Cash Transfers and Business Survival During Covid: Evidence from Uganda
A new study examines how temporary cash transfers affected vulnerable households and businesses during the Covid-19 pandemic.
In “Cash Transfers and Business Survival During Covid: Evidence from Uganda,” Kjetil Bjorvatn, Denise Ferris, Selim Gulesci, Arne Nasgowitz, Vincent Somville, and Lore Vandewalle investigate the impacts of cash transfers to households in Uganda during the sharp economic downturn triggered by the pandemic and lockdown policies. Although many countries introduced cash transfers to support vulnerable households, little is known about how such programmes function in times of emergency, when markets are closed and mobility is restricted.
Using differences in the timing of the intervention, the authors show that temporary cash transfers improved business outcomes during the pandemic. They also document persistent, positive effects on household income, savings, and food security.
Taken together, the findings highlight the role of temporary cash transfers in supporting businesses and strengthening household resilience during a period of severe economic disruption.