Cash grant assistance has drawn the interest of academia, policymakers, and development organizations in Sub-Saharan Africa because of its impacts on the long-term economy. These kinds of humanitarian aids serve to immediately alleviate shocks, while improving economic conditions and stimulating the local economy. Cash grants are then incredible instrumental in reducing dependency on aid and addressing both short-term and long-term economic issues. This study investigates the long-term economic ripple effects of Cash Grant Assistance on various economic outcomes in Sub-Saharan Africa, using data the Carolina Population Center (CPC)/Project Transfer and World Bank. A difference-in-differences approach was applied to compare treated and control groups, with economic outcomes treated as the dependent variable and food security, health, psychological well-being, education, and female empowerment as the main explanatory variables. Descriptive statistics reveal large differences between the two groups: overall, treatment group members appear to consume more than controls. Regression analysis quantifies these impacts of CGA, each at an extremely significant positive value on all key indices. In particular, the Food Security Index raised by 0.69 and 0.70, the Health Index by 0.78 and 0.85, the Psychological Well-being Index by 0.53 to 0.75, the Education Index by 0.33 to 0.65, and the Female Empowerment Index by 0.33 to 0.53-all significant at the 5% level. This therefore gives strong evidence that Cash grant assistance strongly improve foodsecurity, health, and education in Sub-Saharan Africa. Scaling up these programs, focusing on Socioeconomically disadvantaged group, and integrating financial and educational support are therefore recommended. However, potential risks associated with cash grant programs, including inflationary pressure, dependency on aid, misallocation of resources due to governance issues, and inefficiencies in program implementation, may arise.

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Keywords

Cash Grant Assistance, Economic Ripple Effects, Sub-Saharan Africa, Quasi-Experimental Design, Difference in-Difference