Closing the Gap

... A New Economic Strategy for Inclusive Economic Development for All People Living in Zambia

By Francis Maingaila

Lusaka, Zambia – The Civil Society for Poverty Reduction (CSPR), in collaboration with the Economics Association of Zambia (EAZ) and the Ministry of Finance, has called for a reassessment of Zambia’s economic policies to ensure they address poverty and inequality through inclusivity and equity.

This initiative is supported by the Norwegian Church Aid, which has provided crucial backing to strengthen efforts aimed at fostering equitable and inclusive economic policies.

Acting Permanent Secretary for Planning and Administration at the Ministry of Finance, Prudence Kaoma, said during a public discussion themed “Is Zambia’s Economic Development Model Truly Inclusive?” held at Radisson Blu that Zambia should urgently tackle poverty and inequality.

She noted that 60% of Zambians live below the national poverty line, with rural areas disproportionately affected at 78% compared to 31.2% in urban areas.

“These statistics are not mere figures; they reflect the daily struggles of millions of Zambians,” Kaoma said.

She further pointed to rising food inflation, at 16.5%, and the escalating cost of living as factors exacerbating socioeconomic disparities.

Kaoma stressed that inclusivity is essential for sustainable development and called for actionable solutions to ensure equitable growth.

“Inclusivity is not just a moral imperative; it is a prerequisite for sustainable development,” she remarked.

She reaffirmed the government’s commitment to fostering equity and urged stakeholders to collaborate in redefining Zambia’s development trajectory.

“Together, we can build a future where every Zambian, regardless of their background or location, can share in the benefits of our nation’s progress,” she said.

The forum underscored the need for collective efforts to ensure Zambia’s economic growth benefits all citizens.

The Economics Association of Zambia (EAZ) President, Dr. Oswald Mungule, has called for concerted efforts to address Zambia’s persistent poverty challenges through inclusive economic policies.

Speaking at a public forum organized in partnership with the Civil Society for Poverty Reduction (CSPR) and other stakeholders, Dr. Mungule highlighted the importance of fostering inclusive growth as a cornerstone of the nation’s development agenda.

The forum, themed "Inclusive Growth - Is This Achievable?" brought together representatives from the Ministry of Finance and National Planning, ZIPAR, academia, civil society, and the private sector to discuss strategies for reducing poverty and inequality in Zambia.

Dr. Mungule emphasized the relevance of the discussions to Zambia’s 8th National Development Plan (8NDP), which prioritizes inclusive growth and poverty reduction.

He outlined key areas for action, including investment in healthcare, education, and rural infrastructure to reduce poverty, economic diversification beyond mining to strengthen agriculture, tourism, and manufacturing, and private sector engagement through public-private partnerships.

He also stressed the importance of prioritizing the economic inclusion of women and youth.

Dr. Mungule reaffirmed EAZ’s commitment to providing evidence-based policy recommendations and fostering impactful solutions.

“Together, we can make significant strides toward a Zambia where every citizen has access to opportunities and resources to lead a dignified life,” he said.

The forum aimed to generate actionable strategies for ensuring inclusive growth and reducing inequality across the nation.

The Civil Society for Poverty Reduction (CSPR) has identified limited economic growth, inadequate funding for social sectors, maize-centric agricultural policies, and supply-side constraints for small-scale farmers as the leading causes of poverty in Zambia.

According to the 2022 Living Conditions Monitoring Survey (LCMS), the country’s average poverty rate stands at 60%, with extreme poverty affecting 40.8% of the population.

CSPR Executive Director Isabel Mukelebai said Zambia continues to struggle with achieving pro-poor growth, which is essential for including marginalized groups in economic participation.

“Lower economic growth achievements in real terms have significantly hindered poverty reduction,” Mukelebai said.

“Achieving Zambia’s poverty reduction target of 40% by 2026, as outlined in the Eighth National Development Plan (8NDP), requires sustained political will and leadership.”

Mukelebai emphasized the need for the government to reassess its economic growth model and evaluate its alignment with human development indicators.

She warned that key targets within the 8NDP may remain unmet due to financing challenges, limited human capital in social sectors like education, water and sanitation (WASH), and social protection.

“Agricultural investments remain heavily maize-centric at the policy level, and rural markets are still unviable,” Mukelebai said.

“Small-scale farmers, who make up the majority of the poor, face significant supply-side constraints.”

To address these challenges, CSPR has commissioned a study led by economist Trevor Hambayi to analyze the impact of Zambia’s economic model on human development.

Mukelebai said the findings will guide policy recommendations to stimulate inclusive growth and pro-poor development.

“This highly analytical policy paper aims to spur informed debate at national and subnational levels and serve as a tool for civil society organizations to actively engage in the economic reform agenda,” she stated.

Mukelebai also commended Zambia’s recent partnership with the UK government, which pledged £4 million to enhance social protection by 2025.

She urged the government to leverage such partnerships and Zambia’s membership in the Global Alliance Against Hunger and Poverty to attract innovative financing and address the country’s poverty crisis.

“Partnerships like these are critical to resolving current financing challenges that threaten the achievement of key 8NDP milestones,” Mukelebai added.

CSPR remains optimistic about the possibility of a poverty-free Zambia. However, Mukelebai emphasized that achieving this ambitious goal hinges on strong political will and prioritizing poverty reduction.

“At the center of this dream is leadership that ranks poverty reduction first for Zambia,” Mukelebai concluded.

The 8NDP outlines Zambia’s vision for inclusive development, with a focus on reducing poverty and improving human development indicators.

However, the challenges of financing, policy gaps, and limited rural economic viability continue to hinder progress.

CSPR’s efforts to promote informed dialogue and advocate for pro-poor policies are part of a broader strategy to address these issues and create a more equitable future for all Zambians.