Income and expenditure patterns in the city of Tshwane

Carel van AardtIncome and expenditure research division

Bureau of Market ResearchUnisa

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Contents

Income patterns

Household wealth patterns

Living standards

Expenditure patterns

Concluding remarks

Background

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Background

Tshwane statistics

• Nationally: 47.5% of households with incomes lower than R 3500 pm, 20.8% in Tshwane.

• 2% of SA poor and 9.7% of SA affluent in Tshwane.• About 8.5% of national GVA produced in Tshwane.• 25.3% unemployed and 13.4% underemployed.• National Gini coefficient is 0.67, Tshwane Gini

coeficient is 0.71.• 33.9% of employed are self-employed – 68.9% full-

time and 31.1% part-time.• Financial vulnerability score out of 10 is 5.14.

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Income patterns

Percentage distribution of income by age group

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0-19 20-29 30-39 40-49 50-59 60+

No income 70 55 30 25 27 18

Very low income:

R1-2500pm

29 18 24 24 26 54

Low income: R

2501-5000pm

0 10 13 12 13 7

Middle income: R

5001-20000pm

1 14 22 24 22 15

High income: R

20000pm+

0 4 11 14 13 7

Total 100 100 100 100 100 100

Percentage distribution of income by population group

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Black Coloured Indian White

No income 49 47 46 38

Very low income:

R1-2500pm 32 16 10 7

Low income: R

2501-5000pm 9 8 7 5

Middle income: R

5001-20000pm 8 21 27 29

High income: R

20000pm+ 2 7 11 21

Total 100 100 100 100

Percentage distribution of income by employment status

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Employed Unemployed Not economically active

No income 4 95 84

Very low income:

R1-2500pm 31 3 13

Low income: R

2501-5000pm 19 1 1

Middle income: R

5001-20000pm 31 1 2

High income: R

20000pm+ 15 0 1

Total 100 100 100

Percentage distribution of income by educational status

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No schooling Grade 0-7 Grade 8-12 Post-matric

No income 53 51 48 18

Very low income:

R1-2500pm 45 39 20 6

Low income: R

2501-5000pm 1 6 11 5

Middle income: R

5001-20000pm 1 3 16 36

High income: R

20000pm+ 0 0 4 35

Total 100 100 100 100

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Household wealth patterns

Percentage distribution of dwellings by population group

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Black ColouredIndian or

Asian WhiteFormal house, townhouse or flat 55 88 97 97Traditional or in back yard 4 4 1 2

Informal dwelling 38 8 1 1

Caravan, boat or hostel 2 - - 0

Other 1 - 1 0

Total 100 100 100 100

Percentage distribution of water source

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Percentage distribution of lighting source

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Living standards

Percentage breakdown by LSM group

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Percentage distribution of LSM groups by employment status

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Not EAP UnemployedWorking Full-Time

Working Part-Time Self Employed Total

LSM 1-4 17 27 36 15 5 100

LSM 5-7 28 23 30 9 9 100

LSM 8-10 30 4 44 6 17 100

Percentage distribution of LSM group by population group

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African Coloured Indian White

LSM 1-4 8 0 2 0

LSM 5-7 70 64 30 22

LSM 8-10 23 36 69 78

Total 100 100 100 100

Percentage distribution of products by LSM group

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LSM 1-4 LSM 5-7 LSM 8-10

Bread 100 100 100

Cheese 63 68 61

Sugar 31 40 59

Yellow Margarine/Butter 79 71 64

Milk 42 53 38

Chicken 52 80 74

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Expenditure patterns

Percentage distribution of expenditure by LSM group

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LSM 1-4 LSM 5-7 LSM 8-10

Food, beverages and tobacco 54 37 16

Clothing and footwear 8 8 4

Furniture and household equipment 2 3 3

Housing, fuel and electricity 13 14 16

Personal care and medical 7 8 10

Other 15 29 51

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Concluding remarks

Issues to be addressed

• Poverty – wealth transfer mechanisms need to be strengthened.

• Unemployment – not higher GVA, rather facilitation and SMME creation.

• Inequality and low skills levels – mass-based education.

• Broad-based development and emergency relief – creation of a strong government and NGO network.

• Culture of entrepreneurship and innovation.• Strengthening social cohesion.

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Thanks for listening