Mzansi's informal economy, narrowly defined as citizens who do not pay taxes to the South African Revenue Service (SARS), will be in real trouble by 2024. According to TimesLIVE, half of adult South Africans living in Mzansi's informal economy struggle to afford essentials such as food and provisions. electricity.
Of course, Eskom's recent 12.8% tariff hike and the fact that South African Social Security Agency subsidies have not kept pace with inflation will only exacerbate this gap. south african Recent reports indicate that consumer inflation in 2024 will be approximately 6% Therefore, it exceeds the increase in the SASSA subsidy. 4.8%.
Mzansi’s informal economy in 2024
Now, a new report by FinMark Trust reveals the pressing financial challenges for those involved in Mzansi's informal economy. By 2024, there will be fewer jobs and the number of low-income people will only increase.
- 40% of adults borrow money to buy food
- 20 million Adults no longer use electricity because they can't afford it.
Living expenses (food, utilities, transportation, communication expenses) account for this. 85% Breakdown of monthly income:
- Grocery – 30.4%.
- energy – 11.5%.
- Transportation facilities – 9.1%.
- communication – 8.8%.
- Home maintenance, rental, and fees – 8.5%.
worrying numbers
Jabulani Khumalo, senior data and analytics specialist at FinMark Trust, said anything more would be “very burdensome”. Ten% Half of household income goes towards energy. Therefore, this year, 2 out of 5 of her children reported that they had no electricity at home.
Additionally, those stuck in Mzansi's informal economy rely on credit to pay their bills.
- 35% Active credit consumers (15.6 million individuals).
- 40% Some people borrow money just to buy food.
- Over the past 20 years, Mzansi's workforce has shrunk. 47% (2003) 39% In 2023.
- Employment is declining in Mzansi's informal economy. 32% (2003) 20% In 2023.
- The proportion of this off-balance sheet division is 19% Of the total adult population of Mzansi.
- The average monthly personal income of a citizen is R4 199which exceeds the national minimum wage.
- Additionally, the number of individuals receiving SASSA grants has increased from 10 million (37%) in 2003. 28 million (68%) In 2023.
No retirement plan
out of approx. 30 million 86% of South African adults do not have a retirement plan or any savings. Therefore, the use of medical aid and retirement products is lower than before. 17% to 12% In the last 20 years. Of these, funeral insurance continues to be the most popular type of insurance. 48% of the adult population have such policies.
Read next: Minister announces revised SASSA social grants
Are you a member of Mzansi's informal economy and are things as difficult as this report reveals? Please share your thoughts with our viewers in the comments section below.don't forget to follow us @a_o_o_o_o_ For the latest updates, visit X and The South African on Facebook.
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