For many young black professionals in South Africa, "Black Tax" has been a defining reality for decades.
This term describes the financial assistance that working individuals offer to their families. It usually covers necessities such as household expenses, education, and healthcare. However, the question of whether the Black Tax will become a lighter or heavier burden in 2025 still persists, considering high unemployment, slow economic growth, and rising living expenses.
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Economic strain
Post-pandemic unemployment in South Africa remains above 30%, and with inflation driving up the cost of necessities, it is difficult for the nation's economy to recover.
Stats SA reports that the cost of living has increased by 8%in the last 12 months, putting more pressure on young professionals who support their families.
Sindiswa Radebe, a 25-year-old communication practitioner in Vanderbijlpark said, every month, half her salary goes towards helping her parents and younger siblings.
"With the rising cost of food and electricity, I barely have anything left for my own savings," she said.
A survey conducted recently by Vault22, a financial services firm, revealed that 68% of young black professionals in South Africa feel strained financially because of Black Tax, which delays personal goals such as further studies, home ownership, and travel.
"This concept is triggering for me because I was having a conversation with my mother not so long ago", said Thulile Motloung, a 25-year-old health and safety practitioner in the mining industry.
"I work very far from home and because of this I had to buy everything for myself, which puts a major strain on my finances.
"I feel bad when I'm unable to help out at home but sometimes I can't because I have my own expenses," Motloung said.
Shifting attitudes
With various indications that the Black Tax perception is evolving despite financial difficulties, many young professionals encourage financial independence and oppose unrealistic expectations within their families.
According to Lebogang Mokoena, a financial advisory consultant at First National Bank, budgeting and financial literacy are becoming a priority for young generations.
“We are seeing more people openly discussing Black Tax and setting boundaries, which was previously taboo.
"Some are introducing investment strategies to create long-term wealth rather than just monthly handouts.”
In addition, to decreasing financial dependency on one family member's salary, black families are exploring various income channels such as stokvels and small businesses.
Here to stay?
Black Tax is deeply embedded in South African culture, despite plenty desires for it to stop being a financial burden, 2025's economic climate suggests that it still is. However, its impact can be gradually lessened by policy changes, shifting mindsets and financial planning as these aspects can be essential to managing this challenge.
As Motloung puts it, “I don’t mind supporting my family, but I also want to build my own future. It’s about finding a balance.”
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