2 July 2025 | 11:57 CAT
2-minute read

Image: Public Affairs Research Institute (PARI)

In the face of persistent poverty and inequality, a new report by the Public Affairs Research Institute (PARI) underscores a critical gap in South Africa’s development initiatives: the failure to define and properly subsidise minimum levels of water and electricity required for dignified living and productive livelihoods. Speaking to Radio Islam International, PARI researcher Dr Tracy Ledger outlined both the problem and a compelling vision for reform.

“First of all… to have a certain minimum standard of living and secondly to be able to engage in productive activity,” said Dr Ledger, framing the central issue: while foundational development goals like those in the Reconstruction and Development Programme (RDP) and National Development Plan (NDP) emphasise access, they fail to specify exact thresholds of water and electricity necessary for households to function, let alone thrive.

That ambiguity has ripple effects. Without clear benchmarks, tariffs are set loosely, even though many households cannot afford basic usage. PARI’s analysis reveals that for around 40 percent of South African households — roughly 7,5 million people — paying for minimal basic services means sacrificing food or other essentials.

“For 40% of South African households… those households cannot afford to pay anything for the basic amount of services without compromising on food expenditure,” Dr Ledger explained.

Dr Ledger says the state must shift its stance.

“We need to see this as a strategic investment in poverty and inequality rather as some kind of charity.”

Currently, municipal policy leans towards minimal handouts — and even those seldom reach their intended recipients. Although budgeted for 11 million households, free basic electricity benefits actually reach only 2,5 million. PARI recommends redirecting resources to ensure the poorest households receive larger service packages.

PARI urges a restructuring of the free basic services scheme. Key proposals include:

• Defining a standard consumption threshold tied to actual household needs and income.
• Ensuring full access to free basic services for about 7,5 million households living below the minimum wage.
• Increasing tariff subsidies for low-income families, funded by reallocating existing municipal service budgets.

Nationally, access to basic utilities has improved since 1994 — statistics from the Department of Social Development show gains in electrification and sanitation — yet inequality remains entrenched. Municipalities continue to face governance challenges. A 2021 Engineering News feature highlighted how energy policy failures force poor households into unsafe alternatives and undermine broader poverty-reduction goals.

In Johannesburg, PARI researchers contributed to a Free Basic Services study which flagged major implementation gaps and urged urgent reforms, aligning closely with Dr Ledger’s focus on affordability and coverage.

The United Nations’ 2024 SDG report echoed this: “when services are unaffordable for poor households, the value of the social wage is eroded”.

Failure to provide adequate free basic services extends beyond inconvenience. Malnutrition and stunting in children are rising concerns. One municipal watchdog found that water costs for a family of four averaged R406 per month — more than 12 percent of monthly income for a quarter of households earning under R3 176. Poor families are forced to reduce food spending — and sometimes rely on hazardous energy sources such as paraffin and wood — compounding health and financial harms.

Listen to the full interview on Sabaahul Muslim with Moulana Sulaimaan Ravat.