Impacts of the Social Cash Transfer Pilot Programme (SCTPP) on the Local Economy in Ethiopia


The Social Cash Transfer Pilot Programme (SCTPP) was launched by the Tigray Bureau of Labour and Social Affairs (BOLSA) with support from the United Nations Children’s Fund (UNICEF) in the Tigray region of Ethiopia in 2011. The goal of the SCTPP is to improve the quality of life for orphans and vulnerable children, the elderly and those with disabilities, and to enhance their access to essential services such as healthcare and education. Specific objectives include contributing to the reduction of poverty, hunger and starvation, increasing school enrolment and attendance, improving the health and nutrition of children, and generating information on the feasibility, cost-effectiveness and impact of the SCTPP.

Local economy-wide impact evaluation (LEWIE) simulation methods are used to assess the likely impacts of cash transfers on the local economy. When the Social Cash Transfer Pilot Programme (SCTPP) gives money to beneficiary households, they spend it, buying goods and services. As the 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.

This study found that each birr distributed by the Tigray SCTPP in Hintalo-Wajirat woreda generated an extra 1.52 birr via local economic linkages, for a total income multiplier of 2.52 birr. Similarly, each birr distributed in Abi-Adi woreda generated an additional 0.35 birr, for a total income multiplier of 1.35 birr.


FAO. Impacts of the Social Cash Transfer Pilot Programme (SCTPP) on the LocalEconomy in Ethiopia. Food and Agriculture Organization of the United Nations, Rome, Italy (2014) 2 pp.

Published 1 January 2014