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Many black South Africans pay a "Black Tax" (and some Whites pay a "White Tax")

“Black tax” is the street-name for hurdles, caused by structural discrimination, that black people have to overcome in order to access quality education and jobs.

For example, a bright graduate can’t accept an internship as the stipend doesn’t cover traveling to and from the faraway township where she lives.

Another one drops out to support nine family members who are all unemployed.

The Money Show presenter Bruce Whitfield interviewed Gerald Mwandiambira, Acting CEO of the South African Savings Institute (scroll down to listen to the audio).

It’s more relevant to refer to the “Sandwich Generation” than “Black Tax”. Wherever there are wealth gaps there are sandwich generations. You also get a “White Tax” in South Africa. For example, BEE forced some white people our of jobs or compelled them to retire earlier than they planned; their children have to pick up the tab.

Gerald Mwandiambira, Acting CEO of the South African Savings Institute

We can’t ignore South Africa’s inequalities. We must accept there’s a whole generation who never had the opportunity to get an education. These adults have offspring who made it out; they’re often seen as 'family ATMs'.

Gerald Mwandiambira, Acting CEO of the South African Savings Institute

We need more financial products designed to help people who are suffering from this 'Black Tax' phenomenon.

Gerald Mwandiambira, Acting CEO of the South African Savings Institute

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