Effect of Cash Transfer on Food Demand in Lindi District, Tanzania

This study assessed the Cash Transfer (CT) effect on food demand and its implications on food security in Lindi District using Almost Ideal Demand Framework. The study employed the Instrumental Variable (IV) technique. To gather households’ information, a questionnaire was administered to 398 households, apportioned to two groups of beneficiaries and non-beneficiaries’ households using the ratio of 1:1. Five Focus Group Discussions (FGDs) and 14 Key Informants Interviews (KIIs) were conducted. Qualitative data were analysed using content analysis. Findings indicated that CT has effect on demand for roots and tubers, cereals and vegetables. Roots and tubers and cereals are staple foods in Lindi district, implying that, as the income rises, poor households demand for staple food together with its side dishes tend to increase. This increase on demand had no significant effect on reduction of food insecurity. Therefore, to further increase food demand and ultimately reduce food insecurity, the study recommends TASAF to increase the amount of money given to poor households and introduce food schemes that directly focused on tackling food insecurity.