Access to energy and poverty alleviation in South Africa

Abstract

Over 14 million South Africans live below the poverty line, and the country still has many people with no access to electricity. Despite the efforts by government, South Africa’s electricity access is still unevenly distributed with disparities clear between urban and rural parts of the country. Providing energy access in rural areas without electricity has the potential to alleviate poverty in those areas. The main goal of this study has therefore been to investigate the impact of energy access in the form of electrification on poverty alleviation in South Africa. The study also focuses on the impact of a socioeconomic factor, namely unemployment. The study focuses particularly on South Africa (including all 9 provinces). The study adopts a quantitative approach, using secondary statistical data. Finally, Amartya Sen’s Capability approach and other theories provide a deeper perspective in understanding the relationship between energy access and poverty alleviation. The key finding from the study is that access to energy can certainly alleviate poverty. The data showed an increase in productivity due to the use of energy, thus a decrease in the unemployment rate. The increase in investments and, intervention and policy implementation since 1994 led to a substantial increase in electricity access across South Africa.