Impact of COVID-19 on Household Incomes and Food Consumption – The Zambian Case

Initial projections suggested that developing countries in the global south would be severely affected due to their economic system inefficiencies. The pandemic's impact on economic livelihoods was expected to be most pronounced on temporary wage income, particularly in the informal sector, which employs over 70% of the country's population. In Zambia, the informal sector, including agriculture and trade, was expected to be hardest hit, particularly for urban households. Urban households bore the brunt of the impact, with sources of impact including price gouging, reduced customers, and reduced business income. A nationwide survey documented the impact of the pandemic on the economic livelihoods of Zambians in both rural and urban areas, tracking food consumption changes during the course of the pandemic. The Zambian government responded to the pandemic by setting up an Incident Management Structure at the Zambia National Public Health Institute in March 2020. A partial lockdown was announced on March 20, 2020, including the closure of borders for human movement but remaining open for the entry of goods and commodities deemed "essential." All learning institutions were closed, and social and religious gatherings were restricted to not more than 50 people, with the requirement of a public health permit. Non-essential workers were requested to work from home or on a rotational basis. The government also implemented social protection and monetary policies to cushion the adverse effects of COVID-19 on people's livelihoods. The Bank of Zambia approved relief of approximately USD 500 million for financial institutions, and the government approved COVID-19 emergency cash transfers (ECT) of USD 21 to USD 42 per month for 204,000 vulnerable households. By December 2020, 18,021 households in nine districts had received ECT payments, and the World Food Programme made ECT payments to 36,000 households. Despite these efforts, more than half of households reported reduced consumption of food in August-October 2020 compared to a year previous, and reported that the quality of their diets had worsened. There was no significant change in per capita per day income from March 2020 to July 2020 for both rural and urban households. The reasons for the lack of observed impact could include economic disruptions prior to and unrelated to the pandemic, as well as the fact that the first lockdowns occurred in March.