• The major challenge with implementation of social cash transfer has been that of reducing administrative costs.
• Reducing the cost through electronic platforms can help ensure that pay outs are made in a timely manner.
• Recommended threshold for administrative costs of the program is pegged at 15 percent of the total program budget.
Policy Monitoring and Research Centre (PMRC) has urged government to implement electronic payment platforms for the social cash transfer system.
Speaking in an interview with Money FM News, Organization Acting Executive Director Sydney Mwamba said electronic platforms such as mobile phone accounts or smart cards will help improve security as well as enhance accountability and transparency in the management of the funds.
Mr. Mwamba further said this can also improve accessibility and security of the program recipients which is important in reaching the most vulnerable groups in society such as the old, disabled and people in remote areas.
He stated that the major challenge with implementation of the social cash transfer has been that of reducing the administrative costs for effective execution of the program.
“The current mode of payment of social-cash transfer is channeled through the pay points which are organized in collaboration with other government institutions such as schools and health centres and this raised the cost of administering the program.”
“Therefore, reducing the administrative cost through the use of electronic platforms can help ensure that pay outs are made to the beneficiaries in a regular and timely manner, in a cost reflective way to enable scaling up this program,” Mr. Mwamba said.
He noted that the recommended threshold for administrative costs of the program is pegged at 15 percent of the total program budget.
“However, an audit report on implementation of the social cash transfer found that government spent 44 percent on total transfer cost between 2014 and 2017, which is very high and hinders the effectiveness of the program since this is a significant cost of the funds budgeted for to the program,” he observed.
Recently, Minister of Community Development and Social Services Doreen Mwamba disclosed that government has digitized the Social Cash Transfer payment system in order to enhance transparency and accountability as well as avoid leakages of funds.