How UK-supported cash transfer initiave drives the poor above poverty line
A project employs two major methods to distribute subsidies to poverty stricken households.
THURSDAY August 14, 2025
By Patty Magubira
The Tranquility News Reporter, Tanzania
Implementation of the Second Phase of the Productive Social Safety Net (PSSN II) has ticked most of the project’s boxes at Lemugur Village in Arusha District Council, Tanzania, the village council’s report says.
The objective of the PSSN II implemented countrywide is to improve access to income-earning opportunities, socio-economic services, and enhance and protect human capital of children from households living in extreme poverty.
The Lemugur Village Council says in its report unveiled to a development partner – Foreign, Commonwealth and Development Office (FCDO) – that the attendance of pupils from poor households has increased at schools and so is that of children aged below five years at clinics.
“The cash the PSSN II transfers has significantly increased incomes of the targeted poor households, enabling them to meet costs of their basic needs, including meals, healthcare, and clothing,” the report read by Lemugur Village Executive Officer (VEO) Magreth Paul to the FCDO officials says.
FCDO, The UK government’s arm responsible for maintaining relations with other countries and promoting the kingdom’s interests abroad, operates through the British High Commission in Dar es Salaam.
The cash the PSSN II transfers has significantly increased incomes of the targeted poor households, enabling them to meet costs of their basic necessities, including meals, healthcare, and clothing,” a report by Lemugur Village Council in Arusha District Council, Tanzania.
Members of the PSSN II stock taking delegation from the FCDO included Social Development Advisor Eluka Kibona, and senior managers Sophia Millanga and Antoinette Chisala. They were flanked by TASAF officials Emmanuel Luanzo and Ntuli Mwaipopo.
In addition to technical assistance and joint reviews, the FCDO is reported to have contributed British Pounds20 million to the PSSN II through the British High Commission.
The village council’s report says targeted beneficiaries are investing subsidies they receive in keeping livestock, poultry, and producing vegetables and soaps for commercial basis.
Teamed up into eight credit and savings groups with 115 total members, four males and 111 females, the cash transfers beneficiaries at the village have so far invested over Sh1.6 million shares in the groups.
Moreover, they have designed and implemented a project for the maintenance of a two-kilometre road heading for the village dispensary, and in so doing; they have not only beautified their health facility, but also earned incomes under the arrangement of the PSSN II that winds up end of next month.
“Members of the Village Council Committee have acquired skills in procurement process and road maintenance from the village and district council experts during the implementation of the project,” the report reads in part.
It, however, observes that many households qualified for the PSSN II being left behind, and the village dispensary lacking residential houses for health workers to provide services beyond work hours are among challenges facing the project at the village.
Empirical evidence shows most of the expectant mothers at the village deliver at night times.
Two major interventions are involved in the implementation of the project also supported by the government of Tanzania, and the World Bank ($200 million).
Cash is transferred, first in support of productive households, public works, and livelihoods; and second, for strengthening institutional capacity and integrated delivery systems.
Members of the Village Council Committee have acquired skills in procurement process and road maintenance from the village and district council experts during the implementation of the project,” Lemugur Village Council’s Report.
In the first intervention, unconditional fixed cash is transferred directly to labour incapacitated households.
Each of the children aged below 18 years and persons with disabilities in these households receives a fixed cash transfer dubbed Child Grant and Disability Grant, respectively.
Labour capacitated households, however, receive cash transfers with strings attached.
The soft conditions include requiring the households to either participate in community sessions as well as in credit and savings groups, or in labour intensive public works.
A variable human capital is transferred to households complying with conditions on health or education of their children, depending on their number, ages, and stages of education.
Community Sessions
These are meetings which village, ward, district council extension officers, and the PSSN II project facilitators use for building capacities of households to play their roles and duties effectively.
High on focus of the sessions are nutrition and early childhood development, financial literacy, savings and investment groups, and preparation of simple business plans for one-off productive grants to run small businesses.
The bimonthly sessions also give room for the household beneficiaries, on one hand, to submit their grievances or opinions through a tailor-made mechanism, and the project’s officials, on the other hand, to transfer cash and disseminate key messages.
Finally, the second intervention strengthens institutional capacity and integrated delivery system, underpinning effective delivery of benefits and servicesΩ
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The Tranquility News Reporter/Sub Editor, Tanzania
Patty Magubira is an experienced environmental and business editor whose career started at the Tanzania's state-owned newspaper - The Daily News. He is a man of perfection. Aided by his extensive training as a community forestry expert before joining Tanzania School of Journalism. Magubira had successfully held various key posts in newsrooms, giving him an unmatched connections in media fraternity. Having worked as a bureau chief in Arusha and Mwanza, he managed to build a team work, boosting sales to the highest level ever. He was then promoted to a sub-editor after completing a training in Nairobi, Kenya. His incredible experience, critical thinking and exposure are critical to the quality of any media outlet.