As South Africa observed National Children’s Day, the Nelson Mandela Children’s Fund (NMCF), in partnership with Deloitte, has launched the 2024 Child Poverty Report: The Economic Impact of Child Poverty in South Africa, at the June 16 Memorial Acre in Soweto.
The groundbreaking study is one of the most notable reports regarding the understanding of the challenging pitfalls faced by children in South Africa. It quantifies and exposes the true cost of child poverty, and the results show that it is far more staggering than anyone had imagined. The insights reveal the direct costs and hidden long-term economic consequences of child poverty, demonstrating the urgent need for immediate, concerted action and cross-sector collaboration.
The Deloitte team of researchers found that the state spends a staggering R660-680 billion on tackling child poverty; yet, there are no clear signs that the battle is being won. That amounts to 9% of South Africa’s gross domestic product (GDP).
Furthermore, the economic potential linked to child poverty results in an annual loss of R1.3 trillion, or eighteen per cent of GDP. As we emphasise the word “potential,” we must be concerned about the bleak future painted here.
Linda Ncube-Nkomo, Chief Executive Officer of the NMCF, said: “We have reached a state where our conversations are about meetings for the sake of it and fail to adequately address the challenges faced by communities – particularly those hampering the development and growth of our children. The findings of this report clearly emphasise the urgent need for a reset if we are to safeguard the future of our children. We can do better; we can do so not only by looking to the government for solutions but also by working closely with the private and civil society sectors, as we all have an interest in addressing the scourges highlighted in the report.”
Some of the facts on the direct costs of child poverty in SA, stated in the Report, are;
- The private sector spends around R831 million or 0.01% of the South African GDP on alleviating child poverty through its CSI spend;
- The NGO sector spends between R2 billion and R21 billion, or between 0.03% and 0.3% of the South African GDP;
- The government spends R830 million on child poverty each year;
- Around R51 000 is spent per child living in poverty per annum which equates to an amount of R4 250 per child per month on providing support to children living in poverty.
The report is produced under the auspices of the NMCF’s Child Survival, Development, and Thriving (CSDT) programme, which is managed in partnership with Deloitte. The CSDT programme targets children under five years old and focuses on their survival and development during the first 1,000 days of life.
The two identified challenges are child mortality and malnutrition. Hence, the NMCF, through its internal partners, has decided to emphasise the strengthening of health systems and family and community outreach programmes.
Ashleigh Theophanides, Chief Sustainability Officer at Deloitte Africa says, “This report should be seen as a starting point for conversations, decision-making, and further investigations around the economic impact of child poverty in South Africa. Addressing and remediating child poverty in South Africa will lead to far-reaching economic benefits. However, the most important benefits are for those children directly impacted by a life of poverty. We trust that this report will create a case for change and make an impact that matters for the children in our country.
The report unequivocally calls on all stakeholders, including business, government, civil society, and the media, to get involved, from curating conversations and solutions to ensuring that there are no systemic issues when policies must be implemented.
To download the report, click here: https://bit.ly/4hy5ZYG
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