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< South Africa's GDP
Economics Main Page >

Security expenses as percentage of total income earned for various industries in South Africa

​​​Date: 26 November 2018
Category: Economics

Related Topics

We take a look at the latest numbers from the Annual Financial Statistics (AFS) survey published by Statistics South Africa (Stats SA). In this article we will focus on the security costs as a percentage of total income earned by firms. Which industries or sub industries pays the highest percentage of total income earned on security? 
Picture
  • SA's manufacturing industry
  • South Africa's GDP
  • ​Employee costs as percentage of total income

Political parties paying a fair chunk for security?

The interactive bar chart shows the 12 industries in South Africa that spends the highest percentage of total income on security, as measured by the AFS for 2017.
From the bar chart above it is clear that security makes up a very small part of overall expenditure. The industry with the highest security spending as a percentage of total income being "Activities of businesses and employers' organizations". Basically unions, guilds and other forms of businesses or employer groups such as various chambers or representative organizations. This specific industry spends 3.57% of income earned on security.

Owners and sellers of fixed property pays 2.55% of total income on security.  Activities related to political organizations spends 2.03% on security. Possibly to protect head offices of political parties and main party members? One we are concerned to see making it into the top 10 is railway transport. Sadly using trains has become increasingly dangerous in South Africa with commuters being robbed all over South Africa in trains they use to get to and from work. In recent years the impact of poor train transport (unreliable, delays, security worries) has seen train commuter numbers plummet, and a massive rise in taxi usage.  We wrote an article about this a while ago.

The image below provides more details on the transport usage between trains and taxi's
Picture
Anyways, back to security costs as a percentage of total income for firms in South Africa. In total in 2017 South African firms spent R19.9 billion on security, with it's total income coming in at R9.4 trillion. That implies a mere 0.2% of income earned by businesses in South Africa is spent on security. To be honest we thought the number would be a lot higher, especially considering the fact that criminals are targeting businesses more and more. We will keep a close eye on this number to check whether it increases over time. Below a summary of the top 20 industries when it comes to spending on security as a percentage of total income earned:
  • Activities of business and employers' organisations :      3.57%
  • Owing and/or sale of own fixed property:       2.55%
  • Activities of political organisations; activities of other membership organisations n.e.c:.       2.03%
  • Railway transport :      1.93%
  • Activities of religious organisations   :    1.73%
  • Manufacture of tobacco products:       1.12%
  • Social work activities:       1.07%
  • Chiropractors and other associated health care services :      0.99%
  • Other supporting transport activities :       0.98%
  • Agricultural and livestock research :      0.90%
  • Maintenance and repair of motor vehicles  :     0.86%
  • Property owing and letting:       0.73%
  • Psychiatric hospitals:       0.68%
  • Hotels, camping sites and other provision of short-stay accommodation:       0.64%
  • Other recreational activities:       0.61%
  • Sporting activities:       0.59%
  • Dimension stone (granite, marble, slate, and wonderstone) :      0.58%
  • Retail trade in non-specialised stores with food, beverages and tobacco predominating:       0.57%
  • General hospitals :       0.56%
  • Renting of construction and civil engineering machinery and equipment:       0.54%

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Related Topics

  • ​SA's manufacturing industry
  • South Africa's GDP​
  • ​Employee costs as percentage of total income


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