An Evaluation of the Poverty Reduction Impact of the Non-Contributory Old Age Pension Programme in Lesotho: The Case of Manonyane

Abstract

In November 2004, the government of the Kingdom of Lesotho introduced a non-contributory old age pension scheme. This paper investigated the impact of the old age pension on poverty reduction among 215 beneficiaries and their families in Manonyane, Maama Constituency. Results of the analysis revealed that both the incidence and severity of poverty among the elderly declined with headcount ratios of 0.7 and 0.9 with and without the programme, respectively. Similarly, the total poverty gap was computed as M13 626 and M26 194 with and without the programme respectively. Further evidence from logistic model revealed that household size and income were statistically significant in influencing the probability of households getting out of poverty.