How the universal pension scheme shapes poverty outcomes in Zanzibar: Insights from the ZANMOD microsimulation model

Issa Hemed and Ramadhan M. Ramadhan

No wp-2026-59, WIDER Working Paper Series from World Institute for Development Economic Research (UNU-WIDER)

Abstract: This study examines the effectiveness of the Zanzibar Universal Pension Scheme using the Zanzibar tax-benefit microsimulation model ZANMOD and data from the 2019/2020 Household Budget Survey across baseline, historical, and reform scenarios. It shows that the scheme plays an important role in reducing poverty and the depth of deprivation among older adults, with its impact strengthened following the increase in benefit levels in 2023. The scheme also contributes to reducing inequality although the effect is small, reflecting the small size of the elderly population.

Date: 2026
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