Conclusion and policy recommendations

While growth is unarguably an important factor for poverty reduction, empirical evidence equally suggests that the extent to which economic growth effectively translates into poverty reduction is highly contingent on how the additional income at each level of growth is distributed as well as on the initial levels of inequalities within and across sectors. Accordingly, data for countries in Africa highlights different poverty outcomes for similar levels of growth generally in line with income levels. For instance, the poverty rate in Zambia increased by about four percentage points in the 2010-2019 decade while with a similar growth rate, Sierra Leone managed to significantly reduce its poverty rates by 28.9 percentage points in the same decade. Similarly in Malawi, the poverty rate marginally declined by only about 0.8 percentage points in the 2010-2019 decade while growing at an average of about 4 per cent. Yet with a similar growth rate in the decade, the $2.15 poverty rate dropped by 45 percentage points in Mali and 9 per cent in Botswana. Overall, Malawi remains one of the poorest countries in Africa despite insignificant diversions to the average growth rates in Africa. It is the third poorest country in Africa with about 70 per cent of its population living below the $2.15 international poverty line after Madagascar and Somalia whose poverty rates currently stand at about 81 per cent and 71 per cent respectively.

Sustainable Development Goals:

No Poverty

Gender Equality

Reduced Inequalities