Thank you for visiting our new Covid-19 Poverty Monitor. To find out more about the project, visit our blog about the project.
Areas of concern for the poorest and potential impoverishment
Market disruptions: Pandemic-induced market disruptions are widely cited as having the greatest impact. Social distancing and other containment measures have disrupted trade in local markets. Travel restrictions have prevented the entry of traders who normally purchase agricultural outputs, driving down prices, consequently reducing the supply of consumption goods and driving up the cost of staples. Border closures have disrupted cross-border markets for small businesses selling to neighbouring Zambia and Tanzania and the purchase of cheaper staples such as maize from Zambia.
“Before I stopped doing business police officers would come to the market chasing people without masks and making sure social distancing was in place. Sometimes things could get so tense that they would end up beating people. All these experiences made me stop doing business. To me, it meant there was no freedom.”
“When the border was closed, I became financially squeezed and had no choice but to use the capital from my egg business to pay for my child’s education. In Zambia, we also get some cheap stuff like soap and maize flour which we use at home. Everything went down and our well-being has been negatively affected.”
“Financial problems are coming because of preventive measures that have been put in place to reduce the spread of Covid-19. The curfew that is being followed has resulted in many businesses being closed down. Social distancing and wearing of masks force both traders and buyers to stay away from markets.”
All respondents observed increased costs of staple goods, particularly foodstuffs and transportation. Many also noted that the costs of masks, while relatively small, were preventing poorer households from accessing markets where they are required.
“Since there is a short supply of goods, prices of some goods have increased. We used to buy cooking oil at K800 (US$1.02) per litre but now the price has doubled. Even transport fares have increased.”
“Pharmacies are cashing in on the prices of masks and hand sanitisers due to demand, other vendors have also increased the prices of foodstuffs like Irish potatoes, cooking oil, meat and milk especially during this Covid-19 period.”
Reductions in income due to economic disruptions have resulted in reduced expenditure on food among many respondents, leaving some to cut out certain foods considered expensive. Some respondents report cutting out an entire meal, and a few cases say they are only eating once a day.
“I farm but normally my business supplements taking care of my family. Even farming requires one to have money to buy farm inputs. Since business is failing, I have resorted to eating substandard food like nsima (a type of cornmeal porridge) with peas and vegetables.”
“We have lost all our income. When Covid-19 started before I got sick, I was forced to stop my business of selling Irish potatoes because the borders were closed. I slowly started using the remaining capital saved on consumption, like buying relish, sugar and other things and now I have nothing.”
School closures were widely linked to an increase in school dropout rates, a rise in teenage pregnancies, child marriage, child trafficking and other protection issues. Many parents cited increased caring responsibilities for out-of-school children as impacting their wellbeing and livelihoods, particularly the stress of providing additional meals for children that normally receive school meals. Some expressed concern about being able to pay fees when schools reopen.
“A lot of children will drop out of school. Already from the previous closure of schools, a lot of girls here were pregnant and ended up in early marriages. If the schools remain closed for a long time, we expect lots more girls to drop out due to pregnancies and enter into marriages.”
“At first we encouraged them to study but it has been a long time and not any hope. The responsibility of taking care of their needs has also increased. We need to think about what they can eat in the morning since they used to get school meals and now, we cannot manage to give them breakfast. One painful thing is that their behaviour is now changing and their interest in school has deteriorated – some girls in the community have fallen pregnant because they are just idle. So really for us as parents we are struggling financially and cognitively.”
Sectors most affected by containment measures
Agriculture: Over half of the respondents rely on agriculture for a significant portion of their livelihoods. Local market disruptions, the absence of traders from other regions and border closures have significantly depressed prices for agricultural goods. A number of farmers report sitting on goods they have not been able to sell from 2020.
“2020 has been a very difficult year for me. I depend on farming and I could not sell my farm produce because the prices were just too low. This happened because of a lack of external buyers. Many traders were afraid to travel because of the Covid-19 pandemic. At the peak of the pandemic, I lacked market information. As a farmer, I am expected to go to local markets and see myself how commodities are being priced before making any decision.” – Female respondent, Mchinji
“Since the borders closed early last year, Zambians did not come to buy produce and many of us do not have money as we still have soya, groundnuts and maize in the house due to a lack of markets. At some point, we started selling at very cheap prices because the buyers were nowhere to be seen.” – Female respondent, Mchinji
Small businesses: All respondents who manage small businesses or engage in informal trade reported business closures or a loss in income due to market disruptions and the absence of customers due to Covid-19. Small businesses, including clothing sellers, street food vendors, two carpenters and a veterinary technician reported a loss in income.
“Since the pandemic started spreading in the country my business has gone down. I am a tailor. I used to make clothes and sell them at different local markets. Before Covid-19, I would make K20,000 (US$25.40) on a single market day but now the maximum I can make is K2,000 (US$2.54).” – Male respondent, Mchinji
Casual day labour: Casual day labour is a common livelihood supplement for many households in the sampled areas. It was widely observed that day labour opportunities have reduced due to economic disruptions, increased competition for jobs (as others have turned to day labour to cope with income losses) and fear of contracting the virus from workers.
“I depend on casual labour but ever since Covid-19 hit the country it has become a challenge to be hired. People [who normally employ day labourers] prefer to work on their own to save money. These are hard times.” – Female respondent, Balaka
“I see a lack of opportunity for piecemeal work as a main challenge as this is the only way some of us get money to buy a plate of maize flour. Now everyone is just saying they do not have money so we cannot get ganyu (day labour) because even these people are not going to work, and some businesses are not doing well. This is what will kill us.” – Female respondent, Balaka
“In the village, we rely on selling farm produce and casual labour to make a living. Now I am struggling with my family because Covid-19 has come with restrictions, making it hard to sell farm produce or engage in casual labour. Some people are afraid of hiring while some do not have money for casual labour as they are also experiencing Covid-19 impacts.” – Male respondent, Mchinji
Programmes in place to mitigate impoverishment due to Covid-19
No respondent identified receiving any Covid-19 relief support and key informants confirmed that there were no government or civil society measures introduced to support people with the social and economic effects of the pandemic. Four respondents reported receiving government cash transfers and one other reported previously receiving cash transfers but no longer being eligible. One district official who confirmed that there was no additional Covid-19 support to their area indicated that they were “building in a Covid-19 face” to the implementation of existing programmes to try to meet increased demand due to Covid-19.
The majority of agricultural households reported being eligible for subsidised fertilisers starting in 2019 (an election year) when the programme was expanded. This was cited as having a positive effect on agricultural yields in 2020. However, due to market disruptions, most were unable to benefit from higher yields due to depressed prices.
“In this area, there are no programmes that have started with the aim of alleviating the suffering that people are experiencing due to the Covid-19 pandemic. I only heard rumours that the government will start a financial support package to assist urban residents who are struggling to make ends meet. However, as I said, it was just a rumour. At the moment we do not have any programme that even has a component of Covid-19 support.”
“In 2020 I dedicated much of my time cultivating maize and after a bumper yield, I planned to sell some. Unfortunately, we were hit by Covid-19. I cannot take my maize to the market because I am scared of contracting the virus. There are so many restrictions that have been put in place and they are making the whole process of selling and buying at the market hectic. Right now, I am broke. I can’t buy what is needed at home and yet I have crops that can be sold.”
This project was made possible with support from Covid Collective.
Supported by the UK Foreign Commonwealth and Development Office (FCDO), the Covid Collective is based at the Institute of Development Studies (IDS). The Collective brings together the expertise of, UK and Southern-based research partner organisations and offers a rapid social science research response to inform decision-making on some of the most pressing Covid-19 related development challenges.
