South Africa’s middle class is shrinking

702 and CapeTalk's Stephen Grootes speaks to various financial experts...

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South Africa’s middle class is shrinking, and fast.

According to recent data, the average South African had 53% less disposable income in 2024 compared to 2016.

Experts say the middle class is buckling under the weight of high debt, fuel hikes, and rising interest rates.

Add to that a lack of significant wage increases in the last 15 years.

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"The average incomes haven't really grown over the last nine to 10 years since 2015 or so, yet we see things like electricity, rates and all of that have gone up."

- Benay Sager, Executive Head - DebtBusters

Sager says this has forced many people into borrowing.

"What we're finding is, average debt levels for today's consumer is 33% more."

- Benay Sager, Executive Head - DebtBusters

Economist Kevin Lings says that while inflation plays a role, the deeper issue is a lack of economic prospects.

Without rising incomes, or clear career growth opportunities, many middle-class South Africans are stuck.

"If you go to other countries, there are many more job opportunities... you are looking to move up the corporate ladder, you're looking for a better paying job, and those jobs are available."

Kevin Lings, Chief Economist - Stanlib Asset Management

Scroll up to audio player to listen to the full conversation from The Money Show.