The role of cash transfers in building household resilience

Almost three quarters of economically active rural populations in Africa south of the Sahara are smallholder farmers. Agriculture faces a variety of risks and uncertainties, including climate variability, and most farmers have no access to government or market-based risk management tools. Cash transfers can be a key tool to address this growing problem. Over the last 15 years, an increasing number of African governments have launched such programs as part of broader social protection efforts. Though not typically used as a risk management strategy, cash transfer programs provide a cushion against shocks, enhancing household and community level resilience or the ability to remain at a certain minimum level of income or well-being.

Photo credit: Andrew McConnell/BRACED