Trade, employment and poverty reduction – an evidence-based overview

This is a summary of an evaluation of how the Zambian NGO Musika has impacted small-scale farmers in the country.
Musika’s ultimate goal is to reduce poverty and create wealth in rural Zambia by stimulating relationships between the businesses and smallholder farmers. Sida was a major funder of Musika between 2013 and 2023.

Zambia’s Social Cash Transfer (SCT) programme, which is a key part of the UN Joint Programme on Social Protection in Zambia (UNJPSP II), aims to reduce multidimensional poverty. It focus in particular on the most marginalised women, children as well as people with disabilities.

Main evaluation method: Quantitative analysis of existing secondary data.

Positives: We find positive effect on food security and dietary diversity among poor households, especially in rural areas, as well as on children’s health. Some gains were also noted in small business engagement among urban recipients, and rural households have started more home gardening activities.

Potential shortcomings: Negative effects were found on breastfeeding and vitamin A uptake due to misconceptions about nutrition and SCT eligibility. We also found negative effects on asset accumulation. Targeting was weak in urban areas. While reaching 33% of Zambia’s population, SCT has not been sufficient to counteract the rise in national poverty. However, the SCT were only equivalent to the purchasing power of USD 0.25 per day per household. Irregular payments and low transfer amounts remain key challenges, despite strong government commitment.