In the face of rising inflation and stagnant wages, South Africans are increasingly turning to side hustles to make ends meet. A recent survey conducted online loan provider Wonga S. Africa reveals a burgeoning “side hustle nation,” where nearly two-thirds of employees earning less than R10,000 per month (approx. 570 USD) are engaged in additional income-generating activities.
The survey, which gathered responses from over 6,000 South Africans, paints a picture of resilience and ingenuity in the face of economic adversity.
“South Africans are known to be resilient in the face of adversity, and this reflects in the detailed data from the survey. It is encouraging that many of the respondents have found innovative ways in which to turn a challenge into an opportunity and earn additional income.”
James Williams, Head of Marketing at Wonga South Africa.
The timing of this trend is notable. While a third of respondents started their side hustles prior to 2020, the numbers have surged in recent years. In 2021, 17.7% of respondents took on a side hustle, with that figure jumping to 24.3% in 2022. By May 2024, when the survey was conducted, an additional 14% had joined the ranks of side hustlers. This upward trajectory reflects the mounting financial pressures faced by many South African households.
The nature of these side hustles varies widely, from traditional informal economy activities to more tech-savvy endeavours. Many are selling poultry, braiding hair, and running spaza shops [I didn’t know what these were either, wiki link here if you’re curious] alongside their 9-to-5 jobs. Others are leveraging the digital economy, becoming online instructors, transcriptionists, or marketers.
Unsurprisingly, the survey found that investing more time in a side hustle correlates with higher earnings. Nearly half of the respondents spend over four hours a week on their side hustle, with 24% of this group making more than R5,000 per month, and 9% earning over R10,000. This data suggests that for some, side hustles have the potential to become significant income sources, if not full time careers, if given adequate time and attention.
However, the path to side hustle success is not without its challenges. The survey revealed that load shedding – South Africa’s term for rolling blackouts – is having a significant impact on side hustlers, particularly those operating within the township economy. More than half (53%) of respondents reported being negatively affected by power outages. The consequences range from lost business opportunities to supply chain disruptions and equipment damage.
In response to these challenges, a remarkable 38% of side hustlers have adopted off-grid solutions. This proactive approach includes investing in alternative energy sources such as solar panels, generators, or battery-powered equipment. Such adaptability speaks to the determination of South Africans to overcome obstacles in pursuit of financial stability.
The rise of side hustles in South Africa is not just a testament to individual resourcefulness; it’s also a reflection of broader economic trends. According to Statistics South Africa, the country’s unemployment rate stood at 32.9% in the first quarter of 2024, one of the highest in the world. In this context, side hustles serve as a crucial buffer against economic uncertainty.
The proliferation of the side hustle aligns with global trends in the gig economy. A World Bank report suggests that the gig economy is growing rapidly in developing countries, offering flexible work opportunities but also raising concerns about job security and benefits.
For many South Africans, starting a side hustle requires overcoming financial hurdles. The survey found that nearly half of respondents (47.8%) spent between R100 and R1,000 to get their side hustle up and running. Funding sources varied, with 20% using some form of credit or loan, 13% borrowing from friends or family, and others tapping into personal savings, bootstrapping, crowdfunding, or stokvels (which are community-based savings groups popular in South Africa).
While side hustles offer a lifeline for many, they also raise important questions about work-life balance and the adequacy of primary incomes. The fact that so many South Africans need to work additional hours to make ends meet points to underlying economic issues that require attention at a policy level.
As South Africa grapples with these economic challenges, the rise of side hustles represents both a solution and a symptom. On one hand, it showcases the entrepreneurial spirit and adaptability of South Africans. On the other… it highlights the need for more comprehensive economic reforms to ensure that full-time employment provides a living wage.
Looking ahead, the side hustle phenomenon is likely to grow even further. As digital technologies continue to lower barriers to entry for many types of businesses, we may see even more South Africans venturing into entrepreneurial side projects. However, the hope remains that these side hustles can become stepping stones to more stable and prosperous livelihoods, rather than necessary supplements to inadequate incomes.
In the meantime, South Africa’s side hustle nation serves as a powerful reminder of human resilience in the face of economic adversity. It’s a testament to the ingenuity and determination of ordinary citizens striving to create better lives for themselves and their families, one side gig at a time.
