South African households collectively spent an estimated R3 trillion between November 2022 and November 2023, with the average annual household consumption expenditure amounting to approximately R143 691 during the survey year.
These findings are according to the Income & Expenditure Survey (IES) 2022/2023, published by Statistics South Africa (Stats SA).
South African households allocated the majority of their consumption expenditure to four main areas in 2023: housing and utilities, food and non-alcoholic beverages, transport, and insurance and financial services.
These categories accounted for 75.6% of total household spending, meaning that three out of every four rand were directed toward these essentials.
While the average annual household consumption expenditure in 2023 was R143 691, the median household consumption expenditure was significantly lower at R82 861.
The disparity between the average (mean) and median annual household consumption expenditure in South Africa reflects significant income inequality within the country.
A large portion of the population spends well below the national average, pulling the median household consumption expenditure down.
In 2023, the average household income was reported at R204 359.
Regionally, Gauteng dominated consumption expenditure, contributing 36% of the total household consumption expenditure, followed by the Western Cape at 18.4%.
While Gauteng’s share was unsurprising due to its population size, Western Cape households emerged as the wealthiest in terms of household consumption expenditure, with an average annual household expenditure of R229 636 and a median consumption expenditure of R128 536.
By contrast, Gauteng households spent an average of R170 628 annually, with a median of R96 933.
In metropolitan areas, Cape Town households led with the highest average household consumption expenditure of R248 539 and a median of R140 523. The City of Tshwane followed, with an average of R198 035 and a median of R123 176.
Over the last eight years, average household consumption expenditure decreased by 7.2% in real terms.
