The massive unemployment
in the country is resulting in a growing indebtedness among households and this seems to be shown by the DIR-report. The report shows that, compared to 1994, average real incomes have been rising. However, SA still ranks among the most economically unequal societies in the world. While the poverty indicators show slight improvement over time, just more than half of South Africans – 52.3% according to Stats SA – still live below the poverty line of R577/month.
The DIR-report shows interesting data on household income and expenses. On page 27 of the report, the findings of mean per capita income and expenditure show that the poorest 30% of South African households have an annual income per person of R4 000 (including welfare benefits). However, the annual expenditure per capita is R6 200, with the difference being made up through debt – and this figure is growing.
Two JSE-listed retail groups have also