Impacts of the Child Grant Programme (CGP) on the Local Economy in Zambia

In this research brief, local economy-wide impact evaluation (LEWIE) simulation methods are used to assess the likely impacts of cash transfers on the local economy. When the Child Grant Programme (CGP) gives money to beneficiary households, they spend it to buy goods and services. As this cash circulates within wards and districts it also creates benefits for non-recipient households that can provide the goods and services purchased by beneficiary households.

The Zambia Child Grant Programme (CGP), whose goal is to reduce extreme poverty and the intergenerational transfer of poverty, forms part of the Government of Zambia’s flagship social protection cash transfer programme. Implemented in 2010 by the Ministry of Community Development, Mother and Child Health (MCDMCH), the programme currently reaches 20 000 ultra-poor households with children under the age of 5 in three districts (Shangombo, Kalabo and Kaputa).