WELCOME TO POVERTY POLICY WEEK, 25-27NOV.2013

1

POVERTY STATUS ACCORDING TO THE 2011/12 HBS RESULTS TANZANIA MAINLAND

Presented by:

The National Bureau of Statistics

2

OUTLINE

• BACKGROUND • SURVEY DESIGN • COVERAGE • OVERVIEW OF POVERTY • CONCLUSION • WAY FOWARD 3

Background Information

The National Bureau of Statistics (NBS) conducted the 2011/12 Household Budget Survey in Tanzania Mainland as part of Monitoring and Evaluation of MKUKUTA Master Plan, particularly Cluster One.

4

Previous Scientific HBS Surveys conducted since independence include: • • • The 1990/91 HBS; The 2000/01 HBS; The 2007 HBS; and • The 2011/12 HBS.

“These surveys forms the basis for tracking progress resulting from the Government’s poverty-reduction initiatives” 5

MKUKUTA TARGET

Target – To Reduce

Food Poverty up to 12.9 percent by 2015

6

Survey Design

 National Representative – A total of 400 Enumeration Areas were selected:  120 from Dar es Salaam;  120 from Other Urban; and  160 from Rural 7

Coverage

 Three Levels of Analysis – Dar es Salaam, Other Urban Areas and Rural Locations; and  A total of 10,186 out of 10,400 households were interviewed ( Response Rate of 94.1 percent).

8

A Wide Range of Information was Collected

 Household members’ education and health status;  Household expenditures and consumptions;  Ownership of consumer goods and assets;  Housing structure and building materials;  Household access to services and facilities; 9

… cont’d.

 Access to water and sanitation;  Economic activities and employment;  Tourism;  Ownership of non-farm businesses; and  Agricultural activities. 10

OVERVIEW OF INCOME POVERTY INDICATORS

11

Comparison of Poverty Trend

• The 2011/12 HBS results can not be compared directly with the 2007 HBS Results because of different methodologies used. • The comparison will be done later. Results will be included in the Main Report. 12

Measurement of Poverty (Lines)

The Poverty prevailing in Line was adjusted for the prices

different areas

and by which the

interview was conducted

.

the time

in

Poverty line

was based on

purchasing the 153 most common food items

purchased.

13

The

Basic Needs Poverty Line is TZS. 36,482

per adult equivalent per month and

Food poverty Line is TZS. 26,085

per adult equivalent per month.

The daily cost of the food poverty line is TZS. 858 per adult equivalent

.

14

Income Poverty Status (Percent)

•

Food Poverty

•

Basic Need Poverty Dar es Salaam Other Urban Rural Mainland 1.0

8.7

11.3

9.7

Dar es Salaam Other Urban Rural

Mainland

4.2

21.7

33.3

28.2

• ; 15

Distribution of Poor Population

Where are the Poor People?

Rural households are much poorer than those in Urban Areas. Dar es Salaam is substantially better off than Other Urban and Rural Areas (see the next figure) 16

DISTRIBUTION OF POVERTY BY AREA (Percent) 1.5% Dar es Salaam 14.4% Other urban areas 84.1% of the poor in Tanzania live in rural areas

… cont’d.

Who is likely to be Poor?

Poverty is directly related to the number of children aged between 0 - 6 years in the household (percent). No Child One Child 19.8

23.2

Two Children 3 and More 30.3

40.8

18

Poverty Gap Index (Percent)

Poverty Gap is an average shortfall of per capita consumption in the population relative to the poverty line, it identifies the depth of poverty.

19

… cont’d

Poverty Gap Index (Percent)

Dar es Salaam 0.8

Other Urban Areas Rural Areas 5.5

7.9

Mainland 6.9

This means that population living in the Rural Areas is deeper in poverty – further away from poverty line.

20

Income Inequality

Income inequality refers to the extent to which income is distributed in an unevenly manner among the population.

The inequality is measured using the Gini Coefficient 21

… cont’d.

Gini Coefficient

Dar es Salaam Other Urban Areas 0.35

0.37

Rural Areas 0.29

Tanzania Mainland 0.34

There are more inequalities in Other Urban Areas compared to Dar es Salaam and Rural Areas

22

NON – INCOME POVERTY INDICATORS

23

Household Composition

Households consist of an average of 5 persons.

Nearly half (48 percent) of household members are dependants.

Nearly a quarter (24.7 percent) of households are headed by female.

24

Ownership of the Houses

Seventy Six (76) Percent of households own the houses they live in.

The proportion is highest in Rural Areas (89 percent) compared to 58 percent in Other Urban Areas and 37 percent in Dar es Salaam.

25

Modern Roofing Material

Sixty six (66) percent of households live in houses with modern roofs in 2011/12 compared to 55 percent in 2007.

A modern roof in this survey is a roof made of

corrugated iron sheets.

26

Modern Wall Material

Seventy three (73) percent of households live in houses with modern walls in 2011/12 compared to 33 percent of households that lived in houses with modern walls in 2007.

Modern walls include:

stones; cement bricks, sundried bricks, & baked bricks

27

Coverage of National Electricity Grid

Eighteen (18) percent of households live in houses that are connected to the national electricity grid compared to 10 percent in 2007 28

… cont’d.

The coverage is more extensive in urban areas than rural areas (percent).

   Dar es Salaam Other Urban Areas Rural Areas 68 36 4 29

Source of Energy for Lighting

About 40 percent of households use electricity as their main source of energy for lighting.

However, Paraffin remains the main source of energy for lighting in Rural Areas (70 percent of households).

30

Energy for Cooking

The use of electricity for cooking is not common in all areas. About 70 percent of households in Urban Areas use charcoal and about 90 percent of households in Rural Areas use firewood as the main source of energy for cooking.

31

Ownership of Motorcycles

Ownership of motorcycles reached 4 percent in 2011/12 from 1.5 percent in 2007.

32

Use of Mobile Phone

Fifty seven (57) percent of households have at least one member owning a mobile phone.

Ownership of mobile phones differs among the three strata (percent):    Dar es Salaam Other Urban Areas Rural Areas 88 78 45 33

Way Forward

The 2011/12 HBS Data will be used by NBS to: • Rebase the Consumer Price Index using the 2011/12 HBS Results; • Change Estimates on Household Consumption for National Accounts to prepare GDP; 34

… cont’d.

• Poverty Mapping using Small Area Estimation; and • Dissemination of poverty indices at national and regional levels 35

Conclusion

Poverty indicators obtained from the survey highlights the efforts made by the Government towards eradicating food poverty before 2015 as stipulated in MKUKUTA.

Food Poverty was targeted to reach 12.9 percent by 2015. However, the survey result shows that food poverty has reached 9.7 percent by 2011/12.

36

Thank You for Listening

37