South Africa

The Poverty Probability Index (PPI^®) is a poverty measurement tool for organizations and businesses with a mission to serve the poor.  The PPI is statistically-sound, yet simple to use: the answers to 10 questions about a household’s characteristics and asset ownership are scored to compute the likelihood that the household is living below the poverty line – or above by only a narrow margin.  With the PPI, organizations can identify the clients, customers, or employees who are most likely to be poor or vulnerable to poverty, integrating objective poverty data into their assessments and strategic decision-making.

The latest version of the PPI for South Africa was created in April 2009 by Mark Schreiner of Microfinance Risk Management, L.L.C. Indicators in the PPI for South Africa are based on data from the 2005/06 Income and Expenditure Survey (IES).