South Africa: Where 12 million live in extreme poverty

By GREG NICOLSON —

Reducing poverty is seen as the world’s greatest challenge and in South Africa it is counted as one of the country’s triple threats, the other two being unemployment and inequality. Statistics South Africa has published a report that updates the national and provincial poverty lines, setting the minimum socially acceptable standard to separate the poor from the non-poor.

Last year, the World Bank gave South Africa a good story tell. It released a report that said due to South Africa’s “slightly progressive” tax system and “highly progressive” government spending, around 3.6 million people have been lifted out of poverty, halving the number of South Africans living on less than $1.25 a day. Because of grants, free basic services and taxes favouring the poor, the poverty rate dropped from 46.2% to 39%.

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