A new report by Standard Bank provides some insights into the consumer trends in South Africa – highlighting the stark income inequalities among the country’s people.<\/p>\n
Using data from the Bureau of Market Research (BMR), Standard Bank finds that the low income groups in SA are heavily reliant on the government for social grants (around 40%).<\/p>\n
The middle income groups rely mainly on salaries and wages (60% – 70%) while the upper income group relies on salaries and wages (33% – 61%), net profits (21% – 30%) and investments (5% – 32%) as their main sources of income.<\/p>\n
Approximately 25% of the total South African population depend on income from salaries as their main source of income. The total income contribution of these individuals is 66%.<\/p>\n
Around 23% of the total South African population depend on the government for their main source of income. The total income contribution is around 6%. This ensures secure spending which is not cyclical in nature, however, this is a large expense for the South African government.<\/p>\n
Around 3% of the population report net profit as their main source of income, but the total contribution to income is 13%. This highlights the large returns that are possible from entrepreneurial ability.<\/p>\n
The lowest income group is described as the following: people who earn between R0 – R11,600\u00a0 annually, while middle class people are described as earning between R109,001 – R783,000.<\/p>\n
Those in the affluent bracket earn between R783,001 – R1,693,001 and above.<\/p>\n
Black South Africans are predominantly employed in lower income groups, while, on the other hand white and Indian\/Asian South Africans are predominantly employed in higher income groups.<\/p>\n
There is also a noticeably higher employment rate of White South Africans who are over the age of 65, Standard Bank said.<\/p>\n
Additional findings from Standard Bank:<\/p>\n
The most in-demand jobs in South Africa in 2016<\/strong><\/a><\/p>\n Shocking number of South Africans are flat broke<\/strong><\/a><\/p>\n