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Image: Public Affairs Research Institute (PARI)<\/p><\/div>\n
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\u2019s 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.<\/p>\n
\u201cFirst of all… to have a certain minimum standard of living and secondly to be able to engage in productive activity,\u201d said Dr\u202fLedger, 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.<\/p>\n
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\u202fpercent of South African households \u2014 roughly 7,5 million people \u2014 paying for minimal basic services means sacrificing food or other essentials.<\/p>\n
\u201cFor 40% of South African households… those households cannot afford to pay anything for the basic amount of services without compromising on food expenditure,\u201d Dr Ledger explained.<\/p>\n
Dr\u202fLedger says the state must shift its stance.<\/p>\n
\u201cWe need to see this as a strategic investment in poverty and inequality rather as some kind of charity.\u201d<\/p>\n
Currently, municipal policy leans towards minimal handouts \u2014 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.<\/p>\n
PARI urges a restructuring of the free basic services scheme. Key proposals include:<\/p>\n
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- Defining a standard consumption threshold tied to actual household needs and income.<\/li>\n
- Ensuring full access to free basic services for about 7,5\u202fmillion households living below the minimum wage.<\/li>\n
- Increasing tariff subsidies for low-income families, funded by reallocating existing municipal service budgets.<\/li>\n<\/ul>\n
Nationally, access to basic utilities has improved since 1994 \u2014 statistics from the Department of Social Development show gains in electrification and sanitation \u2014 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.<\/p>\n
In Johannesburg, PARI researchers contributed to a Free Basic Services study which flagged major implementation gaps and urged urgent reforms, aligning closely with Dr\u202fLedger\u2019s focus on affordability and coverage.<\/p>\n
The United Nations\u2019 2024 SDG report echoed this: “when services are unaffordable for poor households, the value of the social wage is eroded”.<\/p>\n
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 \u2014 more than 12\u202fpercent of monthly income for a quarter of households earning under R3<\/strong>\u202f176<\/strong>. Poor families are forced to reduce food spending \u2014 and sometimes rely on hazardous energy sources such as paraffin and wood \u2014 compounding health and financial harms.<\/p>\n