An unconditional cash transfer combined with gender equality and financial inclusion interventions has strengthened livelihoods, reduced child labour, and promoted gender equality in cocoa-growing communities in Ghana.
Cash transfers are a widely used poverty reduction intervention. They are also one of the most promising ways to address child labour globally, according to the International Labour Organisation. In recent years, they have gained attention in agricultural supply chains, including cocoa, with an increasing number of private companies implementing these programmes to address child labour, with promising results.
Building on these experiences and to better understand the effects of different design features, ICI, in partnership with Nestlé, piloted a cash transfer programme across cocoa-growing communities in Ghana in 2023. The study explored whether cash transfers have different impacts when paid directly to women, and how the impact changes when cash is combined with complementary interventions: training on gender equality (delivered through the Gender Action Learning System – GALS) and groups to promote financial inclusion (Village Savings and Loan Associations – VSLA).
Strengthened livelihoods
The cash transfer enabled households to diversify their livelihoods, start new income-generating activities, and acquire assets such as livestock, equipment, and farmland. When cash was combined with GALS and VSLA, the positive effects of cash were stronger, as these programmes helped households improve savings habits, financial planning, and goal setting.
I never thought of starting something on my own. But after GALS, I realised I could. I started selling gari and fish, and now I’m able to contribute more to the household.
Female cash recipient who participated in GALS and VSLA
Promoted gender equality
When women received the cash, participated in VSLA, and received GALS training, they gained greater decision-making power, financial independence, and social status within their households and communities. GALS further supported joint decision-making within households, increased women’s control over household finances, and promoted financial planning and goal setting.
I’m able to contribute more to the things in our household than before. In fact, I can do the things men can do because I received the money. This has reduced my financial dependence on him, and my respect in the household has improved.
Female cash recipient
Reduced child labour
Cash transfers led to a 13% reduction in hazardous child labour among recipient households. This effect was even greater when the cash was complemented with GALS training (19%) or VSLA participation (16%). Whether the cash was given to women or to men did not affect the outcome.
Unintended consequences
While cash transfers reduced overall hazardous child labour, not all children benefited to the same extent. The positive impact was primarily driven by secondary school-aged children and by boys, while girls’ participation in labour even increased slightly.
In addition, some households that invested the transfer into farming or business activities experienced an increase in child labour, demonstrating that productive use of cash may increase labour demand, which can fall on children if not properly managed.
These findings highlight the importance of careful programme design and the need to integrate measures that prevent unintended consequences. This could involve integrating a child protection component into the GALS or VLSA programmes, conducting parallel awareness-raising activities on child labour, or coaching households to better manage labour needs when investing in new income-generating activities.
A promising approach – with lessons for scale-up
Overall, the findings show that cash transfers combined with GALS training and VSLA participation can strengthen livelihoods, reduce child labour, and promote gender equality in cocoa-growing communities. They therefore represent a promising approach for programmes aiming to tackle child labour and improve farmer livelihoods. However, as this model is scaled up, it is crucial to integrate measures that prevent unintended consequences, such as increased workloads for children when households expand their economic activities.