Poorest workers pay the most for data

For millions of cashiers, guards and cleaners, staying connected is unaffordable. A single gigabyte of prepaid data in South Africa costs around R85 – the equivalent of three hours of work at the minimum wage of R28.79 per hour. In Europe, the same gigabyte costs less than R5.

The numbers paint a bleak picture. Deskless workers often spend 10% to 20% of their monthly income on airtime and data. And, unlike wealthier households with uncapped fibre and 5G, these workers pay the highest effective rates because they don’t qualify for post-paid contracts.

“Workers who are excluded from the formal banking system are forced to buy daily micro-bundles, paying up to R136 per gigabyte,” says Caroline van der Merwe, co-founder and chief product officer at Jem HR. “Meanwhile, contract customers pay a fraction of that. The poorer you are, the more you pay.”

The consequences are stark. A cashier or security guard often needs to choose between buying a gigabyte of data to receive work instructions or putting food on the table. Cleaners lose access to payslips that are only available online. Security guards skip training videos because downloading them wipes out their data balance.

“Internet access underpins almost every aspect of daily life,” Van der Merwe says. “Yet only one in eight young Africans can afford to stay online consistently. In South Africa, many deskless workers ration 50MB or 100MB at a time, stretching every rand until payday.”

Global comparisons of data prices illustrate the uphill battle working class South Africans face compared to their international counterparts.

*Conversion based on 1 USD ≈ R17.35

Employers are beginning to acknowledge the reality that connectivity is not a perk, it is a productivity driver. Companies in security, logistics and retail are experimenting with zero-rated platforms, monthly stipends or workplace WiFi. But these stop-gap measures do not solve the core problem: frontline workers still cannot access the affordable mobile contracts that wealthier households take for granted.

“At Jem we provide mobile phones and contracts directly to frontline workers employed by our customers,” says Van der Merwe. “This removes financial risk for employers and gives workers affordable connectivity. Many who would never qualify for contracts due to income or credit history gain access to smartphones and data. For employers, this translates into more reliable communication, better training, fewer missed updates and higher engagement.

“We are not the only provider of these services,” she adds. “Employers have various options and tools at their disposal. But the bottom line is that smartphones and data are as important to South Africa’s frontline as a laptop and WiFi is to an office worker. It’s become a non-negotiable.”