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.
Using data from the Bureau of Market Research (BMR), Standard Bank highlights the general class system in the country, created largely by inequalities in wealth.
BMR puts the annual income classification of the South African consumer at:
|Annual income||Monthly income||Classification|
|R0 – R11 600||R0 – R967||Lowest|
|R11 601 – R49 000||R968 – R4 083||Second lowest|
|R49 001 – R109 000||R4 084 – R9 083||Low emerging middle|
|R109 001 – R234 000||R9 084 – R19 500||Emerging middle|
|R234 001 – R378 000||R19 501 – R31 500||Lower middle|
|R378 001 – R783 000||R31 501 – R65 250||Upper middle|
|R783 001 – R1 693 000||R65 251 – R141 083||Upper income/Emerging affluent|
|R1 693 001+||R141 084+||Affluent|
Around 53% of South Africa’s population are considered poor according to the income classifications.
This, BMR said, comprises 36% of the population that earn either no income or not more than R11,600 p.a. 17% fall into the second poorest category. These two groups only contribute 11.2% of income.
The middle class, is the next group, according to BMR, and comprises 18% of the working age population. However, the middle class generates the most income. They contribute a combined total income of 64.6%.
While the two most affluent income groups only comprise 0.9% of the population, their income contribution is 22.6%.
“This highlights South Africa’s stark inequality but also the importance of the growing middle class, Standard Bank said.
Source: Business Tech