A cash-transfer scheme that targets older people affected by HIV/AIDS has been launched by the Government of Zambia.

The two-year Social Safety Net Project was launched by Zambia’s Ministry of Community Development and Social Welfare in April 2004 in three agricultural areas of Kalomo district.

Funded by the German development agency GTZ, the project aims to reduce extreme poverty, hunger and starvation in the top 10% most destitute and incapacitated households – this is about 1,000 households in total.

It focuses mainly on households that are headed by older people who are caring for orphans and vulnerable children, because the breadwinners are chronically sick or have died from HIV/AIDS or other causes. The aim is to reach households excluded from labour-based schemes, such as food or cash for work or micro-credit.

Each household will receive K30,000 (approximately US$6.20) a month in cash – the average price of a 50kg bag of maize. Households may spend the money as they choose.

The scheme assumes that heads of households, most of whom will be older women, will spend most of the money on the orphans and other vulnerable children living with them.

The scheme also aims to generate information on the feasibility, costs and effects of a social cash-transfer scheme as a component of a social-protection strategy for Zambia.