Latest news with #R3
eNCA
6 hours ago
- Politics
- eNCA
Ndhlela will not retract Shivambu lawsuit
MK party's Nhlamulo Ndhlela JOHANNESBURG - MK Party spokesperson Nhlamulo Ndhlela says he will not accept Floyd Shivambu apology. The former MK Party Secretary-General has retracted his statement insinuating that Ndhlela abuses alcohol and drugs and that he is a liar. Shivambu's apology comes after Ndhlela sent a letter of demand for the remarks made against him. Ndhlela is suing Shivambu for defamation and says he is not retracting his R3 million lawsuit. He is also challenging Shivambu to do a drug screening of his own and make them public like he did.
The Citizen
18 hours ago
- Business
- The Citizen
How SA's youth make and (should) spend their money
While some consider Gen Z a lazy bunch who want everything for nothing, the truth is quite different according to a survey. South Africa's youth are grappling with deepening financial challenges, including crushing unemployment, limited asset ownership and mounting debt levels, making older people wonder how they make and spend their money. Eighty20, a consumer analytics and research company, analysed people younger than 24, who make up 44.5% of the population. With nearly 30 million people under the age of 24, South Africa's economic future hinges on whether this generation can break the cycle of financial exclusion that currently defines their prospects. The research reveals that of the 6.7 million young people between the ages of 18 and 24, only a million are credit-active. However, among these credit users, nearly half have already defaulted on their loans. With an average monthly income of R3 400 (less than half the national average of R7 000) and a youth unemployment rate of 62.4% according to Statistics SA, financial strain is widespread in this age group, Andrew Fulton, director at Eighty20, says. ALSO READ: SA youth not unemployed, rather under-employed SA's youth mainly use retail credit Among the million credit-active youth, retail credit dominates, with 85% of the respondents holding store accounts. Personal unsecured loans follow at 17%, while 9% have credit cards. In addition, young people represent approximately 4% of South Africa's total outstanding debt, carrying R10 billion in combined obligations. However, Fulton points out that their credit performance is worse than the national average, with R1.1 billion, or 11% of their total debt, currently overdue. This elevated delinquency rate signals particular financial stress within this age segment, Fulton says. MRF's Marketing All Product Survey (MAPS) of 20 000 South Africans shows that the youth are more concerned about privacy when it comes to credit. They prefer that others do not know they are taking a personal loan and would rather take the loan from a financial institution rather than from friends or family. South Africa faces a stark financial inclusion divide among young adults, Fulton says. 'While people under 24 represent approximately 20% of new credit market entrants over the past three months, a few hundred thousand individuals, this figure masks a deeper problem that many young South Africans never enter the formal credit market at all. ALSO READ: The dark picture of youth unemployment in South Africa Exclusion among youth creates two distinct groups Fulton says this exclusion creates two distinct groups: people who successfully access credit can join the formal financial system and participate in the economy, while many others remain locked out, classified as 'thin file' clients due to their lack of credit history. 'Without access to formal credit, these young South Africans are excluded from significant economic opportunities.' A credit score serves as the gateway not only to lending products and favourable terms, but to essential services across multiple sectors. A healthy credit profile enables access to cellphone contracts, rental agreements and can even influence employment opportunities, Fulton says. 'Expanding credit access among young adults represents both individual economic empowerment and broader formal economy development.' However, he says a further challenge lies in how people who do qualify for credit perform: approximately half of young borrowers default early in their credit journey, with most maintaining high-risk credit scores. 'This pattern underscores the urgent need for enhanced financial education and for those in distress to get into debt counselling early.' ALSO READ: Entrepreneurship a solution to youth unemployment – but there are challenges Youth make money with side hustles How do young people make their money to make ends meet? Enter the side hustle economy. Fulton points out that youth unemployment is at crisis levels, with fewer young people in formal employment now than in 2008. Harambee, an NGO focused on youth employment solutions, reports in its quarterly Breaking Barriers analysis that of the one million young people entering South Africa's labour market annually, only 40% find work in the short to medium term, while 30% find intermittent employment but remain mostly unemployed or outside education and training, 20% want to work but never find opportunities and 10% stop seeking work altogether. In addition, for those who are employed, side hustles have become essential to make ends meet. BrandMapp, a survey of South Africans in households earning over R10 000 monthly, shows a notable shift: in 2021, 55% reported having no side activities that create extra income, but this dropped to 49% in their most recent survey. The survey asks for details on these activities and the percentage of people who say they are running small businesses as a side hustle, or taking second jobs in their primary field has grown by 50%. This trend mirrors international patterns, with about 50% of millennials and 46% of Gen Z reporting side hustles. ALSO READ: Minister agrees unemployment statistics should include work in informal sector Kind of side hustles the youth choose The nature of these side hustles varies by demographic. BrandMapp data shows that 'home industry' activities are more common among black married couples, while temporary and shift work in restaurants and bars is more prevalent among white South Africans. Fulton says the intersection of limited formal employment, growing debt burdens and the rise of alternative income sources creates challenges as well as opportunities for South Africa's young people. 'In the face of considerable financial headwinds, many young people are turning to side hustles as a means of creating opportunity in a tough economy, but with the right support structures and a focus on keeping their credit history clean, this generation has the potential to drive long-term, inclusive growth.'
The South African
19 hours ago
- Business
- The South African
Here's WHAT happens if you breach the SASSA income threshold
Here's a first-hand account of what grant recipients who break the SASSA income threshold must go through. At the start of May, the agency warned that any suspect/unverified accounts would not have their grants paid. And beneficiaries would be notified by text to validate their profiles in-person at a SASSA office. Initially, SASSA made this sound largely like an identity verification process. However, we're now aware that thousands of grants were overturned due to breaches of the SASSA income threshold. All grant recipient should be aware of the income and asset limits that apply to their specific monthly stipend, as these differ for Old Age and Childcare grants. It appears the three-month notice period is being ignored when it comes to SASSA income threshold breaches. Image: File Nevertheless, it appears the South African Social Security Agency is finally taking a hardline approach to enforcement. According to The Citizen , anyone who exceeds the SASSA income threshold is being forced to repay their ill-gotten money. At last count, nearly 45% of the population is receiving some form of social welfare payment each month. 4 million of these are SASSA Old-Age grants, 13 million are SASSA Child Support beneficiaries and there are nearly 10 million SRD recipients each month. Qualifying parents are allowed to receive Child Support for a newborn right up to their 18th birthday. Image: File That's a lot of people who need their SASSA income threshold and identities verified. Previously, the agency was mandated to serve a written notice of upcoming SASSA grant reviews. Moreover, you were given three months to rectify your finances to comply with any asset and income requirements. Now, however, it appears a new precedent has been set from last month onwards, in which the grant is overturned first and clients must rectify afterwards. According to reports, a child support beneficiary who breached the SASSA income threshold last month is in the process of repaying R3 360. Considering the grant pays out only R560 per month, that's more than five months' worth of assistance owing. Debit orders from your bank account or in-person visits are accepted by SASSA as forms of repayment. Image: File Reports suggest one mother suddenly stopped receiving Child Support payments in May and June. She was alerted via text to visit an agency office in-person and was told to bring a recent bank statement, payslip and copy of her and her child's ID. It came to light that she got a job in January, and her employment income had exceeded the SASSA income threshold. In turn, the agency offered her two options to repay the ill-gotten government assistance. Either pay R3 360 in full before the end of June or make the payment over six months at R560 per month – plus interest. The latter would essentially negate the job she's just secured, costing her more over six months. Tough budget constraints mean the agency is trying to reduce costs wherever it can. Image: File SASSA provides several options for beneficiaries to repay grants: In-person at any SASSA branch office. Bank transfers to SASSA regional accounts. Debit orders arranged through the beneficiaries' bank. Note that when beneficiaries cannot afford to repay funds within a certain timeframe, extensions can be approved by SASSA officials. Although interest charges on outstanding amounts will still accrue. Let us know by leaving a comment below, or send a WhatsApp to 060 011 021 1. Subscribe to The South African website's newsletters and follow us on WhatsApp, Facebook, X and Bluesky for the latest news.
Eyewitness News
a day ago
- Politics
- Eyewitness News
Shivambu withdraws 'drug and alcohol abuse' comments about MK Party's Ndlela
JOHANNESBURG - Former uMkhonto weSizwe (MK) Party secretary-general Floyd Shivambu has withdrawn comments he made about party spokesperson Nhlamulo Ndlela, in which he accused him of being addicted to drugs and alcohol. The retraction came shortly after Ndlela filed a R3 million defamation lawsuit against Shivambu at the Johannesburg High Court. Ndlela argues Shivambu's remarks have damaged his reputation, forming the basis of his legal claim for defamation of character. ALSO READ: MK Party's Ndlela sues Shivambu for defamation of character, demanding R3m Shivambu made the allegations during a series of television interviews this week. He officially retracted his statements during a media briefing on Friday. "When I spoke the other time, I was not yet the national convenor of the Mayibuye process. Part of the guidance, which I agreed to, is that I must unconditionally retract statements about drug and alcohol abuse of Nhlamulo Ndlela unconditionally."
Eyewitness News
a day ago
- Politics
- Eyewitness News
MK Party's Ndlela sues Shivambu for defamation of character, demanding R3m
JOHANNESBURG – The spokesperson of uMkhonto weSizwe (MK) Party, Nhlamulo Ndlela, is suing the party's former secretary general, Floyd Shivambu, for defamation of character, demanding R3 million in damages. This comes after Shivambu accused Ndlela of drug use and alcohol abuse. In papers filed at the Johannesburg High Court, Ndlela claims to have suffered reputational damage from Shivambu's utterances. Shivambu made the accusations during a series of televised interviews, where he opened up about what he described as dodgy dealing within the MK Party. According to court documents, Ndlela said Shivambu was given until this past Tuesday to issue a public apology but failed to do so. Ndlela argued that Shivambu's accusation, suggesting he makes decisions while under the influence, led to widespread mockery on social media, damaging his reputation. He further claimed the remarks have affected his mental health, saying he's suffered anxiety, stress and humiliation. Ndlela noted that the reputational damage has resulted in financial losses totalling R3 million.
