By Anita Dangazele
- Competition Commission found 53% of rural, 47% of township, and 39% of metro township people earn under R3,500 monthly.
- Shopping centres keep local businesses out through high rents and exclusive contracts that favour big national store brands.
More than half of the people living in South Africa’s rural towns earn less than R3,500 a month, according to a new report from the Competition Commission.
The report also shows that shops and businesses in these areas work against local residents. The commission released its Rural and Township Economy Project 2026 report on Thursday.
It found that 53% of people in rural towns earn under R3,500 a month. In large townships, 47% earn below this amount, while 39% earn under R3,500 in metro townships. Many people fall below the poverty line of R2,846.
These communities hold more than 40% of all South Africans. The report says these areas still carry economic scars from apartheid, which kept Black South Africans out of the main economy.
Malls and shopping centres make it hard for small local businesses to open shops. They use exclusivity deals, high rents and favor big national brands.
Deputy Trade and Industry Minister Zuko Godlimpi said this leaves residents paying higher prices for fewer items.
Small businesses also face red tape with permits and taxes. Weak infrastructure keeps them off online selling apps. Old general dealers are also disappearing.
The Competition Commission will now look at formal investigations into shopping centres in Black and rural areas for unfair practices.
Pictured above: A shopping centre.
Image source: File
