Income Inequality: Trends, Drivers, and Pathways to Sustainable Development

Zambia’s Social Cash Transfer (SCT) programme, which is a key part of the UN Joint Programme on Social Protection in Zambia (UNJPSP II), aims to reduce multidimensional poverty. It focus in particular on the most marginalised women, children as well as people with disabilities.

Main evaluation method: Quantitative analysis of existing secondary data.

Positives: We find positive effect on food security and dietary diversity among poor households, especially in rural areas, as well as on children’s health. Some gains were also noted in small business engagement among urban recipients, and rural households have started more home gardening activities.

Potential shortcomings: Negative effects were found on breastfeeding and vitamin A uptake due to misconceptions about nutrition and SCT eligibility. We also found negative effects on asset accumulation. Targeting was weak in urban areas. While reaching 33% of Zambia’s population, SCT has not been sufficient to counteract the rise in national poverty. However, the SCT were only equivalent to the purchasing power of USD 0.25 per day per household. Irregular payments and low transfer amounts remain key challenges, despite strong government commitment.

Beyond the Grid Fund Zambia was created to expand affordable renewable energy for energy poor people living outside the national electricity grid. This was to be achieved by incentivising private sector companies’ to invest in off-grid energy generation, distribution and service delivery, with the goal to reach more than one million Zambians living in peri-urban and rural areas.

Positives: We find that the BGFZ had an impressive impact and outreach, reaching more than one million people. Most of them were new customers without previous access to energy products, and who lacked a good alternative. Access to basic energy services has contributed to enhanced quality of life for the costumers and their families.

Potential shortcomings: However, there is an absence of real evidence on health and education impacts, and the programs focus on productive use of the energy products has not yielded much. BGFZ has also faced challenges in effectively targeting and reaching the poorest and most underserved groups, even though the majority of its customers are people living in poverty.