CHAPTER 5: HOUSEHOLD EXPENDITURE 5.1 Introduction Household expenditure is important in any socio-economic set up because it is associated with poverty, well-being and living standards. Households can be divided into different poverty categories based on their levels of expenditure on goods and services and, in fact, household well being can be judged on the quantity of goods and services that the household is able to access. Lastly but not the least, household expenditure is quite often used as a proxy for household income. In the UCS, data on household expenditure was collected on both food and non-food items. Data on recurrent expenditure such as food, housing, energy, social expenses etc. was collected based on what the household spent in the previous 30 days to the time of the survey. Large or expenses of a more fixed nature such as purchases of land or a house was collected based on what the household spent in the last 6 months prior to the survey round. The same was done in the second survey round, and data from the two survey rounds was summed to get an annual figure that was further converted to expenditure per household adult equivalent. The adult equivalent value used was the mean of the survey rounds one and two adult equivalents. Adult equivalent expenditure estimates can be used as a proxy measure of household income. For some analysis, households were ranked into terciles of total expenditure per adult equivalent. The resulting low expenditure tercile being the estimate of the low income group and vice versa. For other analysis purposes, the relative importance of the various expenditure items was based on their share of the total per adult equivalent expenditure. This chapter analyses expenditure shares starting from all broad categories of expenditure (food and non food items) and then goes to look at broad food categories in greater detail followed by staples, fruits and vegetables and lastly food bought and consumed away from home. 5.2 Household per adult equivalents expenditure shares Table 5 shows household per adult expenditure shares by urban area. Food dominates all other expenditure categories, with the food share of expenditures ranging from a low of 52 % to a high of 65 %. The share of food of total monthly expenditure is lowest in Lusaka followed by Kitwe in line with general income levels. It is highest in the poorer locations of Mansa and Kasama. This was more so for food prepared and consumed at home. The share of food bought and consumed away from home was highest in Mansa (60% ) and lowest in Lusaka (47 %). The share is expected to be low in Lusaka as it is more urbanized wealthier and higher in Kasama and Mansa because they are less urbanized and poorer.. The share of expenditure on housing, transport and communication, household furniture and appliances is higher in the larger and more urbanized Lusaka and Kitwe. The share of gas, charcoal, firewood, paraffin, candles and batteries is higher in Kitwe/Mansa and Kasama compared to Lusaka. 20
The share of alcoholic beverages and tobacco is slightly higher in Mansa compared to the other urban areas. Table 5. Household per adult equivalent expenditure shares by urban area (% of total monthly expenditure) Lusaka Kitwe Mansa Kasama Weighted Number of Households 268,024 78,499 9,305 20,901 Expenditure Items ----% of Total Monthly Expenditure----- Food share 51.6 54.0 56.2 64.5 Non-food share 48.4 46.0 43.8 35.5 Total % 100 % 100 % 100 % 100 % Food prepared at home 47.2 50.8 52.7 60.2 Food bought & consumed away from home 3.9 2.5 4.2 2.1 Housing (rent, electrical, water, sewage) 13.0 8.5 3.8 3.2 Gas, charcoal, firewood, paraffin, candles, batteries 5.0 6.5 6.5 7.6 Clothing and footwear 2.0 1.8 3.0 2.8 Transport and communication (telephone, cell phone, fares, fuel costs) 10.7 11.0 8.7 7.9 Education 3.5 3.9 4.3 3.0 Medical expenses.4.3.3.1 Health & beauty aids 2.5 2.6 2.9 2.3 Alcoholic beverages and tobacco 2.9 2.8 4.0 2.6 Social expenses (leisure, funeral, ceremonial, gifts) 2.5 1.9 2.6 1.7 Household furniture and appliances 1.7 2.5 1.3 1.0 Other large expenses (buying land or house, building materials, bicycle & motor vehicle purchases and maintenance) 1.2 1.1 1.8 1.7 All other expenses 3.5 3.9 3.9 3.8 Total % 100 % 100 % 100 % 100 % Source: CSO/MACO/FSRP Urban Consumption Survey, 2007-2008 Table 6 shows household per adult expenditure shares ranked by expenditure terciles.. The share of food expenditure in general reduces with increase in income (total expenditure). The share of food expenditure was highest in the low expenditure tercile and lowest in the high expenditure tercile in all the sampled urban areas. The expenditure share of food prepared and consumed at home followed this trend, but that of food bought and consumed away from home increased with increasing income (expenditure) in all the urban areas. 21
The expenditure share of housing, transport and communication, education and household furniture and appliances increased with income (expenditure) in all sampled urban areas. That of clothing and footwear also increased with income in all the urban areas except in Kasama where the share for the low and middle income groups was higher than that of the high income group. The share of gas, charcoal, firewood, paraffin, candles and batteries increased with decreasing income. Its expenditure share in the low expenditure tercile was about four times that in the high expenditure tercile. The expenditure share of alcoholic beverages and tobacco was higher among the high income groups in Lusaka and Kitwe. It was highest among the low income group in Mansa and the middle income group in Kasama. 22
Table 6. expenditure) Household per adult equivalent expenditure shares by location and ranked by adult equivalent expenditure terciles (% of total monthly Lusaka Kitwe Mansa Kasama Overall Low Medium High Overall Low Medium High Overall Low Medium High Overall Low Medium High Weighted Number of Households 268,024 89,168 89,666 89,190 78,499 26,102 26,171 26,226 9,304 3,104 3,080 3,120 20,901 7,013 6,953 6,935 Expenditure Items ------------------------------------- % of Total Monthly Expenditures ----------------------------------- Food share 51.6 59.3 53.6 41.9 54.0 61.6 57.4 43.0 56.2 64.2 57.6 47.1 64.5 72.9 66.6 54.3 Non-food share 48.4 40.7 46.4 58.1 46.0 38.4 42.6 57.0 43.8 35.8 42.4 52.9 35.5 27.1 33.4 45.7 Total % 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 Food prepared at home 47.2 56.4 49.6 35.5 50.8 58.9 54.7 38.9 52.7 61.6 54.3 42.3 60.2 69.3 61.6 49.8 Food bought & consumed away from home 3.9 2.9 3.5 5.4 2.5 1.4 2.8 3.4 4.2 4.2 4.1 4.4 2.1.8 2.3 3.2 Housing (rent, electrical, water, sewage) 13.0 11.1 12.9 15.0 8.5 5.5 7.4 12.6 3.8 1.1 3.6 6.8 3.2.6 2.8 6.3 Gas, charcoal, firewood, paraffin, candles, batteries 5.0 8.7 4.1 2.1 6.5 9.9 6.9 2.7 6.5 10.0 6.2 3.2 7.6 11.7 7.6 3.7 Clothing and footwear 2.0 1.3 2.1 2.7 1.8 1.2 1.6 2.4 3.0 2.3 3.2 3.5 2.8 2.8 3.0 2.5 Transport and communication (telephone, cell phone, fares, fuel costs) 10.7 6.7 11.0 14.3 11.0 8.4 9.9 14.6 8.7 3.9 8.2 14.0 7.9 3.3 7.7 12.7 Education 3.5 3.2 3.3 4.1 3.9 2.8 3.2 5.5 4.3 2.7 3.8 6.2 3.0 2.2 2.7 4.0 Medical expenses.4.3.4.5.3.4.3.4.3.2.3.4.1.1.1.1 Health & beauty aids 2.5 2.0 2.7 2.8 2.6 2.4 2.9 2.6 2.9 2.7 3.2 2.8 2.3 2.0 2.5 2.3 Alcoholic beverages and tobacco 2.9 1.9 3.0 3.7 2.8 2.8 2.3 3.3 4.0 4.4 4.0 3.8 2.6 1.9 3.5 2.5 Social expenses (leisure, funeral, ceremonial, gifts) 2.5 1.2 2.0 4.2 1.9 1.2 1.3 3.1 2.6 1.9 2.5 3.5 1.7.4 1.3 3.3 Household furniture and appliances 1.7.4 1.8 3.0 2.5 1.0 2.4 4.2 1.3.2 1.2 2.4 1.0.5.7 1.8 Other large expenses (buying land or house, building materials, bicycle & motor vehicle purchases and maintenance) 1.2.1.2 3.4 1.1.2.5 2.4 1.8.6 1.4 3.3 1.7.8.7 3.6 All other expenses 3.5 3.8 3.4 3.3 3.9 4.0 3.8 3.9 3.9 4.3 4.0 3.4 3.8 3.7 3.7 4.1 Total % 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 Source: CSO/MACO/FSRP Urban Consumption Survey, 2007-2008 23
Table 7 shows household per adult expenditure shares by location and gender of household head. Overall food expenditure shares do vary by location. However, ignoring location the total share of food expenditure is more or less the same among male and female headed households in all urban centers except Kasama where that of female headed ones is relatively higher. The share of food prepared at home and food bought and consumed away from home followed this trend. The share on housing is more or less the same among male and female headed households in Kitwe and Mansa while it is higher among female headed in Lusaka and male headed households in Kasama. The share of gas, charcoal, firewood, paraffin, candles and batteries is higher among female headed households in Kitwe, Mansa and Kasama while it is more or less the same in Lusaka. The share of alcoholic beverages and tobacco was much higher among male than female headed households in all cities especially Mansa. Female headed households had a slightly higher expenditure share of health and beauty aids in all urban areas except Mansa where it was the same. The share of expenditure on leisure, funeral, ceremonies and gifts (social expenses) was more or less the same for both male and female headed households in Lusaka, Mansa and Kasama while it was higher among male headed households in Kitwe. The share on household furniture and appliances was higher among male headed households in Kitwe and Kasama, and among female headed ones in Lusaka and the same among both types of households in Mansa. 24
Table 7. Household per adult equivalent expenditure shares by location and gender of head of household (% of total monthly expenditure) Lusaka Kitwe Mansa Kasama Overall Female Male Overall Female Male Overall Female Male Overall Female Male Weighted Number of Households 268,024 52,999 215,025 74,498 13,587 64,911 9,304 2,447 6,857 20,901 4,044 16,857 Expenditure Items ----------------------% of Total Monthly Expenditures ------------------------- Food share 47.6 46.4 48.0 50.1 51.9 49.8 54.5 55.0 54.3 60.9 64.5 59.9 Non-food share 52.4 53.6 52.0 49.9 48.1 50.2 45.5 45.0 45.7 39.1 35.5 40.1 Total % 100 100 100 100 100 100 100 100 100 100 100 100 Food prepared at home 44.1 42.7 44.5 48.0 50.2 47.6 50.7 51.2 50.5 59.3 62.2 58.6 Food bought & consumed away from home 3.5 3.7 3.5 2.1 1.7 2.2 3.8 3.7 3.9 1.6 2.3 1.4 Housing (rent, electrical, water, sewage) 12.7 13.9 12.3 9.0 8.9 9.0 4.3 4.5 4.3 3.5 2.6 3.7 Gas, charcoal, firewood, paraffin, candles, batteries 4.3 4.4 4.3 5.4 6.7 5.1 5.8 6.6 5.6 7.5 8.6 7.3 Clothing and footwear 2.0 2.1 2.0 1.8 1.4 1.8 3.0 3.0 3.0 2.7 2.4 2.8 Transport and communication (telephone, cell phone, fares, fuel costs) 10.9 10.5 11.0 11.5 12.0 11.4 9.6 10.0 9.5 7.9 6.3 8.3 Education 4.0 4.4 4.0 4.5 4.9 4.4 4.8 4.1 5.0 3.6 4.5 3.3 Medical expenses.4.8.4.4.4.4.3.3.3.1.1.1 Health & beauty aids 2.4 3.0 2.3 2.6 2.8 2.5 2.8 2.8 2.8 2.3 2.7 2.2 Alcoholic beverages and tobacco 2.6 1.5 2.9 2.4 1.4 2.5 3.8 1.7 4.5 2.6 1.3 3.0 Social expenses (leisure, funeral, ceremonial, gifts) 2.6 2.9 2.5 2.2 1.9 2.3 2.7 2.8 2.7 1.7 1.6 1.8 Household furniture and appliances 1.7 2.0 1.6 2.8 1.9 3.0 1.4 1.2 1.4 1.1.5 1.2 Other large expenses (buying land or house, building materials, bicycle & motor vehicle purchases and maintenance) 1.5.7 1.7 1.4.6 1.6 1.9 2.4 1.7 1.4.4 1.7 All other expenses 7.3 7.5 7.3 6.0 5.2 6.2 5.2 5.7 5.0 4.6 4.4 4.7 Total % 100 100 100 100 100 100 100 100 100 100 100 100 Source: CSO/MACO/FSRP Urban Consumption Survey, 2007-2008 25
Table 8 shows household per adult equivalent expenditure shares by location and ranked by category of residential neighborhood. The expenditure share of food was highest among households in low cost residential areas in all urban areas. The share for households in the medium and high cost areas was more or less the same for all urban centers except Kitwe, where the share was higher in the medium cost residential areas. The share of food prepared at home followed a similar trend. Consumption of food bought and consumed away from home seems to be quite significant among households in the low cost residential areas. Its share was second in all the sample urban areas. The share of households in the high cost residential areas was only highest in Kitwe and Mansa, and that of the medium cost in Lusaka and Kasama. Consumption of food bought eaten away from home is influenced by household members ability to go home for lunch while at work or school. The expenditure share of housing was generally higher among households in the high and medium than low cost residential neighborhoods in all sampled urban areas except for Lusaka. In share, in Lusaka, was highest in the medium cost areas while it was the same in the low and high cost residential areas. The expenditure share of gas, charcoal, firewood, paraffin, candles and batteries is much higher in low cost residential neighborhoods in all sampled urban areas. The share in the medium cost areas is relatively higher than that of the high cost ones in Kitwe, Mansa and Kasama. The difference between these 2 shares is much less in Lusaka. The expenditure share of transport and communication is highest among households in high cost residential neighborhoods. This share is much higher in the medium than low cost areas in Mansa and Kasama. The share of education is lowest in low cost residential neighborhoods and highest in the high cost ones. The share of expenditure on education is the same among households in the medium and high cost residential neighborhoods in Lusaka and Kasama. The expenditure share of alcoholic beverages and tobacco is much higher among households in the low cost residential neighborhoods. The expenditure share of social expenses was highest among households in the medium cost residential neighborhoods in Lusaka and Kasama and the high cost ones in Kitwe and Mansa. The share of expenditure on household furniture and appliances was highest among households in the high cost residential neighborhoods in Lusaka and the medium cost ones in the other sampled urban areas. 5.3 Summary 1. The expenditure share of food across the urban locations ranges from 44 to 59 %. It also decreases with higher income levels or affluence. It is highest in the sample urban area of Kasama followed by Mansa, Kitwe and lastly Lusaka. Female headship of households did not seem to be a factor into these shares. The food share is high among the low income households (low expenditure terciles) and households in the low cost residential areas. Food consumed at home generally follows the above patterns. However, the share of food bought and consumed away from home increased with increasing income. But it was also quite high in low cost residential areas. 2. The expenditure share of alcohol and tobacco was highest among the low income households, male headed households and in low cost residential areas, and particularly in Mansa. 26
Table 8.Household per adult equivalent expenditure shares over location and category of residential neighborhood (% of total monthly expenditure) Lusaka Kitwe Mansa Kasama Overall Low Medium High Overall Low Medium High Overall Low Medium High Overall Low Medium High cost cost cost Weighted Number of Households 268,023 212,713 23,181 32,129 78,498 67,448 2,378 8,672 9,305 8,009 1,030 266 20.901 15,579 1,171 4,151 Expenditure Items ----------------------% of Total Monthly Expenditures ------------------------- Food share 47.6 51.2 38.7 40.2 50.1 54.2 47.9 35.0 54.5 57.4 43.0 43.2 60.9 65.0 53.9 51.2 Non-food share 52.4 48.8 61.3 59.8 49.9 45.8 52.1 65.0 45.5 42.6 57.0 56.8 39.1 35.0 46.1 48.8 Total % 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 Food prepared at home 44.1 47.8 34.1 37.2 48.0 52.2 46.4 32.5 50.7 53.6 40.4 36.2 59.3 63.4 52.1 49.9 Food bought & consumed away from home 3.5 3.4 4.6 2.9 2.1 2.0 1.6 2.5 3.8 3.9 2.6 6.9 1.6 1.6 1.8 1.3 Housing (rent, electrical, water, sewage) 12.7 12.1 16.1 11.6 9.0 7.2 16.0 14.0 4.3 2.8 9.7 11.1 3.5 1.9 6.6 6.8 Gas, charcoal, firewood, paraffin, candles, batteries 4.3 5.4 1.3 2.0 5.4 6.6 2.4 1.4 5.8 6.7 3.1 1.3 7.5 8.8 3.8 5.3 Clothing and footwear 2.0 1.8 2.4 2.5 1.8 1.7 1.0 2.3 3.0 2.9 3.8 2.5 2.7 2.7 2.9 2.9 Trans & comm.(telephone, cell phone, fares, fuel costs) 10.9 9.8 12.7 14.1 11.5 10.6 10.1 15.6 9.6 8.2 14.3 17.7 7.9 6.2 10.1 12.4 Education 4.0 3.1 6.1 6.1 4.5 3.8 4.3 7.0 4.8 4.3 5.9 8.9 3.6 2.6 5.8 5.6 Medical expenses.4.4.5.9.4.3.2.5.3.3.5.0.1.1.2.1 Health & beauty aids 2.4 2.3 2.9 2.6 2.6 2.6 1.7 2.7 2.8 2.9 2.8 1.4 2.3 2.1 2.6 2.7 Alcoholic beverages and tobacco 2.6 2.8 2.1 2.0 2.4 2.5 1.6 2.1 3.8 4.1 2.9 1.7 2.6 2.8 2.3 2.3 Social expenses (leisure, funeral, ceremonial, gifts) 2.6 2.0 4.3 3.4 2.2 1.9 1.2 3.6 2.7 2.6 3.6 2.1 1.7 1.4 2.8 2.1 Household furniture and appliances 1.7 1.4 2.2 2.8 2.8 2.4 5.0 3.9 1.4 1.3 1.7 1.4 1.1.8 2.5 1.1 Other large expenses (buying land/house, etc) 1.5.5 2.5 4.8 1.4.9.9 3.6 1.9 1.6 3.1 2.6 1.4 1.2 1.4 2.1 All other expenses 7.3 7.2 8.1 7.0 6.0 5.3 7.8 8.3 5.2 5.0 5.9 6.1 4.6 4.3 5.0 5.4 Total % 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 Source: CSO/MACO/FSRP Urban Consumption Survey, 2007-2008 27