4
$\begingroup$

I was researching poverty in Africa and was reading about their daily wages. Based on the article linked, 2/3 of Africans live on less than $1.25 USD, a day.

However, what this article and many other ones don't elaborate on is how that $1.25 is used.

I would like to better understand how African families use their money, and am especially interested to learn how much money goes into savings. For example, maybe 1 dollar is used for food and other necessities, and other $0.25 is kept as savings.

If anyone has any answers or data that may help answer this question, I appreciate any help. Thanks.

Link: http://global-growing.org/en/content/fact-7-about-three-quarters-african-population-live-less-2-half-population-less-125-day

$\endgroup$
  • 1
    $\begingroup$ Your linked article actually says 51 per cent of sub-Saharan Africans live on $1.25 (€0.94) per day. That is rather out of date. For example the World Bank say that in 2013 42.3% of the population below $1.90 a day (2011 PPP) and the proportion may have fallen since then. At that level, saving is likely to be minimal, except for buying the odd animal $\endgroup$ – Henry Aug 7 '18 at 23:26
  • $\begingroup$ You're right, the data's outdated. However, I was still looking to understand what percent of wages goes into their savings. Do you have any data for that? You may be right, but I have yet to find any evidence, so it's only an assumption right now. $\endgroup$ – F16Falcon Aug 8 '18 at 1:21
  • 1
    $\begingroup$ Just something I would like to add. Looking at Africans as a homogeneous groups is really going to impact any sort of economic analysis. Maybe reconsider your question in terms of a single SSA country. $\endgroup$ – Joseph Aug 11 '18 at 14:28
  • $\begingroup$ Good point, different locations and groups probably differ significantly. However, I think I shouldn't to be too picky simply because of the rarity of this kind of data. At this moment, anything helps :) $\endgroup$ – F16Falcon Aug 11 '18 at 22:08
  • $\begingroup$ What's savings? If someone takes \$10 and buys a goat for milk and potentially for food, how should that appear? Is it an investment (savings)? Consumption? Food (milk and meat)? What if it's a billy goat to add to five females? No milk value and kept for breeding rather than eating. Then someone buys seeds for \$2. It will eventually be food, but it's currently an investment. I suspect most Africans grow or raise food, buying tools and animals as they can. I.e. I suspect that paying \$1 for ready-to-cook food is not how it works. $\endgroup$ – Brythan Aug 15 '18 at 3:19

Your Answer

By clicking “Post Your Answer”, you agree to our terms of service, privacy policy and cookie policy

Browse other questions tagged or ask your own question.