"Inequality Stalls Zambia’s Progress"

 

... CRI report shows richest 10% hold over half of national income in country where the majority live below $2.15 a day, a situation leading to rising inequality and slowing per capita growth

By Francis Maingaila ♥️ 

Lusaka, Zambia24 (17-09-2025) — Zambia is grappling with one of the world’s highest levels of inequality, with wealth and income increasingly concentrated among a small elite while millions remain trapped in poverty, according to the 2025 Zambia Profile of the Commitment to Reducing Inequality (CRI) Index).

The report, presented by consultant Jo Walker at its launch in Lusaka, shows that the richest 10% of Zambians command 56% of national income, while the top 1% alone hold 35% of the country’s wealth. In contrast, the poorest 50% own only 2%.

“Zambia’s inequality is among the highest globally and in sub-Saharan Africa. It is no longer just a social concern but a direct obstacle to economic growth,” Walker said.

He explained that once the Gini Index surpasses 0.27, inequality begins to reduce per capita growth. 

“Zambia’s Gini exceeds 0.6, which means inequality is now undermining development itself,” he warned.

The report highlights that 64% of Zambians — about 12.6 million people — live below US$2.15 per day. Poverty is most severe in rural areas, which account for 80% of the poor, while urban poverty has climbed from 23% in 2015 to 32% in 2022 due to COVID-19 and economic volatility. Recent El Niño-induced droughts in 2023–24 further worsened food insecurity and energy supply, slowing overall growth.

The CRI Index also exposes weak investment in social services. Education receives 14% of the national budget, below the 20% Dakar Framework benchmark. Only 3% of children from the poorest households complete school, compared with 65% from the wealthiest families. 

Health spending stands at 10%, short of the 15% Abuja Declaration target, leaving nearly half of the population without essential care.

 Social protection is limited, reaching less than a quarter of older people and only a third of those in need.

Walker stressed that inequality intersects with gender, youth, and disability. Women remain concentrated in informal and unpaid work, while young people face high unemployment, often in precarious jobs. People with disabilities continue to be systematically excluded. 

“Inequality in Zambia is not random — it is structural and deeply rooted in how resources and opportunities are distributed,” he said.

He recommended a National Inequality Reduction Plan, stronger investment in health and education, and progressive taxation to reverse the trend.

Permanent Secretary in the Ministry of Foreign Affairs and International Cooperation, Etambuyu A. Gundersen, who officiated at the launch, described inequality as a multidimensional challenge affecting all aspects of society.

“As the saying goes, if you cannot measure it, you cannot change it. This report is important for guiding evidence-based policymaking in the fight against poverty and inequality,” Gundersen said.

She cited free education and the Constituency Development Fund (CDF) as key government-led programs designed to address inequality and promote inclusive growth.

Gundersen praised the role of civil society and faith-based organizations in complementing state efforts. 

“Civil society and the Church are not competitors to government but partners in development. We serve the same constituency — the people of Zambia,” she said.

She acknowledged the decline in international aid but said Zambia is focusing on domestic resource mobilization to build resilience. 

“While external support has reduced, our focus remains on strengthening long-term capacity through effective management of local resources,” she said.

Jonathan Lea Howarth, Country Director for Norwegian Church Aid and DanChurchAid (NCA-DCA) Zambia, also called for intensified action against inequality, climate shocks, and social protection gaps.

He revealed that only 3% of children in forest communities are enrolled in school, compared to 65% in other areas. 

“Without education, people cannot fully understand or claim their rights, despite the commitments in the National Development Plan,” Howarth said.

He warned that droughts, energy shortages, and food insecurity are deepening existing inequalities. 

“Community preparedness and sustainable natural resource management remain very rare. This worsens the inequalities exposed by climate shocks,” he added.

Howarth called for greater investment in climate-resilient infrastructure, safe water access, and stronger health and social protection systems. 

He emphasized that food insecurity is linked to rising child marriages and teenage pregnancies, disproportionately affecting girls.

He added that environmental protection cannot succeed without creating viable economic alternatives. 

“We cannot expect people to stop charcoal burning or poaching without offering sustainable livelihoods,” he argued.

Howarth said NCA-DCA’s programs on climate resilience, gender-based violence prevention, natural resource stewardship, governance transparency, and economic justice are interconnected. 

“We cannot tackle one without addressing the others. All our programs, whether taxation, transparency, or climate justice, are linked,” he said.

He underlined the organization’s zero-tolerance policy for corruption, sexual exploitation, and abuse, stressing the importance of accountability. 

"At the same time, he emphasized the central role of community empowerment," he said.

“Our aim is not to give handouts but to empower communities to take charge of their own development,” he said. 

Through conditional cash grants and stronger civil society engagement, NCA-DCA supports communities in designing their own projects and holding government accountable for service delivery and fiscal responsibility.

Howarth reaffirmed NCA-DCA’s alignment with its three global goals: saving lives, building resilience, and securing justice.

Walker concluded by warning that unless Zambia adopts decisive reforms, the country risks missing its Vision 2030 targets of reducing poverty below 20% and cutting the Gini Index to under 40. 

“Urgent action is needed now to prevent the inequality crisis from stalling Zambia’s long-term development,” he said.