Assessing technical efficiency of provincial Health and education sectors in South Africa

Abstract

The study used 12 Data Envelopment Analysis models with six 2017/18 analytical variables. The mean technical efficiency scores for the health sector ranged from 35.7 to 87.2 per cent and the education sector’s average technical efficiency scores from 45.9 to 97.9 per cent. At worst, Gauteng was efficient with eight provinces needing to save R46.4 billion. At best, only Mpumalanga, Western Cape and Free State were inefficient with potential to reduce 6 940 non-core health workers and save R61 million without compromising the prevailing service standards. These savings could also be invested in core healthcare infrastructure and personnel. Insofar as education is concerned, KwaZulu-Natal was the most efficient. At best, only KwaZulu-Natal, Limpopo and Northern Cape were efficient. The inefficient provinces could reduce education expenditure by R24.7 billion while maintaining the same educational outcomes with room to train existing and appoint additional 9 684 teachers.