In keeping with practice in many other countries, an official poverty line has been proposed for South Africa to assist in measuring the extent of household poverty and monitoring progress in poverty reduction. Government proposes to pilot a poverty line for an initial period to allow for public comments and consultations before its design is finalised. Statistics South Africa will launch the series before the end of 2007. In summary, the proposal is:
- A poverty line based on minimum food needs for daily energy requirements, plus essential non-food items, is prepared.
- Two additional thresholds below and above the poverty line as indicators of extreme poverty and of a broader level of household income adequacy.
- Publication by Statistics South Africa of an annually updated poverty line and the lower and upper thresholds to take account of price changes, using a basket of goods from the CPI, subject to review every five years to ensure that the poverty line and thresholds remain relevant and accurate.
For further discussion on issues to be considered when deciding on and adopting a national poverty line see the Statistics South Africa/Treasury discussion paper.
You are also welcome to submit your comments to Statistics South Africa and the National Treasury by clicking on this link
here or by sending an email to
povertyline@treasury.gov.za
Background documents: