Effects of Social Cash Transfer on the Livelihoods of the Beneficiaries in Kasisi Area of Chongwe District

Abstract

This study investigated the effects of the Social Cash Transfer (SCT) program on the livelihoods of beneficiaries in the Kasisi area of Chongwe District. It focused on livelihood activities, expenditure patterns, and systemic challenges. To operationalize it, a mixed methods approach was employed. The findings reveal that the SCT serves as a multi-functional economic catalyst. It is evident that subsistence maize cultivation remains the primary livelihood, the grant enables a critical transition from recycled seeds to hybrid varieties and fertilizers, effectively acting as an informal agricultural subsidy. Beyond farming, beneficiaries have diversified into asset accumulation through small livestock rearing, year-round vegetable gardening (Dimba), and micro-entrepreneurship such as the reselling system while also utilizing the funds to repair tools or re-engage in technical trades like tailoring and charcoal burning. Regarding expenditure composition, the research established that while staple food (mealie meal) is the immediate priority, significant portions of the grant are strategically allocated toward educational requirements, emergency healthcare, and village banking (Chilimba) to build lump-sum capital. However, the net impact of the grant is frequently undermined by informal debt (Kaloba) and high transaction costs, including transport to distant pay points and milling fees. These challenges are compounded by the unpredictability of disbursement schedules, the erosion of purchasing power due to inflation, and technical barriers such as biometric failures for elderly recipients with worn fingerprints. Additionally, the lack of formal communication channels and the high dependency ratios within households where a single grant often supports multiple orphans. The study concludes that while the SCT provides nutritional foundation for households and enables modest investments in productive assets, its effectiveness is constrained by logistical hurdles and a lack of formal graduation strategies. It is recommended that government should should integrate financial literacy training in the grant model to break the cycle of permanent dependency.