Poverty in the Western Cape

Source: Elsenburg 2005

Measuring Poverty and Inequality in South Africa and the Western Cape

Two measures (the 40th percentile and 20th percentile cut-off point of adult equivalent per capita income) have been used to measure poverty in South Africa. The annual income of the former was equal to R5,057 (£ 393/€ 498) per annum in 2000 and relates to a proportion of the population living below the poverty for South Africa of 49.8%.  The same figure for the Western Cape (second richest region in the country) was 20.8%.

Using the 20th percentile cut-off point  - equating to an income of just R2,717 (£ 212/€ 264) per annum in 2000 gives a proportion of the population living below this ‘ultra-poverty line’ of 28.2%. In the Western Cape it was 6%.

'Poverty rates [in the Western Cape] vary greatly between racial groups. There is virtually no poverty among White people (0.6%), and only 6.7% of the Asian population is poor. In sharp contrast the poverty rates for Coloured and African people are 19.2% and 42.1% respectively. Poverty is also clearly a rural phenomenon, with the rural poverty rate estimated at 26.1% compared to 20.1% in urban areas. The poverty rate is also much higher among agricultural households (33.0%) than non-agricultural households (19.2%).'

(For all figures above see www.elsenburg.com.)

Measured by the GINI Index of family income distribution South Africa was in 2005 the second most unequal country in the world (see CIA World Factbook). The GINI Index for the Western Cape was slightly lower but still shockingly high (0.7 against 0.63).

The table above shows household income distribution in the Western Cape districts.  It shows the large disparities between Cape Town and the other districts and the manner in which African household incomes are generally much lower than all other racial groups in both agricultural and non-agricultural households in all districts with the exception of Boland for non-agricultural households.

  To: Socio-Economic Conditions in 2010