District analysis of poverty dynamics in rural South Africa

Abstract

Persistent poverty is a major developmental challenge for South Africa and has multifaceted dimensions. This paper profiled and investigated poverty transitions among rural households in 22 district municipalities in South Africa. Foster-Greer-Thorbecke indices were applied to panel data from the National Income Dynamics Study from 2008 to 2017. Findings indicate that poverty levels varied across districts and poverty was most prevalent in Zululand, OR Tambo and Sisonke districts. Furthermore, districts with high poverty rates also had high poverty gap ratios. Poverty transition analyses revealed that in 82% of the districts, poverty declined between 2008 and 2017, while it increased in 13% of the districts. This transition was not mirrored between waves, with the majority of households remaining in the same poverty status between waves. The study recommends that these traditional rural districts be a major focus of poverty alleviation efforts. The role of the state in providing stability to combat poverty is encouraged through promotion of higher education. Additionally, support for agriculture as a business is also recommended. Collaborations between district municipalities and provincial departments of agriculture could facilitate this. The study adds to existing literature by providing insights from disaggregated profile and analysis of rural poverty in district municipalities.