Newsletter 51 – A case study of Capricorn – 11 December 2009
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The supplement to the South Africa Survey entitled Local Government and the Poverty Challenge to be posted next week contains much-needed information on local government ranging from demographics to the economies of the 52 district and metropolitan municipalities, and in some cases even on all 283 municipalities in South Africa. This week’s newsletter focuses on the relationship between poverty and lack of access to basic services, as well as prospects for people to escape the poverty trap. A case study of the Capricorn District Municipality in Limpopo is presented.
The Capricorn District Municipality has one of the highest poverty rates in the country at 61%. This means that 61% of households in the district have a monthly income below R800. Furthermore, more than a quarter (27%) of households have no income. The high level of poverty is due to various factors.
Capricorn’s population is 97% African, 2% white, and 1% coloured and Indian. The African population has historically been impoverished, and this has not changed significantly over the past 15 years. Some 38% of the total population is between the ages of zero and 14. This indicates a high level of dependency considering the poverty level in households in the district. The fact that 22% of the population in the district receive child support grants also indicates the high level of dependency.
The child support grant is intended to alleviate the poverty in which children are raised. However, the matric results of 2008 indicate that many children in the district will continue to be poverty-stricken. The highest pass rate in the district was 87% for the Pietersburg school district (Polokwane), while the lowest was 53% for Vlakfontein - considerably lower than the national average of 63%. While Polowane is a largely urban area and the wealthiest area in the district, Vlakfontein is a small rural settlement 50 kilometres outside Polokwane.
Municipalities with lower unemployment rates do not necessarily have higher employment rates. In fact, rural or isolated municipalities tend to have lower unemployment rates because their jobless population is less able than those in urban areas to actively search for work and thus they do not meet Statistics South Africa’s (Stats SA) criteria to be defined as unemployed. They are instead classified as being not economically active along with children and old persons who do not fall within the working age of between 15 and 65. People who are jobless but do not meet Stats SA’s prerequisites to be classified as unemployed are included in this category. This includes people who are of working age, but are not actively looking for work even though they may want to work.
This pattern is apparent for Capricorn. While the unemployment rate of 18% for the district is lower than the national average of 24%, the employment rate is also lower. The table below shows that more than half of the district’s working age (15 to 65 years) is classified as not economically active.
| Labour status by race in Capricorn | ||||
| Race | Employed | Unemployed | Not economically active | |
| African | 25.5% | 18.5% | 52.3% | |
| Coloured | 36.1% | 26.1% | 34.0% | |
| Indian | 66.4% | 2.0% | 27.4% | |
| White | 67.0% | 3.7% | 22.0% | |
| Total | 26.9% | 18.0% | 52.3% | |
| Source: SAIRR, Local Government and the Poverty Challenge, 2009 | ||||
The local economy grew 4.8% in 2008, and formal employment by 4.7%. GDP per head, at constant 2000 prices, increased by 28% from R17 869 in 1996 to R22 892 in 2008.
This detailed information for all 52 district municipalities in South Africa is included in the Survey supplement which is being mailed to all councillors, some officials, and development organisations in the eight target municipalities, including the Capricorn District Municipality.
- Nthamaga Kgafela
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nkgafela
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last modified
2009-12-11 10:35











