By John Chola
The Jesuit Centre for Theological Reflection (JCTR) has recorded a reduction in the Basic Needs and Nutrition Basket (BNNB) for September 2024, offering a brief respite amidst Zambia’s ongoing economic challenges.
The BNNB for Lusaka decreased by K191.29, settling at K10,478.04 for the month, primarily driven by a decline in the prices of key commodities such as Kapenta, vegetables, and charcoal.
According to JCTR’s analysis, the price of Kapenta dropped from K407.51 per kg in August to K336.84 per kg in September.
Similarly, the cost of a 40kg bag of vegetables fell from K641.26 to K546.16, while charcoal prices declined from K402.67 to K376.67.
A report issued by Lukwesa Musonda, JCTR’s Social and Economic Development Programme Officer, says despite this decrease, the BNNB remains significantly higher than in September 2023, showing a year-on-year increase of K1,331.98.
“This rise has continued to strain households, whose incomes remain stagnant amid suppressed economic activities driven by the ongoing energy crisis,” Ms Musonda said.
A Call for inclusive socio-economic policies
JCTR has emphasized that the rising cost of living, driven by low food production due to drought conditions and a broader economic slowdown, requires urgent attention from policymakers.
The centre has outlined several recommendations to mitigate these challenges and support Zambia’s most vulnerable populations:
Social Protection Programs: JCTR recommends that the Ministries of Community Development and Social Services, supported by the Ministry of Finance and Cooperating Partners, reintroduce or scale up price shock-responsive social protection packages, particularly in urban areas.
JCTR calls for strengthening ofCooperatives adding that enhancing the role of cooperatives in food production and manufacturing, especially in regions with favourable rainfall, is key to boosting food security. The Ministry of SMEs, Agriculture, and Local Government is encouraged to take the lead in these efforts.
Timely Delivery of Farming Inputs: The Ministries of Agriculture and Transport and Logistics must prioritize the timely distribution of farming inputs to ensure a successful 2024/25 farming season.
Minimum Wage Review: To address the widening gap between incomes and the rising cost of living, JCTR suggests a revision of the minimum wage by the Ministry of Labour and Social Security.
Tax Incentives for Local Businesses: The Ministry of Finance, in collaboration with relevant agencies, is urged to review the tax system and introduce incentives for local businesses in key sectors like agriculture and manufacturing, which could lower production costs, boost job creation, and support economic growth.
Inflation Management: Stabilizing inflation through interest rate adjustments and liquidity management is critical for the government, working with the Bank of Zambia, to address inflationary pressures and curb the depreciation of the Kwacha.
The Way Forward
Ms Lukwesa states that as Zambia continues to grapple with high living costs and economic uncertainties, JCTR stresses that the government must implement inclusive solutions to ensure that all Zambians are able to live dignified lives.
While the recent reduction in the BNNB is welcome, according to JCTR, more decisive action is needed to address the broader economic challenges that are affecting the livelihoods of many households across the country.
The report is produced with support from Kirkens Nødhjelp and DanChurchAid alliance (JCP Zambia).
