The impact of COVID‐19 on consumption poverty in Mozambique

Abstract

This study assesses the impact of COVID‐19 on household consumption poverty. To predict changes in income and the associated effects on poverty, we rely on existing estimated macroeconomic impacts. We assume two main impact channels: direct income/wage and employment losses. Our simulations suggest that consumption decreased by 7.1%–14.4% and that poverty increased by 4.3–9.9 percentage points in 2020. This points to a reversal of the positive poverty reduction trend observed in previous years. Poverty most certainly increased in the pre‐COVID period due to other shocks, so Mozambique finds itself in a deepening struggle against poverty.

Labour migration and food security in rural Mozambique: Do agricultural investment, asset building and local employment matter?

“…After the end of the civil war, and despite being cyclically hit by natural disasters, such as droughts and cyclones (Mondlane, 2004; World Bank, 2019a), Mozambique experienced a strong economic recovery (International Monetary Fund, 2014). Between 2001 and 2015, the economy of Mozambique grew at an average rate of about 8% annually, with the growth slowing down to below 3% in the following 6 years (World Bank, 2022a) mainly because of a reduction in public and foreign direct investment (Barletta et al, 2022). This economic contraction was exacerbated by natural disasters (Mugabe et al, 2021; World Bank, 2019b) and the military conflict in the northern region of the country (Barletta et al, 2022).…”

“…Between 2001 and 2015, the economy of Mozambique grew at an average rate of about 8% annually, with the growth slowing down to below 3% in the following 6 years (World Bank, 2022a) mainly because of a reduction in public and foreign direct investment (Barletta et al, 2022). This economic contraction was exacerbated by natural disasters (Mugabe et al, 2021; World Bank, 2019b) and the military conflict in the northern region of the country (Barletta et al, 2022). As all over the world, the COVID‐19 pandemic aggravated the nation's economic situation by negatively affecting businesses and households.…”

Inside Zambia's ‘new normal:’ COVID‐19 policy responses and implications for peri‐urban food security and livelihoods

“…For instance, Chirisa et al (2020) focus on urban experiences of COVID-19, changing relationships and consequences of social restrictions that altogether undermine coping strategies in South Africa, Kenya, Nigeria and Zimbabwe (Rukasha et al, 2021). Similar reports reveal COVID-19 impacts on informal workers (Njeri, 2020); food insecurity and unemployment (Mekonnen & Amede, 2022); on consumption poverty in Mozambique (Barletta et al, 2021); remittances and livelihoods in Burkina Faso (Tapsoba, 2021); and how the pandemic amplifies health, and urban inequalities (Okoia & Bwawa, 2020;Turok & Visagie, 2021), and food security and welfare (Nechifor et al, 2021). Meanwhile, a recent study by Chipenda (2022) reveals negative rural pandemic impacts on agriculture production, social relations and asset accumulation, but that there are opportunities alongside peasant agency in dealing with shocks.…”

Assessing Sociodemographic Factors Associated with Household Hardships during the COVID-19 Pandemic in Manhiça, Mozambique using Data Collected between April 2021 and February 2022

“…On Mar 31, 2020, the Mozambique government declared a state of emergency to slow the spread of the pandemic, followed by a gradual reopening of the economy. [18, 19] The state of emergency included the closure of schools, suspension of entertainment and sports events, limited hours of marketing, reduced public transportation occupancy, and limiting in-person presence at workplaces to one-third of the workforce. [19] These measures resulted in decreased travel and movement and limited public services and gatherings.…”