South Africa Milestones to Achieving the Sustainable Development Goals on Poverty and Hunger

IFPRI Discussion Paper 1731

21 Pages Posted: 10 Sep 2018

See all articles by Ismael Fofana

Ismael Fofana

International Food Policy Research Institute (IFPRI)

M. Chitiga

University of Pretoria - Department of Economics

Ramos Emmanuel Mabugu

Financial and Fiscal Commission

Date Written: June 7, 2018

Abstract

South Africa has signed the Sustainable Development Goals (SDGs) and placed poverty and inequality reduction at the forefront of its National Development Plan. This study links a nonparametric income distribution (micro) simulation model and an economywide general equilibrium (macro) model to define the milestones South Africa must meet to halve poverty and end hunger by 2030 as targeted by the SDGs. The current economic growth of 2.0 percent on average annually must be accelerated to 4.5 percent between 2015 and 2030 to achieve the SDGs on poverty and hunger. Although an income growth strategy is important to reduce hunger, an income redistribution strategy of expanding social assistance to cover 10 percent of the population—that is, nearly 7 million persons—appears to be a key to ending hunger by 2030. Rural areas should be targeted for intervention to reduce income inequality. Skilled and high-skilled labor markets offer better employment and earning opportunities in these geographic areas than do the markets for other skill levels. Thus, skill development programs in these areas are likely to contribute to meeting the SDGs on poverty and hunger by 2030.

Keywords: South Africa, Southern Africa, Africa South of Sahara, Africa, Sustainable Development Goals, Poverty, Hunger, Growth, Inequality, Modeling, Simulation Models, Income Transfers, Skill Training, Unemployment, Income Distribution, Economic Development, Computable General Equilibrium (Cge) Model, Socia

Suggested Citation

Fofana, Ismael and Chitiga, Margaret Mabugu and Mabugu, Ramos Emmanuel, South Africa Milestones to Achieving the Sustainable Development Goals on Poverty and Hunger (June 7, 2018). IFPRI Discussion Paper 1731. Available at SSRN: https://ssrn.com/abstract=3240186

Ismael Fofana (Contact Author)

International Food Policy Research Institute (IFPRI) ( email )

1201 Eye St, NW,
Washington, DC 20005
United States

Margaret Mabugu Chitiga

University of Pretoria - Department of Economics ( email )

Lynnwood Road
Hillcrest
Pretoria 0002
South Africa

Ramos Emmanuel Mabugu

Financial and Fiscal Commission ( email )

South Africa

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