SA households drowning in debt, but repayments got a little easier
Discover how the latest SARB report reveals the state of South African household debt and the surprising improvements in financial health, despite rising debt levels
Image: Pixabay
The South African Reserve Bank (SARB) took a close look at the country's economy and found household debt is now almost two-thirds of what people earn, simply because debts are growing faster than income.
But there's some good news from SARB's latest report: the amount you spend on paying off debt, compared to disposable income went down. This is, partially, thanks to a small interest rate cut of 0.25 percentage points in January.
SARB also pointed out, in its Thursday release of the Quarterly Bulletin, that the average household's overall financial health improved early in 2025. This is because the value of what people own grew more than what they owe. Specifically, rising stock prices and increasing house values helped boost people's savings and assets.
The bulletin also details the performance of various sub sectors in terms of real gross value added (GVA) – which measures GDP without inflationary effects.
In terms of economic sectors, that agriculture was a shining star, mining remains in the doldrums, manufacturing continues to decline, while retail, motor trade as well as tourism and accommodation subsectors gained during the first quarter.
In addition to subdued demand from the electricity-intensive mining and manufacturing sectors, electricity generation was constrained by breakdowns at several of Eskom's generation units, resulting in the renewed implementation of electricity load-shedding. The contraction in the real output of the construction sector reflected lower civil construction and residential building activity.
Video Player is loading.
Play Video
Play
Unmute
Current Time
0:00
/
Duration
-:-
Loaded :
0%
Stream Type LIVE
Seek to live, currently behind live
LIVE
Remaining Time
-
0:00
This is a modal window.
Beginning of dialog window. Escape will cancel and close the window.
Text Color White Black Red Green Blue Yellow Magenta Cyan
Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan
Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan
Transparency Transparent Semi-Transparent Opaque
Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps
Reset
restore all settings to the default values Done
Close Modal Dialog
End of dialog window.
Advertisement
Next
Stay
Close ✕
The tertiary sector – which includes all kinds of services like banking, shops, transport, personal care, education, and healthcare – grew a bit faster in early 2025. SARB reported that shops, car sales, tourism, and hotels saw improvements, but wholesale trade decreased.
SARB also said that 'the expansion in the transport, storage and communication services sector was underpinned by increased activity in land freight and air transport as well as transport support services'.
The finance, property, and business services sector also grew slightly in the first quarter of 2025, thanks to more activity in insurance, pension funds, and other financial support services. However, government services and personal services (like hairdressers or gyms) continued to shrink.
IOL
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The South African
7 hours ago
- The South African
'Chiefs pay a lot of money for players, sir'
Kaizer Chiefs' marketing director, Jessica Motaung, has dismissed claims that the club is unwilling to invest in players. In recent years, Amakhosi has often refrained from making significant expenditures and has, at times, signed free agents. The club has been linked to players like Percy Tau and Sipho Mbule, who have both previously left their respective clubs. During the launch of the Toyota Cup, Motaung emphasised that the club is prepared to spend money on acquiring players. 'Chiefs pay a lot of money, sir. So, I'm actually quite surprised, so I think it is absolute nonsense. If I look at our budgets and I look at the investments we are making into players and the transfer space,' she said. Motaung hinted that some clubs were unfair in terms of pricing their players, making it difficult for Chiefs and other big teams. 'I also think the South African market needs to evaluate itself. Are the negotiations fair? Are the prices people are asking for players fair? We have to look at our industry but we have certainly made sure and you can see from our investments in the last season. Not only in the players but in the technical team,' she said. Amakhosi are yet to announce any signings; however, they have already parted ways with five players. Next month, the team will travel to the Netherlands, where they will have their pre-season camp. Motaung confirmed that Chiefs will announce new players in the coming weeks. Let us know by leaving a comment below, or send a WhatsApp to 060 011 021 1 Subscribe to The South African website's newsletters and follow us on WhatsApp, Facebook, X and Bluesky for the latest news.
The Star
10 hours ago
- The Star
Ramaphosa and Trump to discuss trade relations at G7 Summit
Mashudu Sadike | Published 2 weeks ago President Cyril Ramaphosa is set to meet with US President Donald Trump on the sidelines of the Group of Seven (G7) Summit in Canada this weekend. The meeting will focus on key issues, including the African Growth and Opportunity Act (AGOA) and US-SA tariffs. Ramaphosa's meeting with Trump comes after South Africa submitted a revised framework proposal to the US, aiming to expand trade and investment relations between the two countries. The US imposed tariffs on South African imports in April, with a 90-day pause on reciprocal tariffs of 30% against South African exports. The tariffs were part of a broader set of 'liberation day' tariffs imposed by Trump on all US trading partners. However, they were later reduced to a base rate of 10%, with the expectation that countries would use the 90 days to propose solutions addressing the US's trade deficit concerns. Ramaphosa's meeting with Trump will be his second in about three weeks, following their tense encounter at the White House last month. During their previous meeting, Ramaphosa emphasised the importance of the US's role in the G20 Summit and invited Trump to attend the G20 Leaders' Summit in Johannesburg later this year. Trump agreed to attend, and Ramaphosa sees this as a positive development for bilateral relations. According to sources close to Ramaphosa, the meeting agenda will include discussions on AGOA, providing duty-free access to the US market for some African products. The agreement is set to expire in September, and South Africa is eager to see it renewed. Ramaphosa will also raise concerns about US-SA tariffs, urging the US not to increase them beyond the current 10% if negotiations on a new trade framework are not concluded by July 9. The sources further said the meeting between Ramaphosa and Trump was significant, given the current state of US-SA trade relations. 'The business sector has expressed concerns about the rise of tariffs, and Ramaphosa is under pressure to come up with answers. A successful meeting could help to ease tensions and pave the way for improved trade relations between the two countries,' the source added. Presidency spokesperson Vincent Magwenya did not respond to questions as to what to expect at the upcoming meeting. However, Ramaphosa, while speaking to journalists on Tuesday after he announced the date for the National Dialogue on various issues affecting the country, confirmed that he would be meeting Trump, Canadian Prime Minister Mark Carney, and German Chancellor Friedrich Merz. Ramaphosa said he was invited by Carney, who holds the presidency of the G7, and would also use the opportunity to talk about the G20 Summit to be hosted by South Africa in November, where Trump will take over the presidency. 'We're going to use it as a platform to begin to consolidate what we want to achieve in November when the leaders' summit takes place here (in Johannesburg),' he said. Last month, Ramaphosa and his delegation included Minister of Trade and Industry Parks Tau, Minister in the Presidency Khumbudzo Ntshavheni, Agriculture Minister John Steenhuisen, and International Relations Minister Ronald Lamola. His goals for that meeting included resetting US-SA relations and beginning serious engagement with the US on trade and investment. He emphasised that South Africa did not 'go kowtowing' to the White House but rather took the initiative to engage with the US. 'For us, it's important for us as a nation to reposition ourselves in the very turbulent geopolitical architecture or situation that we have,' Ramaphosa said at the time. Cape Times
The South African
11 hours ago
- The South African
Prince Harry attends New York Summit, urges purpose over duty
Prince Harry made a surprise appearance at the NEXUS Global Summit in New York City on 27 June. The Duke of Sussex, now 40, addressed a room full of young philanthropists and impact investors. His message was simple but powerful: move from duty to purpose. Harry spoke candidly about his journey. 'I was born into a life of service. At first, it felt like something I had to do. Now, it's something I want to do,' he told the audience. He encouraged others to find their reasons for serving, not just to follow expectations, according to People . Harry highlighted the work of the Archewell Foundation, which he co-founded with his wife, Meghan Markle. 'Our mission is rooted in compassionate leadership,' he explained. 'It's about committing to something greater than ourselves.' The foundation's motto is clear: 'Show Up, Do Good.' He urged the audience to think about their legacies. 'Ask yourself what you want to leave behind. Align your actions and investments with that vision,' he said. Harry challenged the crowd to use their platforms for good. 'We need to care for each other and our children's future. Let's tackle the systems, not just the symptoms, that hold us back,' he said. The summit, which runs from 26 to 28 June, brings together 350 of the world's top young changemakers. Topics include mental health, technology for good, climate change, and impact investing. Many of these issues are close to Harry's heart. South Africa faces many challenges that Harry addressed. Issues like mental health, youth unemployment, and inequality are pressing here too. Prince Harry's message of moving from duty to purpose resonates with many, especially the younger generation. His call to 'tackle the systems' is particularly relevant. In South Africa, systemic issues often keep people from reaching their potential. Harry's words offer hope and direction. Prince Harry's wife, Meghan, also recently spoke at the TIME100 Summit in New York. She shared, 'I'm the happiest I've ever been. To have a partner and husband who is so supportive, and healthy kids who are so joyful. I never would have imagined at this point I would feel so happy and grateful, and I do.' Harry and Meghan now live in California with their children, Prince Archie, 6, and Princess Lilibet, 4. Their foundation, Archewell, continues to support projects around the world, including in Africa. Prince Harry's appearance in New York was unannounced, but his message was clear and timely. His story is a reminder that service can be a choice, not just a duty. Purpose can drive real change, both at home and abroad. WHAT DOES 'MOVING FROM DUTY TO PURPOSE' MEAN TO YOU? Let us know by leaving a comment below, or send a WhatsApp to 060 011 021 1. Subscribe to The South African website's newsletters and follow us on WhatsApp, Facebook, X and Bluesky for the latest news.
