South Africa milestones to achieving the sustainable development goals on poverty and hunger

South Africa has signed the Sustainable Development Goals (SDGs) and placed poverty and inequality
reduction at the forefront of its National Development Plan. This study links a nonparametric income
distribution (micro) simulation model and an economywide general equilibrium (macro) model to define
the milestones South Africa must meet to halve poverty and end hunger by 2030 as targeted by the SDGs.
The current economic growth of 2.0 percent on average annually must be accelerated to 4.5 percent
between 2015 and 2030 to achieve the SDGs on poverty and hunger. Although an income growth strategy
is important to reduce hunger, an income redistribution strategy of expanding social assistance to cover 10
percent of the population—that is, nearly 7 million persons—appears to be a key to ending hunger by
2030. Rural areas should be targeted for intervention to reduce income inequality. Skilled and high-skilled
labor markets offer better employment and earning opportunities in these geographic areas than do the
markets for other skill levels. Thus, skill development programs in these areas are likely to contribute to
meeting the SDGs on poverty and hunger by 2030.