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Only 20 percent of South African Youth invest their money - what’s happened to the other 80 percent?’ South Africa’s pioneering alternative investment company, SV Capital, begs the question as to why the majority of young South Africans are failing dismally at building their net-worth, and how to remedy their shortcomings. In a country where the youth constitute a significant portion of the population, the financial future of South Africa hinges on the economic behaviour of its younger generation. However, an alarming statistic by the National Treasury of South Africa reveals that only 20% of South African youth are actively investing their money.

Non-essential youth-spending behaviour is the number one barrier to financial security. A report by the South African Savings Institute (SASI) claims over 70% of South African youth are spending their disposable income on non-essential items, including entertainment, fashion, and dining out. Only a small fraction is allocated towards savings and investments, which paints a concerning picture.



This trend not only hinders personal financial growth but also impacts the broader economic landscape by reducing the potential for future financial stability and wealth generation. “It appears the national savings rate in South Africa is one of the lowest globally, with a substantial portion of the population living month-to-month,” says Co-founder of SV Capital, Ayanda Majola. “By default, we’re thereby cultivating a paycheque-t.

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