  partners,  the  rate  at  which  the 

20 Save the Children, Falling Through the Cracks: The Impact of Inconsistent Social Cash Transfer on Children in Lufwanyama district of Zambia. 
21 David Siedenfeld and Sudhanshu Handa, Results of the Three-year Impact Evaluation of Zambia’s Cash Transfer Programme in Monze District, 
Fifth Report, June 2011. 
22 Save the Children, Falling Through the Cracks: The Impact of Inconsistent Social Cash Transfer on Children in Lufwanyama district of Zambia. 
23 Save the Children, Falling Through the Cracks: The Impact of Inconsistent Social Cash Transfer on Children in Lufwanyama district of Zambia. 
24 PMRC Blog – The Report of the Auditor General on Social Cash Transfer in Zambia for the period 2014 to 2017. 

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programme  expanded  to  the  districts  it  was 
intended for was far from that anticipated. For 
instance,  in  2017  its  coverage  of  the  targeted 
districts  stood  at  76.9%.25  One  of  the  main 
reasons for failing to reach the number targeted 
was that the  government directed most  of the 
resources to administration of the programme. 
Officers in the MCDSS and other ministries at the 
national, provincial, and district levels used most 
of  the  funds  to  implement  programmes  and 
activities leading to high administration costs.  

A number of internal and external programmes 
consumed  many  funds  in  the  form  of  daily 
subsistence  allowances  (DSAs)  and  transport 
refunds,  among  other  logistical  payments.  This 
assertion  is  supported  by  the  2017  Auditors 
General  Report,  which  confirmed  that  about  K 
317,748,992.42 was spent on administration out 
of  K  760,516,736.29  transferred,  representing 
42%.26  

from  the  ZAPLD,  representing  0.9%  eligible 
candidates in a period of 2 to 140 months.28 
Other  cases  of  ineligibility  in  the  selection 
process  can  be  cited  regarding  the  criteria  of 
extreme  poverty  households  and  households 
with aged members. Although the MCDSS works 
in collaboration with District Welfare Assistance 
Committees  (DWACs)  and  Community  Welfare 
(CWACs)  to  select 
Assistance  Committees 
would-be  beneficiaries,  politics  and  nepotism 
have had an upper hand in the identification of 
beneficiaries. There are instances, particularly in 
the  pre-election  period,  when  the  ruling 
government  deliberately  extended  the  SCT 
programme to its purported strongholds with a 
view to gaining favour in the election. It is also 
not  uncommon  for  officers  at  all  levels  to 
influence  the  selection  by  putting  their  family 
members or close relatives as beneficiaries even 
if  they  do  not  qualify,  thereby  disadvantaging 
the intended beneficiaries of the programme.29 

8.2 Selection of beneficiaries 

8.3 Delayed issuance of the SCT 

One  of  the  eligibility  criteria  to  qualify  for  the 
SCT  is  disability  or  less  ability  or  limitations  in 
performing certain activities, especially physical 
ones.  For  a  person  to  qualify  in  this  category, 
they need to be certified disabled according to a 
ruling of the Policy Monitoring Research Centre 
(PMRC): “the disabled should have a medical or 
certification  from  the  Zambia  Agency  for 
Persons  Living  with  Disabilities  (ZAPLD)  to 
confirm  the  disability.”27  However,  from  the 
time that disability became a qualification many 
irregularities have been noted as the majority of 
people  enrolled  claiming  disability  were  not 
certified by the ZAPLD. According to a report by 
the Auditor General in 2017, the MCDSS paid K 
2,023,800 (225,000 US dollars) to 8,558 people 
of which only 76 had the correct documentation 

There is a clear-cut guideline on the distribution 
of the SCT which stipulates that all beneficiaries 
should be paid bi-monthly, meaning every two 
months.  However,  what  happens  in  reality  is 
completely different. With the expansion of the 
programme to all 116 districts of Zambia, many 
inconsistencies have been noted in the way the 
SCT is implemented. Various parts of the country 
are  behind  by  as  many  as  three  hundred  and 
thirty-two  days.30  It  is  not  a  secret  that  the 
payments  are  not  made  uniformly.  There  are 
in  which  beneficiaries  are 
even 
expected to be paid in arrears but unfortunately 
this does not happen.  

instances 

8.4 Lack of regular reviews of the dues paid to 
SCT beneficiaries 

25 PMRC Blog – The Report of the Auditor General on Social Cash Transfer in Zambia for the period 2014 to 2017 
26 PMRC Blog- The Report of the Auditor General on Social Cash Transfer in Zambia for the period 2014 to 2017. 
27 PMRC Blog- The Report of the Auditor General on Social Cash Transfer in Zambia for the period 2014 to 2017. 
28 PMRC Blog- The Report of the Auditor General on Social Cash Transfer in Zambia for the period 2014 to 2017. 
29 UNICEF Social protection budget brief: Scaling up social protection to improve lives and livelihoods for every child, 2023. 
30 PMRC Blog – The Report of the Auditor General on Social Cash Transfer in Zambia for the period 2014 to 2017. 

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The  Zambian  economy has not been  stable  for 
some  time  now.  There  is  fluctuation  which  at 
times is unbearable even for the formal sector. 
This  means  that  the  SCT  programme  needs 
regular  adjustments  upwards  for  it  to  meet  its 
intended  purpose.  In  reality  there  has  been  a 
very minimal adjustment since the time the SCT 
was  inaugurated  in  2003.  Between  2003  and 
2023,  which  is  a  20-year  period,  there  was  an 
adjustment  upwards  from  50  kwacha  to  200 
kwacha.  For  persons  with  disabilities,  the 
amount  was  increased  to  K400.31  The  table 
below shows the cost of living as established by 
the  Jesuit  Centre  for  Theological  Reflection 
(JCTR). 

Table 1. SCT funding against the cost of living as 
established by the JCTR 

Year   SCT 

in 

Kwacha 

US  dollar 
equivalent 

2003  40 

– 

19.42 

regular 

4.85 

10 
- 
bonus  for 
children 

2015  70 

– 

13.5 

regular 

2023  200 

– 

8 

regular 
400 
disabled 

– 

16 

Average 
needed  for 
a 
food 
basket  as 
estimated 
by the JCTR 
1,025 
Kwacha 
213.5 
dollars 

3,800 
Kwacha 
73.8 
dollars 
9,225 
Kwacha 
369 dollars 

Source: JCTR Monthly Reports on Food Baskets in Zambia. 32 

The above table shows the evolution of the SCT 
in  a  period  of  20  years  in  connection  with  the 
average food basket provided by the JCTR to a 
family  of  six  in  Lusaka.  It  should  be noted that 
the food basket is not the same in all the districts 
of Zambia. Some districts’ baskets can be lower 
than  Lusaka  although  the  variation  is  very 
minimal. The JCTR food basket does not include 
things  like  house  rent  or  transport.  The  table 
also provides the conversion rate in 2003, 2015, 
and 2023 to show how inflation has affected the 
beneficiaries of SCT. Therefore, considering the 
cost of living as determined by the JCTR, the SCT 
seems  too  little to  alleviate  poverty.  As  one  of 
the objectives of the SCT is to supplement and 
not replace the beneficiary’s income, we cannot 
hide  the  fact  that  the  majority  of  households, 
especially  in  rural  areas,  rely  on  the  SCT  for 
survival. They have very little or no other source 
of income with which to survive. Instabilities in 
foreign  exchange  and  the  prices  of  fuel  and 
electricity,  which  are  the  key  drivers  of  the 
economy,33 also play a crucial role in the benefit 
of the SCT among the beneficiary community. 

8.5 Corruption 

Corruption  is  yet  another  issue  which  has 
significantly  impacted  the  implementation  of 
the  SCT  programme. 
In  fact,  high  profile 
corruption  took  centre  stage  when  it  came  to 
the implementation of the SCT programme. One 
of  the  high-profile  cases  involved  a  former 
minister at the MCDSS who was arrested in 2017 
on 
for 
implementation  of  the  SCT.  The  minister  was 
arrested  in  a  joint  operation  by  the  Anti-
Corruption  Commission  (ACC)  and  the  Anti-
Money 
the  Drug 
Enforcement  Commission  (DEC).  The  minister 
was  arrested  and  was  subsequently  sentenced 

Laundering  Unit  of 

disregarding 

guidelines 

the 

31 Chileshe Musonda, Effects of the Social Cash Transfer Support Programme as an Economic Empowerment Tool for Women in Zambia: A Case 
Study of Mwanachingwala, MA Dissertation, UNZA, 2023. 
32 Jesuit Centre for Theological Reflection, Food Basket for Zambia, Monthly Bulletins. 
33 Roger Lionel, Smith Gregory and Morrisey Oliver, Exchange Rate and Inflation Dynamics in Zambia, Policy Research Paper, World Bank Group: 
2018. 

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     9 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
to  two  years 
imprisonment.  Some  donor 
communities  reacted  by  withdrawing  their  aid 
to the SCT.34 

8.6 Sustainability, dependency, and the 
poverty trap 

empowerment.  These  might  include  capacity 
building, vocational training, skills development, 
access to education and job placement services 
to help beneficiaries become economically self-
sufficient in the long run. 

it 

increased, 

the  programme 

It is imperative to note that sustaining the SCT 
programme in the long term may be a challenge 
due to financial constraints and a lack of a stable 
source of domestic funding. However, ensuring 
the continuity of the programme is essential for 
long-term poverty reduction. The SCT currently 
can  arguably  be  alleviating  immediate  poverty 
and  providing  short-term  relief  while  not 
addressing  the  underlying  structural  causes  of 
poverty. A UNICEF Social Protection Budget Brief 
argues  that  even  though  funding  of  social 
is  still 
protection  has  been 
questionable  whether 
is 
sustainable.35 It further finds that while funding 
for  social  protection  programmes  has  been 
scaled  up,  in  part  due  to  the  goodwill  of 
cooperating  partners,  there  has  been  no 
substantive  discussion  on 
financing  social 
protection  from  domestic  resources  to  ensure 
ownership  and  sustainability.36  This  raises 
serious 
long-term 
sustainability of the SCT programme in Zambia. 
On  the  other  hand,  the  SCT  has  created  much 
dependence instead of the beneficiaries seeking 
employment  or  other 
income-generating 
it  discourages  some 
opportunities.  In  fact, 
recipients from seeking employment or income-
generating  opportunities. 
is  essential  to 
balance  SCT  with  initiatives  that  promote  self-
reliance  and  economic  empowerment.  To 
address 
issue  of  dependence  and 
disincentives,  it  is  essential  to  strike  a  balance 
between providing SCT for immediate relief and 
implementing  complementary  initiatives  that 
economic 
promote 

self-reliance 

concerns 

about 

and 

the 

the 

It 

9. 

CONCLUSION 

In  conclusion,  in  Zambia  the  SCT  has  been  a 
crucial initiative aimed at reducing poverty and 
improving  the  welfare  of  vulnerable  people, 
in  rural  areas.  The  government 
especially 
identified  several  ways  in  which  the  SCT  could 
improve  the  welfare  of  the  vulnerable.  These 
are: supplementing but not replacing household 
income;  increasing  the  number  of  children 
enrolled  in  and  attending  primary  education; 
increasing  the  number  of  households  having  a 
second  meal  each  day;  and  increasing  asset 
ownership among households as this would help 
income  generation.  Some  of  the  successes 
recorded in the early stages of the programme 
were  increased  school  enrolment  especially 
among  children  at  primary  school,  improved 
health,  and  supplementing  household  income. 
While  recognising  the  positive  impacts  of  the 
SCT programme especially in its initial stages, it 
is 
its  failures  and 
challenges  head  on  as  they  seem  to  outweigh 
the  successes.  Many 
inconsistencies  and 
irregularities have been noted in the operation 
of the SCT, particularly beginning around 2017. 
The advances initially made seem to have been 
reversed. Many learners have found themselves 
as carers serving their families. Child labour has 
in  most  households.  The 
become  a  norm 
challenges the SCT has faced since its inception 
selection  of 
include  administration, 
to  eligibility, 
beneficiaries, 
funding,  delayed  issuance,  a  lack  of  regular 
reviews, and corruption. From the foregoing, it 
can  be  concluded  that  in  Zambia  the  SCT  has 

imperative  to  confront 

the 
related 

issues 

34 The Daily Nation Newspaper, 2022. 
35 UNICEF Social protection budget brief: Scaling up social protection to improve lives and livelihoods for every child, 2023. 
36 UNICEF Social protection budget brief: Scaling up social protection to improve lives and livelihoods for every child, 2023. 

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     10 

 
 
 
 
 
 
 
 
 
faced many failures and challenges, which is why 
the  poverty  level  has  remained  relatively  high 
despite the SCT having been in operation for two 
decades. 

10. 

RECOMMENDATIONS 

and 

should 

other  ministries 
reconsider 

10.1 Critically reconsider the administration of 
the SCT  
The  government  ministry  in  charge  of  the 
and 
programme 
departments 
the 
administration  of  the  SCT.  The  people  serviced 
are those considered most vulnerable in society 
and  are  counted  in  millions,  while  the  people 
who provide the service are just a few, yet what 
they  consume  is  considerably  high  factoring  in 
the ratio of what the serviced people consume. 
Hence 
the 
there 
administration of SCT. 

is  a  need 

rework 

to 

10.2 End delayed issuance of the SCT 
The funds for the SCT are budgeted for annually 
and the beneficiaries are paid bi-monthly. There 
is  a  need  to  make  these  funds  available  in  a 
timely fashion.  

10.3 Regular payment reviews  
Given the economic fluctuations in Zambia, it is 
crucial  for  the  government  to  regularly  review 
and adjust the amount provided through the SCT 
to  keep  pace  with  inflation  and  the  changing 
cost of living. This will help ensure that the cash 
transfers remain effective in alleviating poverty. 

10.4 Introduce a lifestyle audit  
There  is  a  need  to  introduce  a  lifestyle  audit 
among the implementers of the SCT at all levels, 
i.e.  national,  provincial,  and  district,  so  as  to 
avoid 
and 
embezzlement of funds leading to questionable 
wealth acquisition. 

corruption 

vices 

such 

as 

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     11 

 
 
 
 
 
 
 
 
 
 
 
 
REFERENCES 

Arruda, Pedro and Dubois, Laura. 2018. International Policy Centre for Inclusive Growth: A brief 
history of Zambia’s Social Cash Transfer Programme: United Nations Development Programme 
and Government of Brazil. ISSN 2358-1379 62. 

Chileshe, Chaunga. 2018. Progress and Update of the Social Cash Transfer Programme in Zambia, 
Committee on Health, Community Development and Social Services. 

Chileshe, Musonda. Effects of an Economic Empowerment Tool for Women in Zambia: A Case, 
Mwanachingwala. MA Dissertation (Development Studies), The University of Zambia, 2023. 

Chiwele, D.K. 2010. “Assessing administrative capacity and costs of cash transfer schemes in 
Zambia: Implications for rollout.” IPC-IG Country Study, No. 20. Brasília: International Policy Centre 
for Inclusive Growth. http://www.ipc-undp.org/pub/IPCCountryStudy20.pdf  Accessed 5 March 
2018. 

Crankshaw, Owen and Saladin, Jacqueline. 2019. Causes of Urbanisation and Counter-Urbanisation 
in Zambia in Urban Studies Volume 56, No 10, pp. 2005-2020. 

Habasonda, L.M. 2009. Political Economy of Cash Transfer in Zambia: A report prepared for the 
Overseas Development Institute. London: Overseas Development Institute.  
https://www.odi.org/sites/odi.org.uk/files/odi-assets/publications-opinion-files/5751.pdf 
Accessed 5 March 2018. 

PMRC Blog- The Report of the Auditor General on Social Cash Transfer in Zambia for the period 
2014 to 2017. 

Roger Lionel, Smith Gregory and Morrisey Oliver, Exchange Rate and Inflation Dynamics in Zambia, 
Policy Research Paper, World Bank Group: 2018. 

UNICEF Social protection budget brief: Scaling up social protection to improve lives and livelihoods 
for every child, 2023. 

STG | Policy Papers Issue | 2024/23 | August 2024    

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