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Paper short abstract:

An increasing number of governments and private sector organizations are switching to innovative mechanisms to deliver cash transfers. This paper will explore the adoption of delivery mechanisms of cash transfers and link them to the cost of cash transfers for organizations in Tanzania and Uganda.

Paper long abstract:

An increasing number of governments and private sector organizations are switching to innovative mechanisms for the delivery cash transfer payments. Organizations do so in order to reduce costs and leakage, as well as promoting financial inclusion of the poor. This paper will explore the adoption of various delivery mechanisms of cash transfers and link them to the cost of cash transfers for organizations in Tanzania and Uganda. The paper argues the deployment of technology in the delivery of cash transfers reduces the average cost of delivery especially with a sizable number of recipients. The paper is based on administrative cost data. Cost-efficiency analysis will be done after programme operations (ex-post), to review how much was actually spent. Cost-efficiency analysis will pose the following question: How much did it cost to run the programme? It permits accountability for spending, without needing to take into account what result was achieved for the money. Whilst reviewing cash transfer programmes the cost will be divided into two: the value of the transfer disbursed to beneficiaries, and the amount spent in delivering that transfer to them. This means that we can say, 'This programme spent [$X] to deliver [$Y] in cash to beneficiaries'.