Based on the census 2011 data, it is estimated that there are 15 million households in South Africa.
70% of households exist on a monthly income of less than R6400 a month. On average each household comprises four people. That means there is just R1600 per person per month – or R53 per person per day for food, clothing, shelter, transport, education, health and electricity with very little left over for non-essentials. In fact, it’s hard to imagine that there is anything left over at the end of each month in these households. These people are poor.
According to Unisa’s BMR the poor in South Africa account for only 20% of household income and expenditure. The remaining 80% of household income and expenditure is attributable to the 30% of households with a monthly income of more than R6400 a month. We call these people the economically active.
The advent of smart phones means that nearly all economically active South Africans now have access to the Internet. From a market research perspective this is really important. It means that we are now able to reach online all of the people in South Africa who account for 80% of household spends.