The South African MPI Creating a multidimensional poverty index using census data The South Africa I know, the home I understand Statistics South Africa Private Bag X44 Pretoria 0001 South Africa 170 Thabo Sehume Street Pretoria 0002 User information service: 012 310 8600 Fax: 012 310 8500 Main switchboard: 012 310 8911 Fax: 012 321 7381 Website: www.statssa.gov.za Email: [email protected] The South African MPI Creating a multidimensional poverty index using census data Statistics South Africa, 2014 Pali Lehohla, Statistician-General Report No. 03-10-08 The South African MPI: Creating a multidimensional poverty index using census data / Statistics South Africa Published by Statistics South Africa, Private Bag X44, Pretoria 0001 © Statistics South Africa, 2014 Users may apply or process this data, provided Statistics South Africa (Stats SA) is acknowledged as the original source of the data; that it is specified that the application and/or analysis is the result of the user's independent processing of the data; and that neither the basic data nor any reprocessed version or application thereof may be sold or offered for sale in any form whatsoever without prior permission from Stats SA. Stats SA Library Cataloguing-in-Publication (CIP) Data The South African MPI: Creating a multidimensional poverty index using Census data / Statistics South Africa. Pretoria: Statistics South Africa, 2014 Report no.: 03-10-08 58pp ISBN 978-0-621-42616-8 A complete set of Stats SA publications is available at Stats SA Library and the following libraries: National Library of South Africa, Pretoria Division National Library of South Africa, Cape Town Division Library of Parliament, Cape Town Bloemfontein Public Library Natal Society Library, Pietermaritzburg Johannesburg Public Library Eastern Cape Library Services, King William’s Town Central Regional Library, Polokwane Central Reference Library, Nelspruit Central Reference Collection, Kimberley Central Reference Library, Mmabatho This report is available on the Stats SA website: www.statssa.gov.za For technical enquiries please contact: Ross Jennings Tel: (012) 337 6342 Email: [email protected] Copies are obtainable from: Printing and Distribution, Statistics South Africa Tel: (012) 310 8093 (012) 310 8619 Email: [email protected] [email protected] ii Contents List of tables .................................................................................................................................... iv List of figures .................................................................................................................................... v Preface ........................................................................................................................................... 1 Introduction .................................................................................................................................... 2 What is multidimensional poverty? ................................................................................................ 2 The history of multidimensional poverty measurement by Stats SA .................................................... 2 What is the MPI? ......................................................................................................................... 3 Constructing the South African MPI ................................................................................................... 4 Data sources ............................................................................................................................... 4 Exploring the data ........................................................................................................................ 5 The dimensions, the indicators and their deprivation cut-offs ............................................................ 5 The poverty cut-off ....................................................................................................................... 7 Limitations ................................................................................................................................... 8 Using the SAMPI .......................................................................................................................... 8 Profiling multidimensional poverty in South Africa ............................................................................... 9 The poverty measures ................................................................................................................... 9 What is driving the poverty situation? ........................................................................................... 10 Poverty measures at a provincial level .......................................................................................... 11 Poverty profile: Western Cape ..................................................................................................... 16 Poverty profile: Eastern Cape ...................................................................................................... 20 Poverty profile: Northern Cape .................................................................................................... 24 Poverty profile: Free State ........................................................................................................... 28 Poverty profile: KwaZulu-Natal .................................................................................................... 32 Poverty profile: North West ......................................................................................................... 36 Poverty profile: Gauteng ............................................................................................................. 40 Poverty profile: Mpumalanga ...................................................................................................... 44 Poverty profile: Limpopo ............................................................................................................. 48 Conclusion ................................................................................................................................... 52 The way forward ............................................................................................................................ 52 iii List of tables Table 1: The dimensions, indicators and deprivation cut-offs for SAMPI .................................................... 6 Table 2: Deprivation headcounts on each of the indicators ..................................................................... 7 Table 3: The dimensions, indicators and their weights ............................................................................. 8 Table 4: Poverty measures for Census 2001 and Census 2011 ............................................................... 9 Table 5: Intensity of deprivation amongst the poor ................................................................................. 9 Table 6: Poverty measures for Census 2001 and Census 2011 at provincial level ................................... 11 Table 7: Poverty measures for Census 2001 and Census 2011 in Western Cape .................................... 16 Table 8: Poverty measures for Census 2001 and Census 2011 at municipal level in Western Cape ......... 17 Table 9: Poverty measures for Census 2001 and Census 2011 in Eastern Cape ..................................... 20 Table 10: Poverty measures for Census 2001 and Census 2011 at municipal level in Eastern Cape ......... 21 Table 11: Poverty measures for Census 2001 and Census 2011 in Northern Cape ................................. 24 Table 12: Poverty measures for Census 2001 and Census 2011 at municipal level in Northern Cape ...... 25 Table 13: Poverty measures for Census 2001 and Census 2011 in Free State ........................................ 28 Table 14: Poverty measures for Census 2001 and Census 2011 at municipal level in Free State .............. 29 Table 15: Poverty measures for Census 2001 and Census 2011 in KwaZulu-Natal ................................. 32 Table 16: Poverty measures for Census 2001 and Census 2011 at municipal level in KwaZulu-Natal ...... 33 Table 17: Poverty measures for Census 2001 and Census 2011 in North West ...................................... 36 Table 18: Poverty measures for Census 2001 and Census 2011 at municipal level in North West ............ 37 Table 19: Poverty measures for Census 2001 and Census 2011 in Gauteng .......................................... 40 Table 20: Poverty measures for Census 2001 and Census 2011 at municipal level in Gauteng ............... 41 Table 21: Poverty measures for Census 2001 and Census 2011 in Mpumalanga ................................... 44 Table 22: Poverty measures for Census 2001 and Census 2011 at municipal level in Mpumalanga ......... 45 Table 23: Poverty measures for Census 2001 and Census 2011 in Limpopo .......................................... 48 Table 24: Poverty measures for Census 2001 and Census 2011 at municipal level in Limpopo ............... 49 iv List of figures Figure 1: Dimensions and indicators of the MPI ..................................................................................... 3 Figure 2: Contribution of weighted indicators to SAMPI 2001 at national level ....................................... 10 Figure 3: Contribution of weighted indicators to SAMPI 2011 at national level ....................................... 10 Figure 4: Poverty headcount (H) at provincial level in 2001