Poverty in South Africa Risenga Maluleke DDG: Statistical Collections & Outreach Statistics South Africa 23 September2014
Presentation Overview Background information about poverty in SA The Poverty Line Poverty 2006 and beyond Other facets of poverty Multi-dimensional poverty Poorest municipalities
Poverty and inequality in South Africa Major concern for all (Government, Civil Society Ogarnisations (CSOs), Business, etc.) Medium Term Strategic Framework (MTSF) Halve poverty and unemployment by 2014 National Development Plan Reduce the proportion of the population living below a lower bound poverty line (R443 in 2011 prices) to 0% by 2030 Reduce inequality (gini-coefficient) from 0,7 to 0,6 by 2030 Millenuim Development Goals (MDGs) Halve poverty and hunger by 2015
Importance of statistics in the fight against poverty and inequality But we do at last have results with which we can work, the numbers that count for the nation. It will take time to absorb the full detail of this intricate picture of our complex society but the broad outlines should act as the clarion call to re-dedicate ourselves in every sector of the society, to the historic mission of a generation charged with transforming South African s society in order to eradicate the poverty and imbalances that derive from our past. Nelson Mandela - during the handover of Census 96 results to President Mandela 1998.
R321 Food poverty line The Food Poverty Line Provides an unambiguous threshold of absolute deprivation. Represents the amount of money required to purchase the minimum required daily energy intake Approach used in Philippines, Zimbabwe and Myanmar
R443 Lower-bound poverty line The Lower-bound Poverty Line Provides an austere threshold below which one has to choose between food and important non-food items R321 Food poverty line Practiced in Indonesia, Ecuador and Sri Lanka
R620 Upper-bound poverty line R443 Lower-bound poverty line The Upper-bound Poverty Line Provides an unambiguous threshold of relative deprivation below which people cannot afford the minimum desired lifestyle by most South Africans Practiced in Peru, Kenya and Turkey R321 Food poverty line
If South Africa was a community of 100 individuals...
Food poverty line 2006 12,6 million In 2006, 27 individuals were poor, living in extreme poverty, below the food poverty line (R210)
Food poverty line 2011 06 10,2 million In 2011, this dropped to 20 individuals (R321)
Upper-bound poverty line 2006 27,1 million In 2006, 57 individuals were poor, living below the upperbound poverty line (R431)
Upper-bound poverty line 2011 06 23 million This decreased to 46 individuals in 2011 (R620)
Population of South Africa living below the food poverty line 2006-2011
Social Grant and Self Declared Hunger Numbers in millions
Social Grant and Self Declared Hunger Numbers in millions
Social Grant and Self Declared Hunger Social Grant beneficiaries have increased from 2.6m in 1997 to 16.6m in 2012 Numbers in millions 13.4m in 2002 to 6.6m in 2011 The number of persons who reported to experience hunger has gone down by 6.8m from 2002 * GHS 2009 did not ask about experienced hunger
Gross Domestic Product from 2004 to 2012
Real Final Consumption Expenditure
Inflation from 2004 to 2012
% Population 100 90 80 70 National Poverty Lines (Headcount) by Province 60 50 40 30 20 10 0 LPL UPL WC EC NC FS KZN NW GP MP LP 2006 2009 2011
Poverty share of households by province in 2011 KwaZulu-Natal 23% Mpumalanga 8% Gauteng 13% Northern Cape 2% North West 8% Eastern Cape 18% Free State 6% Limpopo 16% Western Cape 6%
Poverty incidence by sex of household head (upper bound poverty line) 60 50 55.7% 54.6% 40 43.9% 30 33.6% 34.8% 20 25.7% 10 0 Female Male 2006 2009 2011
Poverty incidence by population group of household head (upper bound poverty line) 60 50 51.2% 52.1% 40 30 40.3% 20 10 0.5%.9%.4% 2006 2009 2011 Black African Coloured Indian/Asian White
Poverty incidence by education level of household head (upper bound poverty line) 90 80 70 60 50 76.7% 78.1% 65.% 40 30 20 10 0 2.5% 5.6% 2.8% 2006 2009 2011 None Some primary Primary Some secondary Matric Higher
No income Education level zero income, age & level of education 80% 70% 60% No schooling 50% 40% 30% 20% 10% 20 30 40 50 60 70 80+ Age Grade 11 Grade 12 Diploma Bachelors degree
Inequality between 2006 and 2011 Gini coefficient 0 = Perfect Income Equality (Each person has equal share) 1 = Perfect Income Inequality (All income goes to one person) Gini coefficient (income per capita including salaries, wages and social grants) Gini coefficient (expenditure per capita excluding taxes) 0.72 0.70 0.69 2006 2009 2011 0.67 0.65 0.65
Multidimensional Poverty
Lack of income Lack of employment Lack of basic services No ownership of assets What is poverty? Social exclusion Inability to take part in decision making Inability to afford basic needs Poverty is multifaceted and can be defined in various main ways: Objective Relative Subjective (self-perceived)
he four dimensions of poverty (SAMPI) Health Education Deprivation cut-offs Living standards Economic activity Child mortality (death of child under 5) Years of schooling (completed 5 years of schooling) School attendance (school-aged child out of school) Lighting (no electricity) Heating (no electricity) Cooking (no electricity) Water Sanitation Dwelling Assets (no piped water) (no flush toilet) (informal/traditional/caravan/tent) (no radio/tv/phone/car) Unemployment (adults unemployed)
Skills development challenges in South Africa Low-skilled Total 55-64 45-54 35-44 25-34 15-24 Semi-skilled Total 55-64 45-54 35-44 25-34 15-24 Skilled Total 55-64 45-54 35-44 25-34 15-24 43,0 34,1 52,6 42,9 47,6 40,2 39,8 31,5 37,8 30,9 57,6 35,5 41,9 48,0 36,0 37,8 40,0 40,2 43,8 47,2 44,7 53,8 33,2 54,5 15,1 17,9 11,3 19,3 12,3 19,6 16,4 21,4 17,5 15,2 9,3 10,0 African 1994 2014 Change 0,0 10,0 20,0 30,0 40,0 50,0 60,0 70,0-8,9-9,7-7,4-8,3-6,9-22,1 6,0 1,8 0,2 3,4 9,1 21,3 2,9 8,0 7,3 5,0-2,3 0,7 Low-skilled Total 55-64 45-54 35-44 25-34 15-24 Semi-skilled Total 55-64 45-54 35-44 25-34 15-24 Skilled Total 55-64 45-54 35-44 25-34 15-24 % 34,9 29,3 46,3 32,1 36,5 32,6 31,4 27,6 32,2 23,0 41,0 41,2 53,5 48,2 47,7 41,3 51,8 41,8 55,4 47,5 54,0 55,3 52,4 50,1 11,6 22,5 6,0 26,6 11,7 25,5 13,3 24,9 13,8 21,7 6,6 8,8 Coloured 1994 2014 Change 0,0 10,0 20,0 30,0 40,0 50,0 60,0 70,0-5,6-14,3-3,9-3,7-9,2 0,2-5,2-6,3-9,9-7,9 1,3-2,4 10,9 20,6 13,9 11,6 7,9 2,2 Low-skilled Total 55-64 45-54 35-44 25-34 15-24 Semi-skilled Total 55-64 45-54 35-44 25-34 15-24 Skilled Total 55-64 45-54 35-44 25-34 15-24 % 6,7 6,6 7,0 1,4 8,6 11,6 7,0 4,7 5,3 5,4 7,1 11,2 68,0 42,7 67,3 42,4 59,4 37,2 66,8 43,7 68,6 40,3 75,8 61,3 25,2 50,7 25,7 56,2 31,9 51,2 26,1 51,7 26,2 54,4 17,1 27,5 Indian 1994 2014 Change 0,0 10,0 20,0 30,0 40,0 50,0 60,0 70,0-0,1-5,6 3,0-2,3 0,1 4,0-25,4-24,9-22,2-23,2-28,3-14,5 25,5 30,6 19,3 25,5 28,2 10,4 Low-skilled Total 55-64 45-54 35-44 25-34 15-24 Semi-skilled Total 55-64 45-54 35-44 25-34 15-24 Skilled Total 55-64 45-54 35-44 25-34 15-24 % 2,9 2,7 4,3 2,3 3,5 3,1 2,0 2,3 2,6 1,5 3,3 6,7 54,9 35,8 53,6 32,5 46,7 34,8 50,4 29,8 56,8 34,7 72,2 64,5 42,2 61,5 42,1 65,2 49,9 62,0 47,7 67,9 40,6 63,8 24,5 28,8 White 1994 2014 Change 0,0 10,0 20,0 30,0 40,0 50,0 60,0 70,0-0,1-2,0-0,3 0,3-1,1 3,4-19,1-21,1-11,9-20,6-22,1-7,7 19,3 23,1 12,2 20,3 23,2 4,3
Reasons provided why 7-18 years olds are not attending school, 2012 30.0 25.0 20.0 26.1 22.2 22% of Females stated family commitments against less 1% for Males 15.0 10.0 14.2 9.9 8.6 8.5 5.0 0.0 4.8 4.7 0.9
Mapping the poverty headcount by municipality (SAMPI) 2001 2001 2011
Headcount: the poorest municipalities in South Africa Census 2001 and 2011 (SAMPI)
Where are the poorest municipalities located? (SAMPI)
Headcount 3 1 10 KZN 9 2 4 6 7 EC 8 5 Where are the poorest municipalities located? Census 2011 (SAMPI)
Inkomu!