S. Africa aiming to narrow wage gap

South Africa is betting on a newly introduced national minimum wage to increase domestic spending, improve lives and tackle poverty in the African country.

The country introduced national minimum wage for the first time this year. In his New Year address, President Cyril Ramaphosa said low-paid workers will now earn $1.44 an hour, translating to $252 per month depending on the number of hours worked.

While there is opposition in some quarters, some experts and trade unions agree that it was a necessary tool to close the wage gap and address poverty.