The Role of Cash Transfers in Community Development in Soweto South Africa

South Africa provides more than a quarter of its population with monthly cash transfers to mitigate the high level of poverty in the post-apartheid era. A body of literature has shown cash transfer impacts in nutrition, schooling, and women empowerment. Amidst the high rate of unemployment and poverty in Soweto, the government-provided cash transfers serve as the capital injection into the community. Yet the nexus between financial intervention and community development is still inadequately researched. The financial assistance was found to serve as a facilitator for community development for both beneficiaries and non-beneficiaries. This study raises the need to discuss ways to leverage cash transfers as a catalyst for the development of poor urban communities in South African townships.