The Civil Society for Poverty Reduction (CSPR) has commended government for responding to the economic shocks by implementing temporary practical and strategic expansions of the Social Cash Transfer (SCT) program through the Ministry of Community Development and Social Services.
Ms TembaTemba says while the traditional SCT program primarily targets extremely poor and vulnerable rural populations, this intervention will provide a cash transfer of K200 per month to targeted households in 21 districts over a 6-month period.
"This response is timely considering that in the year 2023, January to December, the Zambian Kwacha faced significant pressure, depreciating by 30percent against the US dollar. According to ZAMSTATs Annual inflation for December 2023 rose to 13.1percent, up from 12.9 percent recorded in the same year. This means that, on average prices of essential goods and services increased by 13.1 percent between this period and several factors contributed to this, including a rise in fuel costs and low forex earnings from the mining sector, which accounts for about 80percent of Zambia's forex," she said.
"CSPR notes a further increase in the cost of living, from K9,047.31 as of January 2023, to K9,157.41 in December 2023 as measured by the JCTR Basic Needs and Nutrition Basket (BNNB). The recent poverty statistics also reveals increased poverty rate of 60percent, with urban poverty increasing by 8.5 percentage points compared to a 2.2 percentage point increase in rural poverty between 2015 and 2022. This translates to an estimated over 650,000 people living in poverty. The Disaster Management and Mitigation Unit (DMMU) and the World Food Programme estimate that 2.04 million people are facing food insecurity, classified as being in a crisis or worse according to the Integrated Food Security Phase Classification (Phase 3 or above)."
She indicated that with the increased poverty rates, the country is also experiencing an outbreak of Cholera since October 2023, which has claimed lives mostly in the capital city of Lusaka with over 500 citizens admitted at the cholera centers.
"As CSPR we upload government for demonstrating its commitment to poverty alleviation but will improve the social welfare of people living below the poverty datum line. We however note that, with the rising cost of living, inflation, and unstable fuel prices, vulnerable populations will remain at risk once the intervention ends if no sustainability measures are put in place. We therefore recommend that the government explore new sustainable strategies to finance social protection programs, as heavy reliance on aid is unsustainable," she added.
"Additionally, CSPR strongly suggests increasing the SCT transfer value to a minimum of K336.73, based on the 2022 Living Conditions Monitoring Survey (LCMS) Poverty food Line. This underscores the urgent need for SCT expansion in both rural and urban areas to support vulnerable households."