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The Citizen
7 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.'
IOL News
a day ago
- Business
- IOL News
Opposition parties criticise City's budget for misrepresenting poor communities
Cape Town Mayor Geordin Hill-Lewis addressing City Council on the adoption of the metro's Invested in Hope Budget 2025/26 on 26 June. Image: Supplied / City of Cape Town OPPOSITION parties have accused the City of misrepresenting the realities faced by poor and working-class communities in adopting the 2025/26 budget. The final budget tabled during Council meeting on Thursday highlighted a range of revisions, which Mayor Geordin Hill-Lewis introduced said were aimed at easing cost burdens for pensioners and middle-income households while preserving the City's multibillion-rand infrastructure investment programme. 'Our budget asks a little more of those who can afford it, while protecting basic services for those who can't afford it,' Hill-Lewis told councillors. 'The budget was largely welcomed by lower-income residents, and we've also managed to significantly lower increases for middle-class residents, in the end building broad support for the budget across the city.' The mayor announced significant enhancements to pensioner rebates, including a 100 percent rates and cleaning charge rebate for those earning up to R10,000 per month, up from the previous R7,500 threshold. 'A 50 percent rebate will now be available up to R20,000 income, 20% up to R24,000 income, and 10% up to the R27,000 max threshold,' he said. He also revealed that 97% of ratepayers would avoid electricity tariff increases above 20%, thanks in part to the removal of a 10% City cleaning surcharge from electricity prices. 'Thousands of households will pay less to consume electricity from 1 July,' Hill-Lewis said. Fixed water and sanitation charges, previously based on pipe size, will now be determined by property value. The mayor said this would lead to lower fixed charges for homes valued under R2.5 million. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Next Stay Close ✕ Ad loading Addressing the retention of fixed charges linked to property value, Hill-Lewis said: 'The only other alternative... is for everyone to pay a flat charge regardless of whether you are low-income or affluent. We must be clear that lower-income and wealthy households cannot make equal contributions... It's not fair, nor sustainable.' Despite these revisions, opposition councillors issued scathing rebukes of the budget and its priorities. GOOD party councillor Axolile Notywala said: 'The DA's failures, lies and denialism in this budget are killing Black and Coloured children in Cape Town. Just yesterday, a child almost drowned while walking from school in a flooded street because the DA-led City of Cape Town failed to maintain drainage systems. This was in Parkwood, not in Clifton.' Notywala accused the DA of using 'PR stunts' while neglecting the infrastructure needs of poor communities. ANC councillor Xolani Sotashe described the budget as 'investing in falsehoods and continuous deception.' He added that many of the capital projects listed in the budget were not new. 'Some of the capital projects contained in this budget are as old as 10 years, yet the mayor talks as if these projects are new. Service delivery delayed is service delivery denied.' Sotashe said key public concerns included the introduction of fixed charges, poor road and sanitation infrastructure, lack of enforcement of by-laws, poor maintenance of municipal facilities, and weak public engagement.
IOL News
2 days ago
- Politics
- IOL News
City Power's free electricity drive brings relief to struggling households
Mayor of Johannesburg Dada Morero. Image: Itumeleng English Independent Newspapers Mayor of Johannesburg Dada Morero says Johannesburg has taken significant strides to address energy inequality through its innovative Free Basic Electricity programme. Since its launch on 17 June, the initiative has offered a lifeline to low‑income households, with more than 650 homes already registered to receive 50 kilowatt‑hours of electricity each month at no cost. This drive is not merely about power distribution; it is a declaration of dignity, says Morero. 'Electricity should not be a luxury for the few. It is a necessity for everyone,' he told community members at a recent briefing. 'Our government must ensure that even those with the least still have access to the basics.' The programme is aimed at households earning under R7 500 per month, including pensioners, unemployed families, child‑headed households, and recipients of social grants. Morero sees the Free Basic Electricity initiative as a cornerstone of a broader vision to reform infrastructure and energy access within the city. His administration has also pledged to eliminate load shedding in Johannesburg within two years by forging partnerships with private energy suppliers and investing in alternative sources of power. These efforts are complemented by campaigns to encourage energy efficiency and smarter consumption among ratepayers. Morero said he draws on personal experience to understand the challenges faced by under‑resourced communities. He believes that inclusive governance must start with practical measures that immediately improve people's lives. 'This is a step toward narrowing the gap between the privileged and the poor,' he said. 'It is a signal that this city cares, and that help is not just promised, but delivered.' City Power's CEO, Tshifularo Mashava, emphasises that this initiative delivers more than just electricity units. 'This is about dignity,' she said. 'It is about making sure a child has light to study by and families can prepare meals and heat water. We are talking about the basic right to live in a safe and warm environment.' By guaranteeing a steady supply of 50 kilowatt‑hours per month, families can rely on enough power for essential tasks, reducing their dependence on dangerous alternatives such as open flames. Moreover, beneficiaries are exempt from the R230 monthly electricity surcharge introduced in July. For households already under pressure from the rising cost of living, this exemption provides vital breathing space that could make a significant difference in their ability to afford food, transport, or school supplies. To qualify, applicants must be South African citizens or permanent residents, legally occupy their property, and provide proof of identity, residence, income, and a municipal account. While the registration target ends on 31 July, Mashava warns residents not to wait. 'We have the teams, the systems, and the capacity. Now we need the public to step forward. We do not want anyone who qualifies to miss this opportunity.' City Power has deployed dedicated outreach teams throughout all seven regions of Johannesburg. These officers go door to door, helping residents complete forms, gather necessary documents, and resolve issues that might prevent them from qualifying. In many cases, faulty or unregistered electricity meters have posed a barrier. City Power has responded by offering free meter replacements and repairs for those willing to regularise their connections—no fines, no penalties. This approach reflects Morero's philosophy of service delivery with compassion. By easing technical and administrative burdens, the administration aims to bring as many households as possible into the programme, ensuring alignment with its goal of reducing energy inequality. Beyond immediate relief, the Free Basic Electricity programme is part of a longer‑term vision. Morero's office is addressing systemic issues such as outdated infrastructure and unequal spatial development. Load shedding remains a challenge across South Africa, and Johannesburg is no exception. The city's strategy involves partnerships with independent power producers and investment in renewable energy projects, especially solar solutions for public facilities and social housing. At the same time, the administration is working on revenue optimisation through improved billing and financial management, using the funds to reinvest in infrastructure upgrades. Morero's finance planning includes achieving a revenue collection threshold of over 90% for rates and services. This generates more resources for technological innovation and citywide service delivery. Community feedback has been overwhelmingly positive, with many beneficiaries reporting immediate improvements in daily life. Grandmothers like 72‑year‑old Phindile Mokoena from Soweto said the free electricity allowed her to boil water and keep warm in winter without worrying about her small pension. Similarly, teachers working from home have praised the scheme for providing reliable lighting to prepare lessons and support children's remote learning needs. Still, gaps remain. City Power and Morero's office recognise these shortfalls and are intensifying efforts to register the hard‑to‑reach, including residents in informal settlements and those facing language or documentation barriers. As the 31 July deadline approaches, the administration is pushing hard to ensure no eligible household misses out. City Power encourages residents to visit service centres or apply online. With strong political will, a compassionate approach, and an efficient system, the Free Basic Electricity programme could become a model for other cities grappling with energy poverty.
IOL News
3 days ago
- Politics
- IOL News
MK Party spokesperson Nhlamulo Ndhlela releases lab results amid drug use claims from Floyd Shivambu
MK Party spokesperson Nhlamulo Ndhlela denies drug allegations with medical proof. Image: Itumeleng English / Independent Newspapers The uMkhonto weSizwe Party's national spokesperson, Nhlamulo Ndhlela, has released medical test results which appear to confirm he is free from drugs and alcohol. This follows public allegations by former Secretary-General Floyd Shivambu that he was a user of the substances. Shivambu recently accused Ndhlela of being "a liar, takes drugs, and is always under the influence of alcohol." In response, Ndhlela has categorically denied the claims and refuted the claims by publishing drug and alcohol screening results on his official X account. The test results, issued by certified medical facility Lancet Laboratories, confirm he tested negative for the following substances: Alcohol, Cannabis (THC), Cocaine, Amphetamines (including methamphetamine), Opiates (including heroin, codeine, morphine), Benzodiazepines, Barbiturates, Methadone, Methaqualone and Phencyclidine (PCP). However, IOL reached out to Lancet Laboratories, who said that they could neither deny nor confirm the results. Meanwhile, Shivambu says thousands of people have applied to be volunteers in his National Consultation Team (NCT). "The people come from different political parties, the ANC, DA, EFF and a substantial number from MK Party. It is very senior leaders who occupy various position in government who have pledged solidarity," he told the SABC. Shivambu claimed that Jacob Zuma offered him the leadership position in the party, but he denied. "In the initial discussions when I joined there were discussions by President Zuma that I must be the President of the party which I rejected. I said that would be inappropriate because I had tremendous respect of his leadership." However, speaking to the national broadcaster, Ndhlela accused Shivambu of being arrogant. He dismissed Shivambu's claims of R7 million being siphoned from the party monthly. "Umkhonto WeSizwe is a strong party. It is the fastest growing political party in this country. We are bound to have alien tendencies that are not cultural to the party. This is the case with what we are finding ourselves in from now. He has never raised the issue of the R7 million within the party," Ndhlela claimed. Ndhlela has also formally demanded a public apology and retraction from Shivambu within 48 hours, threatening legal action if the demand is not met. "Our client, Nhlamulo Ndhlela, has been subjected to a vicious campaign of lies and character assassination," his lawyers said in a statement. The legal team outlined specific demands, including a public retraction on Shivambu's X account, pinned for seven days, and an unconditional apology. "Social media cannot be a lawless space where individuals are slandered without consequence. We are preparing to issue summons to identified perpetrators and will seek substantial damages." The lawyers also called on Shivambu to contact eNCA to broadcast a correction, with failure to comply risking further legal action. IOL Politics Get your news on the go, click here to join the IOL News WhatsApp channel.
IOL News
3 days ago
- Business
- IOL News
When short-term jobs aren't enough: Lessons from Komati's Just Transition
Since March, Seriti Institute has been implementing the Social Employment Fund (SEF) in Komati, a programme under the Presidential Employment Stimulus that enables work for the common good. Image: Supplied Komati, Mpumalanga - The silence left by the shutdown of the local power station in 2022 is more than just a drop in electricity output. It is the quiet of a community struggling to rebuild after losing its economic heartbeat. Since the shutdown, approximately R7 billion has been channelled into Komati through the Eskom Just Energy Transition Project, backed by the World Bank, Canadian concessional finance, and ESMAP. Yet, despite this significant investment, the town's 4600 residents have seen almost no tangible benefits in terms of sustainable employment or local economic revival. Good Intentions, Slow Delivery Over the past two years, dozens of consultants, researchers, and development partners have engaged with stakeholders, including Eskom, municipalities, civic groups, unions, and national agencies. Multiple committees and coordination bodies have been established, including Presidential Climate Commission task teams, district forums, and JET-specific working groups. While many of these structures were established with good intentions and have made valuable contributions, some have, over time, contributed to slower decision-making and delayed implementation. This is often due to limited coordination rather than a lack of effort. In several cases, well-meaning interventions, whether in agriculture, training, or psychosocial support, have operated independently, highlighting an opportunity to improve alignment around key areas such as land access, water provision, and community outreach. 'Komati deserves not only investment, but true integration. The time has come for aligned, community-led action that addresses the root causes of unemployment, disconnection, and disillusionment, beyond surface-level interventions.' The Social Employment Fund: A Different Kind of Work Since March, Seriti Institute has been implementing the Social Employment Fund (SEF) in Komati, a programme under the Presidential Employment Stimulus that enables work for the common good. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Next Stay Close ✕ Funded by the Industrial Development Corporation (IDC) and delivered through civil society partners, SEF offers part-time employment (16 hours per week) at the national minimum wage. Participants contribute to community-based projects, such as food gardens, public infrastructure maintenance, and learning support, while gaining valuable skills and work experience. SEF is built on the belief that communities have value, even when the market overlooks them. It is more than a job; it is a pathway to purpose. 'SEF gives structure and dignity, but for transformation to take root, time and continuity are essential', said Juanita. The Promise - and the Pain When SEF opened recruitment in Komati, we received over 500 applications for just 300 placements, proof of the community's hunger for opportunity. But within a few months, many participants left. Some migrated to other cities for better opportunities, others took short-term high-paying jobs, and some absconded. This isn't laziness. It is the result of years of reliance on stable, well-paying jobs in the mining and energy sectors. The sudden shift to part-time, developmental work is not just economic; it is emotional. It impacts identity, structure, and purpose. Short-term contracts don't allow enough time for participants to adjust, develop new work habits, or see the long-term value of their work. Barriers on the Ground Our implementation team now travels weekly to Komati to manage resignations, replace personal protective equipment (PPE), and restart site operations, costs that weren't originally anticipated. Some participants exit the programme without returning PPE, adding pressure to already limited resources. Our vision for a local agricultural hub, producing high-value crops, creating sustainable job income opportunities, and offering hands-on training, remains on hold due to the lack of accessible arable land. Most land in the area is privately owned or managed by Eskom and surrounding mining companies. For meaningful agricultural livelihoods to take root, it is essential that landowners and strategic stakeholders actively support initiatives that create long-term value for the community. Unlocking land for development is not just a logistical step; it is a signal of shared commitment to inclusive, regenerative economic growth. Some of the currently established communal gardens rely on municipal supplies, which are often unreliable, while others are still awaiting approval to access nearby mine water sources. As a result, even the most basic needs remain out of reach. From Circuit Breaker to Catalyst The Social Employment Fund (SEF) has already positively impacted the lives of over 100 000 people nationwide. It has supported communities in growing gardens, nurturing small businesses, and opening new doors for young people, whether through digital tools, early childhood development, or financial literacy. For many, SEF has been more than a programme; it's been a lifeline, disrupting the cycles of unemployment and marginalisation. It holds the promise of lasting change. But real transformation takes more than short-term effort. It needs time, trust, and co-investment. As one participant put it, 'You can't heal, grow, or rebuild in just ten months. Real change takes time.' Komati's Lesson: Think Long-Term Public employment programmes must move beyond the logic of temporary relief. To be truly effective, they must walk with communities at their own pace, rooted in their realities, rather than ahead of them or imposed from above. Transformation is not only about jobs; it's about supporting transitions that are social, emotional, and economic. SEF's strength lies in its holistic design. It provides income, yes, but also a renewed sense of purpose, structure in daily life, and a vision for what's possible. It builds confidence, fosters community cohesion, and opens pathways that were previously closed. But this kind of impact doesn't happen overnight. If SEF is to fulfil its transformative potential. In that case, it must be given room to grow, sustained with long-term commitment, scaled to reach more communities, and strengthened through collaboration, trust, and investment in what works. A Call to Action Suppose we are genuinely committed to a Just Energy Transition, one that includes everyone and builds a society that works for all. In that case, we must invest in programmes like SEF with the long-term vision, patience, and support they deserve. Komati is not just calling for jobs. It is calling for healing, for stability, and for the space to reimagine its future. Communities in transition need more than a quick fix; they need partners who will walk the journey with them. We cannot offer a ladder of hope only to pull it away before people have found their footing. Instead, let us build bridges that last and walk them side by side with the communities we serve.
