In most African countries, the human right to social security is still far from being a reality
for the majority of the population. Economic growth is very slow to trickle down to the
most vulnerable groups of the population so as to improve their standards of living. Basic
social cash transfers are increasingly recognized as an effective instrument to reduce
chronic poverty in low-income countries. A recent policy paper from the Department for
International Development of the United Kingdom states: “Unless specific measures are
taken to reach the poorest, millions will continue to die needlessly or, at the very least,
continue to suffer from inhumane living conditions …”. The Commission for Africa has
also called for social cash transfers, by 2007, to be an integral part of national Social
Protection Strategies. A conference co-hosted by the Government of Zambia and the
African Union recommended that “…social transfer programmes – including the social
pension and social transfers to vulnerable children, older persons, people with disabilities
and households – be a more utilised policy option in African countries…” and that they be
part of national social development plans, as specified in the concluding document to the
conference.
Both Senegal and Tanzania have achieved significant success in recent years to extend
social security coverage in order to reduce poverty. The National Social Protection
Strategy of Senegal, drafted in 2005, suggests the introduction of a universal minimum
pension for all elderly not covered by any social insurance pension. In Tanzania, the
National Strategy for Growth and the Reduction of Poverty includes some social cash
transfer programmes for vulnerable groups of the population.
Social cash transfers are increasingly recognized as an effective instrument in the reduction
of poverty. The objective of the present study is to model the introduction of basic social
cash transfer programmes on household welfare, poverty incidence and depth in two
African countries: Senegal and Tanzania. Based on household budget survey data, a set of
social cash transfers were modelled in terms of their impact on poverty reduction. In
addition, a rough cost estimate of the simulated transfers is provided.