The latest Income and Expenditure Survey by Statistics South Africa has provided valuable insights into the financial landscape of South African households, revealing stark income disparities across provinces, gender, and racial groups.
Conducted from November 2022 to November 2023, the survey provides valuable insights into household spending patterns, highlighting the financial priorities that shape the country’s household economy.
Provincial Income Breakdown
South Africa’s Statistician-General, Risenga Maluleke highlighted that the total household income in South Africa for 2023 was R3 trillion, with an average household earning R204 359 annually. However, provincial differences were significant.
The Western Cape had the highest average household income at R356 000, while Gauteng followed with R250 000, these are the two provinces above national average.
The rest of the provinces are below national average of R204 000, with the Northern Cape following close to the national average of R179 000.
Limpopo had the lowest at R128 000, almost a third of the Western Cape’s average. These disparities highlight the uneven economic development across regions.
Gender Gaps in Income
A striking finding from the survey was the gender income gap. Male-headed households had an average income of R239 590, compared to R158 481 for female-headed households. Notably, male-headed households derived 73.8% of their income from work, while female-headed households earned only 59% from employment.
This reflects broader trends from the Quarterly Labour Force Survey, showing women are less likely to be employed than men.
Racial Disparities in Income
The survey also reveals significant racial income gaps. White households had the highest average income at R676 000, followed by Indian/Asian households at R417 000, and Coloured households at R260 000. Black African households, however, earned below the national average, with an average income of R143 600.
This disparity is largely driven by the fact that white households are more likely to derive income from financial capital, such as investments, while Black Africans primarily rely on social grants and stokvels (also known as invitation-only club of twelve or more people serving as a rotating credit union or saving scheme.)
Unemployment and Structural Inequality
Another key finding was the disparity in unemployment rates. While white South Africans have an unemployment rate of 7.7%, Black African women face a staggering rate of 38.6% — nearly 31% higher than the national average for whites.
Maluleke emphasised that these structural barriers are not unique to South Africa, but reflect global patterns of inequality.
The survey underscores the deeply rooted racial and gender disparities in income, employment, and wealth accumulation. It also highlights the important role of social grants, especially the R350 grants, in supplementing income for black African households.
The 2022-2023 Income and Expenditure Survey paints a clear picture of income inequality in South Africa, with significant differences based on province, gender, and race.
These findings underscore the need for targeted policies that address the structural barriers to employment and wealth creation, and promote more inclusive economic growth. Understanding these disparities is key to crafting policies that can foster a more equitable society for all South Africans.
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Main Image: ISIbalo House, Statistics South Africa via Market Place