Livelihood diversification and poverty among rural households in Capricorn District, Limpopo Province, South Africa

Abstract

Livelihood diversification in South Africa has become the backbone for many of the households‟ in rural areas and it is perceived as a strategy to cope with the growing population and the rapidly increasing poverty rate. A sizeable number of rural households in South Africa work two or more jobs to generate more income. This serves as a strategy to alleviate their poverty. In spite of these, it is evident that poverty and high rate of unemployment are still prevalent in the rural Capricorn District. Thus, this study examined the nexus between poverty and diversification of livelihoods and to ascertain whether the different livelihood diversification strategies engaged in make rural households better-off or worse-off in the study area. A multistage and simple random sampling technique was employed to collect data from a sample of 216 respondents. Analytical techniques employed were descriptive statistics, FGT Poverty Index and the Probit Regression Model. Nine variables were included as explanatory variables in the Probit Regression and only six variables (gender of the respondents, marital status of the respondents, years of formal education, household size, livelihood index and member of association) were found to be significant at 10%, 5%, 1%, 10%,1% and 5%, respectively. Based on the findings, the study recommends that the diversification of livelihood strategies needs to be strengthened among rural households, investment in formal and vocational training should be intensified to increase rural households‟ participation in more viable livelihood options in the study area.