Overall poverty levels are lower today compared to 1994. Relatively high and consistent economic growth following the end of apartheid in 1994 up to around 2011 supported poverty reduction in South Africa, although economic growth prospects have been slowing in recent years. The economy is currently not generating sufficient jobs, and the unemployment rate was 27.7 percent in the third quarter of 2017. Youth and unskilled workers bear the brunt of the problem as employers seek skilled workers, and the youth unemployment rate was 38,6 percent. As a result, poverty rates increased between 2011 and 2015. This experience is a reminder of the reality that the country’s socioeconomic challenges are deep, structural and long-term. This report is therefore timely as we, as a country, continue to grapple with these challenges and seek pathways to sustainable solutions, guided by the National Development Plan (NDP). While the long-term trend indicates progress in reducing poverty, inequality has remained stubbornly high. The report reveals South Africa as one of the most unequal countries in the world, with consumption inequality having increased since 1994. Wealth inequality is high and has been rising over time. A polarised labour market results in high wage inequality. Inter-generational mobility is relatively low and serves as a barrier to inequality reduction.

While the long-term trend indicates progress in reducing poverty, inequality has remained stubbornly high. The OVERCOMING POVERTY AND INEQUALITY IN SOUTH AFRICA (March 2018) report reveals South Africa as one of the most unequal countries in the world, with consumption inequality having increased since 1994.  The report highlights the growing importance of education (skills) and labour market outcomes in supporting the country’s poverty and inequality reduction agenda. Creating more jobs in an inclusive manner is thus important for the realisation of the NDP’s vision of eliminating poverty and reducing inequality."

© 2018 International Bank for Reconstruction and Development / The World Bank

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This work is a product of the staff of The World Bank in close collaboration with the National Planning Commission Secretariat at the Department of Planning, Monitoring and Evaluation, and Statistics South Africa. The findings, interpretations, and conclusions expressed in this work do not necessarily reflect the views of The World Bank, its Board of Executive Directors, or the governments they represent. The World Bank does not guarantee the accuracy of the data included in this work. The boundaries, colours, denominations, and other information shown on any map in this work do not imply any judgement on the part of The World Bank concerning the legal status of any territory or the endorsement or acceptance of such boundaries.

This infographic clearly shows how vital access to healthcare and education is for the relief of poverty, click on the link to watch the animation of the  Multidimensional Poverty Index