Analysis of rural poverty in South Africa since 1994

Abstract

Considerable progress has been made globally with regard to the poverty question. The greatest reduction in poverty has been in China where millions have been moved out of poverty and this has been due to China’s impressive economic growth. However, extreme poverty has grown in Sub-Saharan Africa, and it is estimated that over half of those living in extreme poverty live in this region. The main reason for this is the population growth rate of this area which has surpassed the growth in Gross Domestic Product. This pattern is likely to continue into the future especially when the damaging economic effects of the lockdowns following the COVID-19 pandemic are considered. Poverty rates are not as high in South Africa as they are in the rest of the continent. Considerable progress has been made by the South African Government to address the poverty that is found in the country. Various poverty alleviation policies have been implemented along with the introduction of the social wage. Despite this, a significant number of South Africans still suffer from poverty as they do not have adequate access to services such as healthcare, clean water and sanitation. Poverty has essentially become deeper, more unequal and mostly found in the rural areas of the country. Rural poverty in South Africa was therefore the main focus of this research with an emphasis on how it has changed since 1994. The results of the study will provide greater insight into the rural poverty found in the country. This will allow policymakers to be better informed as to how to address this issue going forward. A qualitative research methodology which involved a literature review and an investigation using a descriptive-analytical approach was used in the study. Predominantly rural local municipalities (which are those where the rural population represents over 50% of the total) in the provinces of the North West, Limpopo, Mpumalanga, KwaZulu-Natal, and the Eastern Cape were examined. Unidimensional measures of poverty (for example the Gini coefficient) were used in the research. Numerous multidimensional measures of poverty (such as the unemployment rate and life expectancy) were also utilised. The use of these various poverty measures ensured that a more holistic perspective of poverty, and more specifically rural poverty, was provided. v Findings from the research showed that monetary poverty declined throughout the rural areas of these provinces. Some improvements in multidimensional poverty were also seen such as lowering dependency ratios and increased numbers of residents who had access to education, electricity and own or have paid off their houses. Unfortunately, the data did suggest some worrying trends as well. The Gini coefficient had increased in these areas indicating growing levels of income inequality. Unemployment rates had also grown making it more and more difficult for rural dwellers to find employment. This was probably one of the major reasons for the rural/urban migration and civil unrest which has been seen in the country. A third concern was the poor service delivery with extremely low levels of provision of flush toilets, piped water and weekly refuse removal in the rural areas. There was also very uneven access to services across the predominantly rural local municipalities. The percentage of rural residents with access to electricity and a formal dwelling was much higher than those with access to other basic services such as water. This indicates that while some elements of the rural poverty question have been addressed in South Africa, other elements have not. The South African Government needs to start addressing these particular issues if they want to eradicate rural poverty in the country by 2030.