An Investigation of Socio-Economic Drivers Contributing to Rural Energy Poverty and their Implications on Off-Grid Households in the Eastern Cape Province, South Africa

Mahali Elizabeth Lesala *

Renewable Energy Research Niche Area, Department of Computational Sciences, Faculty of Science and Agriculture, University of Fort Hare, Alice, South Africa.

Patric Mukumba

Renewable Energy Research Niche Area, Department of Computational Sciences, Faculty of Science and Agriculture, University of Fort Hare, Alice, South Africa.

*Author to whom correspondence should be addressed.


Abstract

Energy poverty remains a persistent development challenge in South Africa, particularly in remote and off-grid communities where structural inequalities and infrastructural neglect limit access to modern energy services. This chapter examines the socioeconomic drivers contributing to energy poverty among off-grid households in the Upper Blinkwater. Using a cross-sectional survey of 53 households, we applied the Foster-Greer-Thorbecke (FGT) approach to derive an energy poverty line, providing a binary classification of households as energy poor or non-poor. A binary regression model is then employed to identify factors influencing the likelihood of being energy poor. Descriptive and econometric analysis reveal that gender, household size, education and reliance on social grants significantly shape household energy outcomes in this community. The findings show that female-headed households face a disproportionately high risk of energy poverty, reflecting broader gender inequalities in income and access to livelihood opportunities. Larger households, contrary to expectations, were less likely to be energy-poor, suggesting economic and labour pooling advantages within multi-member households. Results further challenge the conventional “energy ladder” hypothesis, revealing that even educated households remain constrained by structural barriers, including absent energy infrastructure and limited economic prospects that restrict transitions to modern energy sources.  Social grant dependency was found to be strongly correlated with energy poverty, underscoring the inadequacy emerged as a strong predictor of energy poverty, underscoring the limitations of income transfers in addressing systemic deprivation in off-grid areas.  Overall, the chapter highlights the multidimensional and context-specific nature of rural energy poverty and highlights the need for gender-responsive, economically inclusive and infrastructure-focused policy interventions. By drawing attention to the interplay between socioeconomic vulnerabilities and structural constraints, the study contributes valuable evidence for designing targeted strategies to improve energy access and enhance wellbeing in South Africa’s off-grid rural communities. The findings carry broader relevance for policymakers, practitioners and researchers concerned with energy justice, rural development and sustainable energy transitions in the Global South.

Keywords: Energy access, energy poverty, off-grid households, socioeconomic drivers


How to Cite

Lesala, M. E., & Mukumba, P. (2026). An Investigation of Socio-Economic Drivers Contributing to Rural Energy Poverty and their Implications on Off-Grid Households in the Eastern Cape Province, South Africa. Economics, Business and Management: Recent Advances Vol. 2, 78–101. https://doi.org/10.9734/bpi/ebmra/v2/6750