S African poverty in downtrend thanks to government grants

JOHANNESBURG, Apr 3 (AFP): A dramatic increase in South African government grants helped reduce poverty in the last decade, but millions remain on the breadline and deep inequality persists, according to official data released Thursday.
Between 2006 and 2011 Africa's largest economy saw a significant a drop in the number of citizens languishing in poverty -- from 57 per cent to 46 per cent.
Statistics South Africa said the drop was thanks to "a growing social safety net, income growth (and) above inflation wage increases."
The government provides an array of help including free health care, schooling, old-age pensions, child support grants, housing, water and electricity.
Government grants have grown exponentially since the turn of the millennium, when three million South Africans needed assistance.
By 2006, a total of 10 million South Africans got assistance and by 2011 that figure was 15 million.
Since 2000, child support grants alone increased from 150,000 to over 10 million in 2011.
Despite this, poor economic growth and rampant joblessness means 23 million South Africans still live in poverty and an estimated one in five remains in extreme poverty.
Poverty was defined as a monthly income of less than 430-620 rand ($40-$58 at today's exchange rates), depending on the year and inflation levels.
That was deemed enough to buy adequate amounts of food and other basics.
The report also showed that inequality has barely changed in the 20 years since the end of Apartheid.
"Unfortunately, while the poverty situation is improving, inequality in our society remains a serious problem," the report stated.
The reliance on government support for the economy is also seen in job's market.
During the global financial crisis South Africa lost an estimated one million jobs.
Around 350,000 jobs have been clawed back, but that has largely been driven by the biggest growth in public-sector employment since 1975, rather than private-sector gains.