Zambia is experiencing structural financial distress marked by high levels of severe/food poverty, chronic poverty and impoverishment. Poverty trends are strongly linked to environmental sustainability issues, such as deteriorating fish stocks, soil fertility, drought and floods, and disaster risk. They are also underpinned with further effects such as inability to cope with health shocks, early marriages and divorces, and alcoholism. Long term urban-rural, inter-provincial and gender inequalities are exacerbated by highly contested politics with weak policy development and implementation, both of which sets of contextual factors significantly constrain state action on poverty reduction. The context is also one of macro-economic vulnerability— Zambia is still an LDC, mineral dependent, revenue-deficit and debt-distressed. The 2010s witnessed a recent period of sharp shocks to the incomes of the poor (2016 - 2019) preceded by years of systemic stressors driving a slower decline in income, savings and assets which increased the vulnerability to the recent shocks faced by households and the onset of Covid 19. In this context, policy priorities would include stabilising farm incomes, developing a stronger household asset base, focusing on resource conservation in farming and fisheries, and building a stronger and earlier policy response to disasters.