Cash transfer programmes that provide financial support directly to households have been implemented in many countries as an alternative strategy to fight poverty and to strengthen social protection. Several studies have linked cash transfers to poverty reduction, increased school attendance, improved dietary variety, and positive effects on savings and investment behaviour. Unconditional cash transfer programmes (UCT), in contrast with conditional cash transfers, give households complete freedom in spending the money they receive.
In 2021, the Belgian non-profit organisation Eight launched a UCT programme in an artisanal mining zone in the province of Maniema, in the Democratic Republic of Congo (DRC). Three villages have been included since the start of the programme, where all households receive(d) monthly unconditional cash via mobile money, for two years.
IPIS has already conducted a pilot study on the socio-economic effects of UCTs in the first village to benefit from this programme. The results of this study indicated changes in several key indicators, compared to a Control village. To further substantiate the findings of the pilot study, a controlled study was set up in the second village, in which a matching methodology was applied to determine the statistical significance of the differences observed between the UCT and Control villages.
The findings show significant positive impacts in the UCT village: a marked increase in small business creation, widespread investment in housing improvements (70% of respondents), better nutrition (more meals and greater dietary variety), and increased livestock ownership. Financial resilience improved sharply, with reduced debt levels, a surge in participation in savings groups (tontines), and greater perceived ability to cope with unexpected events. In terms of health, respondents reported better overall well-being and greater ability to afford medicine. Lastly, the sense of safety and life satisfaction improved significantly, confirming an overall rise in subjective well-being.
The results of this midline assessment, demonstrating considerable change in a selected set of indicators, confirm several findings from the previous pilot study that was conducted in the same geographic area.
Cover picture: Launch of the Unconditional Cash Transfers programme. ©Eight
This study has been conducted in the framework of a project implemented by Eight world vzw and financed by the Belgian Ministry of Development Cooperation (DGD).
