Searching for equity within the Cesta Básica:
The emerging social protection debate in
Mozambique
Lisa Kurbiel
UNICEF Mozambique
Mozambique:
• 80% live on less than
1 USD a day
• Stagnating poverty
rates
• 44% of children
stunted
• Poverty higher in
rural areas
• Lack of growth in
agricultural sector
National Strategy for
Basic Social Security
• Scale up the Food
Subsidy
Programme
• Introduce child
grants
Government attitudes & concerns:
• Fiscal constraints
• No economic benefits
• Donor dependence • No significant poverty
• Difficult to rescind
reduction
Subsidies
• Fuel subsidies - 1.5% of
GDP
• Wheat subsidies - 0.3%
of GDP
• Removal of subsidies
causes unrest
• Government
commitment to fiscal
space for social
protection
The Cesta Basica
• Subsidised basic
basket of foodstuffs
• Formal sector
workers under a
certain wage in 11
provincial capitals
• Transportation
subsidies
Cesta Basica Risks
• Costly, unsustainable
• Basket includes
inappropriate choices
of foodstuffs
• Unemployed and
informal sector
workers not included
• Proposed timeline very
short
Debate continues
The Cesta Básica fails to meet minimum
requirements as an effective and economically
sustainable social protection measure.
Given the limited fiscal space to address chronic
poverty among the most vulnerable,
particularly children, there is an urgent need to
consider alternative measures.
Thank you.