While reflecting on the gains and challenges of South Africa’s democratic journey, Minister in the Presidency, Khumbudzo Ntshavheni, has welcomed the rise in earnings among black South Africans, saying this has significantly changed the racial composition of the country’s middle- and upper-income earners over the past three decades of democracy.
According to the General Household Survey by Statistics South Africa (Stats SA), the proportion of black households earning more than R75 000 per month increased from 29% in 2012 to 41% in 2024.
“Accordingly, the number of black South Africans in the middle- and upper-income brackets, defined as those earning more than R22 000 a month, quadrupled to more than 7 million in 2024 from 2012. Overall, the total number of people in those income groups rose from about 4 million to more than 11 million over the period (2012 - 2024),” the Minister said on Wednesday, tabling the Budget Vote for Stats SA in parliament.
Ntshavheni used the Budget Vote to reflect on evidence presented through Stats SA data over the past 30 years, noting that in 1996, for the first time in South Africa’s history, the organisation undertook a national study to count every person, in every community and language, as equal citizens of a free South Africa.
Poverty trends
In December 2025, Stats SA released the report Poverty Trends in South Africa: An examination of absolute poverty between 2006 and 2023.
The poverty trends report by Stats SA indicates a significant improvement in poverty reduction.
The report points to notable progress in reducing poverty levels.
“For example, the percentage of the population that is considered Lower Bound Poverty Line (LBPL) decreased from 57.5% in 2006 to 37.9% in 2023, number of LBPL poor in millions similarly decreased from 27.3 million in 2006 to 23.2 million in 2023.
“Furthermore, the percentage of the population living in extreme poverty (below the Food Poverty Line) also decreased from 27.4% in 2006 to 17.6% in 2023 – translating to 10.8 million people living in extreme poverty or food poverty line – equalling 2.2 million fewer people living in food poverty line in 2023 compared to 2006,” the Minister said.
Despite the progress, Ntshavheni expressed concern that 10.8 million South Africans still live below the food poverty line.
She said the government would continue using poverty data to improve the targeting of developmental policies and intervention programmes.
“Stats SA in the 2003 – 2026 Poverty Report asserts that education remains one of the most potent tools for fighting poverty, as those with lower education levels recorded notably higher poverty headcounts compared to those with higher levels of education.
“It is for this reason that the implementation of the Basic Education Laws Amendment (BELA) Act is non-negotiable. There is also a need to support the Minister of Higher Education on the continuing work to review the National Student Financial Aid Scheme (NSFAS), including measures to expand access to higher education for the dependents of police officers, teachers, nurses and other public servants who often fall outside existing support thresholds despite facing significant financial pressures,” the Minister said.
The Minister reiterated the government’s commitment to addressing the “missing middle” in higher education funding.
“The aim is to build a more inclusive and sustainable student funding system that broadens opportunity while safeguarding the future viability of the scheme,” the Minister said.
Unemployment concerns
Turning to the persistent challenge of unemployment, Ntshavheni referred to the latest Quarterly Labour Force Survey for 2026, which showed employment declined by 345 000 people to 16.8 million in the first quarter, down from 17.1 million in the previous quarter.
“The argument of an increase in unemployment due to first-quarter trends of increased labour market entrants does not hold, as the country experienced a decline in the number of employed persons,” Ntshavheni said.
She noted that the decline in employment opportunities comes at a time when infrastructure investment is gaining momentum.
The Minister of Finance has announced a R1 trillion allocation for infrastructure development in the 2026 National Budget, while the sixth edition of the South African Investment Conference secured more than R1.5 trillion in investment commitments
“This decline is reported when the country is experiencing an increase in anti-foreign nationals' sentiments, which, in addition to accusing foreign nationals of taking part in criminal activities, the major complaint is the accusation that foreign nationals are taking opportunities that must be reserved for South Africans,” the Minister said.
According to Stats SA’s Migration Module of the Quarterly Labour Force Survey, the unemployment rate among foreign-born persons in 2022 stood at 18.2%, compared to 34% for locally born persons.
“The absorption rate of foreign-born persons was 64% and that of locally born persons was 37,7%, meaning that foreign-born persons were twice as likely to be employed in South Africa than locally born persons. The absorption rate is the proportion of those in working age (15-64 years) who are employed,” she said.
The Minister added that the Border Management Authority (BMA) and the Department of Home Affairs are actively addressing the presence of undocumented foreign nationals.
As of 31 December 2025, South Africa recorded 55 190 refugees and 82 410 asylum seekers.
“Cabinet has directed the Department of Employment and Labour to intensify inspections of workplaces to ensure compliance with employment laws across vulnerable sectors such as hospitality, farms, trucking, and construction, amongst others,” she said.
Municipalities have also been instructed to strengthen enforcement of municipal by-laws, particularly trading by-laws, while South Africans were urged not to sub-lease business licences. -SAnews.gov.za
