Government Rolls Out Price Shock Cash Transfers to Mitigate Economic Challenges
The Minister of Community Development and Social Services, Hon. Doreen Sefuke Mwamba, M.P, has announced a strategic intervention by the government of the Republic of Zambia to address the adverse effects of global challenges such as climate change, rising fuel and energy costs on vulnerable households.
Under the leadership of His Excellency, President Hakainde Hichilema, the government is steadfast in its commitment to reducing poverty, especially among the extreme poor populations in the country.
The Minister highlighted the implementation of various social protection programs aimed at improving living standards and empowering citizens.
Challenges such as climate change and international market instability have led to price shocks, threatening the consumption and food security of the poor and vulnerable households in Zambia.
To counteract these challenges, the government is launching a Price Shock Intervention aimed at mitigating the social and economic impacts that could undermine the progress made at both household and national levels.
The intervention will focus on urban and peri-urban areas where households have been significantly impacted by the sudden increase in the cost of essential goods and services.
Social cash transfers have been identified as a crucial platform to smooth consumption and ensure access to basic social provisions for poor and vulnerable households.
With support from the World Bank and other cooperating partners, the Ministry of Community Development and Social Services will prioritize the provision of cash transfers.
This proactive approach has proven effective in providing immediate relief during times of crisis. The intervention will target households already on the regular social cash transfer program, specifically those with severely disabled members, chronically ill members on palliative care, child-headed households, households with an elderly member, and female-headed households.
The Price Shock Cash Transfer Intervention will be implemented for a six-month period, starting from the November/December 2023 payment cycle through to the March/April 2024 payment cycle.
Eligible households in 17 identified districts, including Lusaka, Ndola, Kitwe, Kasama, and others, will receive an additional K200 per month per household.
Payments will be disbursed in two tranches of three months each, amounting to K600 for every eligible household. The intervention is expected to yield several outcomes, including enhanced human capital development, a significant contribution to stimulating local economies, a reduction in streetism, and enhanced social protection systems.
The Minister emphasized that all social cash transfers are non-contributory programs, and the government has a zero-tolerance policy towards sexual exploitation and abuse, fraud, bribery, and corruption.
Beneficiaries are encouraged to report any abuse using the existing Social Cash Transfer Program Grievance Redress Mechanism.
In conclusion, Minister Mwamba urged beneficiaries to use the funds received prudently and thanked the citizens for their understanding and cooperation during these challenging times.
