Multidimensional Asset Poverty and the Socio-Cultural Dynamics of Rural Deprivation in South Africa: Evidence from Hlokozi Village

Abstract

This study examines the socioeconomic status and determinants of asset poverty among rural households in Hlokozi village, located in KwaZulu-Natal, in South Africa. The study contributes to multidimensional poverty literature by integrating Principal Component Analysis (PCA)-based asset indexing with econometric modelling to reassess poverty measurement in rural settings. Using household survey data collected from the study area, a composite asset index was constructed to classify households as poor or non-poor. A probit regression model was subsequently employed to identify the socioeconomic determinants of asset poverty. The findings reveal that employment status, educational attainment (secondary, matric, and tertiary education), and the age of the household head significantly reduce the likelihood of asset poverty. In contrast, household head gender, marital status, and household size were found to have no statistically significant effect. The study conceptualises poverty as a multidimensional condition shaped by unequal access to education, employment opportunities, productive resources, and social infrastructure. The findings further demonstrate how structural inequalities and rural marginalisation continue to shape household welfare outcomes in former homeland areas. Given the limited empirical studies on asset poverty in rural South Africa, this study contributes context-specific evidence and policy-relevant insights into rural deprivation and social inequality.