CAPE TOWN, South Africa — A newly released Oxfam South Africa report on wealth inequality reveals a staggering economic divide, showing that the country’s single richest billionaire holds more wealth than the bottom 70% of the population combined. The comprehensive analysis underscores the nation’s position as one of the most unequal societies globally, pointing to systemic economic structures, labor exploitation, and tax loopholes as primary drivers of this extreme concentration of resources while tens of millions continue to live in abject poverty.
Amir Bagheri-oromi, a spokesperson for Oxfam South Africa, explained that the report had been a work in progress for several years but was strategically timed to align with global momentum on the issue. The release follows South Africa’s G20 presidency, during which President Cyril Ramaphosa commissioned an extraordinary committee to publish a report on global inequality, which was recently presented at the Junga gathering.
“Considering the momentum at a global stage to address inequality, we thought it would be rather fitting to look at inequality here at home,” Bagheri-oromi noted regarding the timing of the publication.
The Mechanics of Wealth Capture
The financial disparities highlighted in the study are stark. According to Bagheri-oromi, the richest individual’s wealth is almost double that of the bottom 70% combined. However, the issue extends beyond mere income; it is fundamentally about asset ownership. Wealth concentration in South Africa is heavily tied to land, property, businesses, and financial assets.
Since 2019, the richest 1% of the population has captured 56% of all newly created wealth in the country, while the bottom 90% received just 14%.
“Wealth generates more wealth,” Bagheri-oromi explained. He noted that those who already own assets benefit from investment returns, property growth, and inheritance. This dynamic is deeply rooted in the historical inequality left behind by apartheid, which established a profoundly unequal ownership of land, capital, and economic opportunities from the very beginning.
Land Ownership and Unfinished Transformation
Land ownership remains one of the clearest illustrations of this unfinished economic transformation. The report finds that white South Africans, who constitute just 7% of the population, still own 72% of individually owned farmland. In contrast, black African individuals own a mere 4%.
This data arrives amidst ongoing international debates, including recent pushback from the United States regarding “untruths” about land grabs and pressure on South Africa to halt its economic transformation programs. The report’s findings, however, frame the issue as a reminder of policy failures in addressing the underlying structures of inequality that have remained largely unchanged since 1994.
Post-1994 Efforts vs. Structural Reality
While acknowledging that significant investments have been made since the end of apartheid—such as social grants, public services, and economic inclusion programs—Bagheri-oromi emphasized that these measures have not gone far enough to alter the core structures of ownership.
The economy continues to produce too few decent jobs, leaving unemployment and insecure work at extremely high levels. Furthermore, the burden of these structural failures falls disproportionately on women, who are often the most vulnerable demographic. Bagheri-oromi highlighted that women carry the heavy load of unpaid care work—tending to children and the elderly, and performing arduous tasks like carrying water in rural areas—without financial appreciation or recognition.
Policy Recommendations for the Future
To combat these entrenched issues, the Oxfam South Africa report outlines several priority actions aimed at dismantling the structures that continuously reproduce inequality, rather than just treating the symptoms.
Key recommendations include placing women at the center of economic policy, taxing extreme wealth, and investing heavily in care, public services, and social protection. Additionally, the report calls for robust international cooperation to ensure that economic transformation benefits the broader population rather than a fraction of the elite.
