Data company Analytico has published a new report on informal sector earnings in South Africa.
The report is based on data collected from Statistics South Africa and includes a cross-sectional analysis of incomes across all nine provinces.
The informal sector has a significant poverty-reducing effect on the local economy. It is far more beneficial to have South Africans economically participating in the informal sector through self-employment or employment than receiving state grants,” Analytico said.
However, the group noted that there are barriers to successfully sustaining employment in the informal sector. These include:
- Lack of financial literacy and bookkeeping skills;
- Secure business premises and facilities;
- Inability to access credit;
- Many informal sector businesses are based in high crime zones.
“Although informal sector employment does not directly contribute to SARS, the informal sector sustains many South Africans Many businesses in the informal economy expand and often become successful SME’s in the South African formal sector,” Analytico said.
Below the group outlined the earnings across a variety of jobs.
Figures are based on total income in rand per month.
Street food vendors
Car and taxi drivers
Motor vehicle mechanics
Spaza shop owners and workers