The Multiplier Project
In 2021 SPI published an initial paper to explore what can be said about the multiplier effect of government spend from cash grants. We reviewed both global and regional African literature and applied the principles to South Africa. We demonstrated a conservative multiplier of 1,5, and that this is the most effective economic stimulus that the state can provide to communities and economies that are on the periphery of the formal economy.
This includes township and rural economies. In 2022 we will be exploring the applied tracking of spending with a cash transfer pilot project in KZN, and we are working with UN international agencies to consolidate and deepen our thinking and ways of multiplying the multiplier effect to provide economic support where it is required most.