Overcoming poverty and inequality in South Africa: an assessment of drivers, constraints and opportunities

Overcoming poverty and inequality in South Africa: an assessment of drivers, constraints and opportunities "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. This report is an analysis of South Africa’s progress in reducing poverty and inequality since 1994, with 2006 to 2015 as a reference period. Its aim is to understand the dynamics of poverty and inequality in the country, to identify the drivers of progress for the purpose of further policy actions in this area.

The report shows that, 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 socio-economic challenges are deep, structural and long-term."