Poverty levels still high – Economist

HIGH poverty levels can be tackled by implementing the right economic programs that can increase the income base for citizens, says Economist Trevor Hambayi.

Mr. Hambayi has since called for increased income generating programs that would help transfer more income to people to alleviate poverty.

This, he said, could drive the Gross Domestic Product (GDP) that was above 6 percent in growth, to tackle the high cost of living that the country was experiencing and also increase disposable income of citizens at household level.

He told The Scoop in an interview that he observed a continued increase in the cost of living for the past three years adding that the economy had continued to underperform, a situation he said was pushing the cost of living.

He said that the poverty levels had increased from 56 percent to 60 percent post-COVID, as verified by the United Nations and the World Bank.

He explained that in 2024, the Government was expected to be looking into areas that would speak to the direct needs of the Zambian people rather than the general macroeconomic indicators that it had been focusing on, such as the single digit inflation rate and the stability in the exchange rate.

He explained that the less-privileged in the country were most directly affected through increased poverty levels as the cost of living was becoming unbearable.

“Looking at the country’s budget, it is evident that we are spending substantially more resources towards supporting the less-privileged in society through an increase in Constituency Development Funds (CDF), social spending by the Government through bursary allocation, and social cash transfer,” he observed.

He further said that it was important to move the large number of people living in poverty to a level where they could substantially sustain their livelihoods to a positive place.