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Poverty Datum Lines increase

by Trevor Makonyonga

By Trevor Makonyonga 

The Zimbabwe Statistics Agency, ZIMSTAT, has released the November poverty lines which indicate a sharp increase of 6,5% from the month of October. 

The Food Poverty Line (FPL) for one person in November 2021 was $5,424.00 and the Total Consumption Poverty Line (TCPL) for one person stood at $7,556.00 in November 2021.

According to ZIMSTAT, the food poverty line (FPL) represents the amount of money that an individual will require to afford the minimum required daily energy intake of 2 100 calories. The total consumption poverty line (TCPL) which is naturally higher than the FPL was derived using 2017 PICES data and using the lower bound poverty line method.

It was derived by computing the non-food consumption expenditures of poor households whose consumption expenditures were just equal to the FPL. The amount was added to the FPL, if an individual does not consume more than the TCPL, he or she is deemed poor. 

ZIMSTAT’s detailed update indicated that the food poverty line (FPL) as at November 2021 stood at $5,423.87. This means that the minimum needs basket cost that much per person in November 2021. This represents an increase of 6.5 percent over the October 2021 figure of $5,092.25.

Also, the Total Consumption Poverty Line (TCPL) for Zimbabwe stood at $7,555.58 per person in November 2021.

This means that an individual required that much to purchase both non food and food items as at November 2021 in order not to be deemed poor. This represents an increase of 6.1 percent compared to the October 2021 figure of $7.118.32.

The poverty datum lines vary by province as prices vary from place to place. The differences are explained by differences in average and prices in the provinces.

The quantities of commodities consumed at base year in the minimum needs basket which is consistent with the preferences of the poor individuals and households in Zimbabwe are fixed.

The variations in the value of the basket are explained by changes in average prices. The TCPL of represents the total income needed for an individual (with all their income added together) as a minimum for them not to be deemed poor.

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