Friday, March 27, 2020

South Africa's Inequality

Just 3,500 people – 0.01% of the adult population – own 15% of total wealth in South Africa, according to a new study. 

And, there has been no decrease in wealth inequality in the 26 years since democracy.

  • The top 10% (3.5 million people) control 86% of all wealth
  • The top 1% (350,000 people) control 55% of all wealth
  • The top 0.1% (35,000 people) control 29% of all wealth
  • The top 0.01% (3,540 people) control 15% of all wealth
  • The bottom 90% (31,8 million people) control 14% of all wealth
By contrast, due to their debt, the bottom 50%, or 17.7 million people, have an average negative net wealth of -R16,000.
A 2016 study by Anna Orthofer suggested that 1% of the South African population owns at least half of all wealth, and the top 10% owned up to 99% of all wealth. 

By comparison, Victor Sulla and Precious Zikhali’s 2018 World Bank report “Overcoming Poverty and Inequality in South Africa”, suggests that the top 10% of households account for 71% of household net wealth.

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