Increases in poverty in South Africa, 1999–2002

Figures & data

Changes in the numbers of people in the poorest households, 1999–2002

	R0–R399				R400–R799
All households			Change		1999	2002	Change
Total number of households by expenditure category	2 611 439	3 347 390	735 951	28,2	2 714 924	2 859 258	144 334	5,3
Total number of people	9 216 928	12 090 072	2 873 144	31,2	12 245 962	13 617 194	1 371 232	11,2
Number of people in phouseholds containing only one individual	813 381	1 058 104	244 723	30,1	467 862	557 378	89 516	19,1
Number of people in households containing two adults	554 620	707 266	152 646	27,5	655 884	580 078	−75 806	−11,6
Number of people in households containing more than two adults	363 049	484 685	121 636	33,5	615 460	578 692	−36 768	−6,0
Number of households containing more than two adults	98 268	127 455	29 187		157 193	142 544	−14 649
Number of people in households containing adults and children	7 485 878	9 840 017	2 354 139	31,4	10 506 756	11 901 046	1 394 290	13,3
Number of households	1 422 480	1 808 198	385 718		1 761 927	1 869 297	107 370
Average number of people per household (unadjusted)	5,3	5,4			6,0	6,4
Number of adults per household	2,4	2,5			2,9	3,1
Number of children seven years or younger per household	1,0	1,3			1,1	1,5
Number of children 15 years or younger per household	2,3	2,5			2,6	2,8
Number of unemployed people per household	0,9	1,1			0,8	1,2

Maximum potential consumption levels, 1999 and 2002 (2002 prices)

	Years and expenditure ranges
	1999	2002
Expenditure rage (R/month)	0	486	0	400
	486	972	400	800
Maximum potential per capita expenditure, excluding the CSG and the social wage
Single adult	486,18	972,38	399,99	799,99
Two adults	260,54	521,09	214,35	428,70
More than two adults	149,97	284,67	120,21	226,69
Adults and children	144,93	255,94	116,04	197,78
Households containing adults and children, maximum potential per capita expenditure including the CSG (or BIG) but excluding the social wage
Including CSG for children under the age of seven years			150,07	230,00
Including CSG for children under the age of 15 years			180,82	259,11
Per capita expenditure with BIG (R/month)			216,04	297,78
Per capita value of the CSG or BIG in households containing adults and children Child support grants
Child support grant (children under seven years of age), R/month			34,03	32,22
Child support grant (children under 15 years of age), R/month			64,78	61,33
BIG (per capita)			100,00	100,00

Monthly and daily expenditure, 2002

Expenditure category	R0–R399
Underreporting of expenditure (%)	0	50	100	150
Monthly expenditure in 2002 prices	150,07	208,09	266,11	324,13
Total daily expenditure	4,93	6,84	8,75	10,66
Daily expenditure on food	2,96	4,10	5,25	6,39
Daily expenditure on all other items	1,97	2,74	3,50	4,26
Expenditure category	R400–R799
Underreporting of expenditure (%)	0	50	100	150
Monthly expenditure in 2002 prices	230,00	328,89	427,78	526,67
Total daily expenditure	7,56	10,81	14,06	17,32
Daily expenditure on food	3,40	4,87	6,33	7,79
Daily expenditure on all other items	4,16	5,95	7,74	9,52
Notes: These figures are obtained by adjusting household size for child cost savings and for household economies of scale (adult equivalents). To the figure thus obtained is added the share of the CSG going to each individual in the household. (The CSG is assumed to be equally divided among all members of the household). It is assumed that households in the bottom expenditure category spend 60 per cent of their available income on food. Those in the next category are assumed to spend 45 per cent on food. Income available for expenditure excludes all social wage items.

Maximum potential consumption levels, 2002 (2002 prices)

	Years and expenditure ranges
	2000
Expenditure range (R/month)	0	400
	400	800
Including the CSG (or BIG) and all elements of the social wage
Single adult	1 053,16	1 453,16
Two adults	586,52	800,87
More than two adults	359,17	456,29
Adults and children
Including CSG for children under the age of seven years	344,51	426,82
Including CSG for children under the age of 15 years	375,26	455,93
Excluding the CSG but including the BIG	410,48	494,60
Per capita value of the social wage
Single adult	653,17	653,17
Two adults	372,17	372,17
More than two adults	238,95	229,60
Adults and children	194,44	196,82
Including the CSG (or BIG) and all elements of the social wage except housing
Single adult	824,16	1224,16
Two adults	472,02	686,37
More than two adults	298,95	399,88
Adults and children
Including CSG for children under the age of seven years	302,43	384,74
Including CSG for children under the age of 15 years	333,18	413,85
Excluding the CSG but including the BIG	368,40	452,52
Per capita value of the social wage
Single adult	424,17	424,17
Two adults	257,67	257,67
More than two adults	178,73	173,19
Adults and children	152,36	154,74
Including the CSG (or BIG) and all elements of the social wage except education
Single adult	798,16	1198,16
Two adults	459,02	673,37
More than two adults	292,11	393,48
Adults and children
Including CSG for children under the age of seven years	297,65	378,14
Including CSG for children under the age of 15 years	328,40	407,25
Excluding the CSG but including the BIG	363,62	445,92
Per capita value of the social wage
Single adult	398,17	398,17
Two adults	244,67	244,67
More than two adults	171,90	166,79
Adults and children	147,58	148,14
Percentage by which expenditure is assumed to be underreported	0

Implied proportional allocations of expenditure in PCE plus social wage (%)

Expenditure range R0–R399
Underreporting (%)	0	50	100	150
Food	26	31	35	38
Health	21	18	15	14
Housing	12	10	9	8
Education	14	12	10	9
Social wage+PCE	100	100	100	100
Social wage+PCE (rand/month, 2002 prices)	345	403	461	519
Expenditure range R0–R399
Food	24	28	31	33
Health	17	14	11	10
Housing	10	8	7	6
Education	11	9	8	6
Social wage+PCE	100	100	100	100
Social wage+PCE (rand/month, 2002 prices)	424	523	622	721

Maximum possible numbers of new poor

	Expenditure category
Changes in the numbers of the poor	Bottom	Second	Totals
Assumption 1 (lower bound of bottom category = 25% of upper bound)	2 916 489	1 511 513	4 428 001
Assumption 2 (lower bound of bottom category = 50% of upper bound)	2 938 161	1 511 513	4 449 674
Assumption 3 (lower bound of bottom category = 75% of upper bound)	3 003 178	1 511 513	4 514 691
PL = HSL
Excludes social wage and social grants (CSG or BIG)
Household sizes adjusted for economies of scale and child costs
Value of underestimate of expenditure used in simulation (%)	0

Minimum probable numbers of new poor

Net changes, bottom and second categories
Housing and education components of social wage included
Nominal value of underestimate of expenditure (%)	0	50	100	150
Value of underestimate of expenditure used in simulation (%)	0	50	100	150
Change in number of poor in bottom expenditure category	1 590 000	1 940 000	2 130 000	160 000
Change in number of poor in second expenditure category	840 000	−4 960 000	−8 300 000	−4 120 000
Net changes, bottom and second categories	2 430 000	−3 020 000	−6 170 000	−3 960 000
Housing component of social wage excluded
Value of underestimate of expenditure used in simulation (%)	0	50	100	150
Change in number of poor in bottom expenditure category	2 000 000	2 130 000	2 290 000	1 930 000
Change in number of poor in second expenditure category	840 000	−580 000	−5 120 000	−4 120 000
Net changes, bottom and second categories	2 840 000	1 550 000	−2 830 000	−2 190 000
Education component of social wage excluded
Value of underestimate of expenditure used in simulation (%)	0	50	100	150
Change in number of poor in bottom expenditure category	2 060 000	2 150 000	2 310 000	2 160 000
Change in number of poor in second expenditure category	860 000	−150 000	−4 780 000	−4 120 000
Net changes, bottom and second categories	2 920 000	2 000 000	−2 470 000	−1 970 000
Assumed value of lower bound of bottom category = 50% of upper bound (Assumption 2)
Poverty line:	HSL
Value R/month (2000 prices):	467
Reduced to allow for electricity and water:	No