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The Citizen
8 hours ago
- Business
- The Citizen
How SA's youth make and (should) spend their money
While some consider Gen Z a lazy bunch who want everything for nothing, the truth is quite different according to a survey. South Africa's youth are grappling with deepening financial challenges, including crushing unemployment, limited asset ownership and mounting debt levels, making older people wonder how they make and spend their money. Eighty20, a consumer analytics and research company, analysed people younger than 24, who make up 44.5% of the population. With nearly 30 million people under the age of 24, South Africa's economic future hinges on whether this generation can break the cycle of financial exclusion that currently defines their prospects. The research reveals that of the 6.7 million young people between the ages of 18 and 24, only a million are credit-active. However, among these credit users, nearly half have already defaulted on their loans. With an average monthly income of R3 400 (less than half the national average of R7 000) and a youth unemployment rate of 62.4% according to Statistics SA, financial strain is widespread in this age group, Andrew Fulton, director at Eighty20, says. ALSO READ: SA youth not unemployed, rather under-employed SA's youth mainly use retail credit Among the million credit-active youth, retail credit dominates, with 85% of the respondents holding store accounts. Personal unsecured loans follow at 17%, while 9% have credit cards. In addition, young people represent approximately 4% of South Africa's total outstanding debt, carrying R10 billion in combined obligations. However, Fulton points out that their credit performance is worse than the national average, with R1.1 billion, or 11% of their total debt, currently overdue. This elevated delinquency rate signals particular financial stress within this age segment, Fulton says. MRF's Marketing All Product Survey (MAPS) of 20 000 South Africans shows that the youth are more concerned about privacy when it comes to credit. They prefer that others do not know they are taking a personal loan and would rather take the loan from a financial institution rather than from friends or family. South Africa faces a stark financial inclusion divide among young adults, Fulton says. 'While people under 24 represent approximately 20% of new credit market entrants over the past three months, a few hundred thousand individuals, this figure masks a deeper problem that many young South Africans never enter the formal credit market at all. ALSO READ: The dark picture of youth unemployment in South Africa Exclusion among youth creates two distinct groups Fulton says this exclusion creates two distinct groups: people who successfully access credit can join the formal financial system and participate in the economy, while many others remain locked out, classified as 'thin file' clients due to their lack of credit history. 'Without access to formal credit, these young South Africans are excluded from significant economic opportunities.' A credit score serves as the gateway not only to lending products and favourable terms, but to essential services across multiple sectors. A healthy credit profile enables access to cellphone contracts, rental agreements and can even influence employment opportunities, Fulton says. 'Expanding credit access among young adults represents both individual economic empowerment and broader formal economy development.' However, he says a further challenge lies in how people who do qualify for credit perform: approximately half of young borrowers default early in their credit journey, with most maintaining high-risk credit scores. 'This pattern underscores the urgent need for enhanced financial education and for those in distress to get into debt counselling early.' ALSO READ: Entrepreneurship a solution to youth unemployment – but there are challenges Youth make money with side hustles How do young people make their money to make ends meet? Enter the side hustle economy. Fulton points out that youth unemployment is at crisis levels, with fewer young people in formal employment now than in 2008. Harambee, an NGO focused on youth employment solutions, reports in its quarterly Breaking Barriers analysis that of the one million young people entering South Africa's labour market annually, only 40% find work in the short to medium term, while 30% find intermittent employment but remain mostly unemployed or outside education and training, 20% want to work but never find opportunities and 10% stop seeking work altogether. In addition, for those who are employed, side hustles have become essential to make ends meet. BrandMapp, a survey of South Africans in households earning over R10 000 monthly, shows a notable shift: in 2021, 55% reported having no side activities that create extra income, but this dropped to 49% in their most recent survey. The survey asks for details on these activities and the percentage of people who say they are running small businesses as a side hustle, or taking second jobs in their primary field has grown by 50%. This trend mirrors international patterns, with about 50% of millennials and 46% of Gen Z reporting side hustles. ALSO READ: Minister agrees unemployment statistics should include work in informal sector Kind of side hustles the youth choose The nature of these side hustles varies by demographic. BrandMapp data shows that 'home industry' activities are more common among black married couples, while temporary and shift work in restaurants and bars is more prevalent among white South Africans. Fulton says the intersection of limited formal employment, growing debt burdens and the rise of alternative income sources creates challenges as well as opportunities for South Africa's young people. 'In the face of considerable financial headwinds, many young people are turning to side hustles as a means of creating opportunity in a tough economy, but with the right support structures and a focus on keeping their credit history clean, this generation has the potential to drive long-term, inclusive growth.'


eNCA
21-06-2025
- Business
- eNCA
700,000 new credit individuals added in Q1
JOHANNESBURG - South Africans' love for credit shows no sign of slowing down. Research firm Eighty20 reveals that there were 700,000 new credit individuals in the first quarter of this year. That's a 27 percent increase from 2024. And total debt taken on by these new individuals? A whopping R4.8-billion. So, why are more people taking on credit in an underperforming economy? Eighty20 Managing Director, Andrew Fulton, said credit is important for a credit rating.


The Citizen
27-05-2025
- Health
- The Citizen
Rooibos, tea or coffee? What South Africans like to drink
When it comes to hot beverages, different demographic groups in South Africa tend to choose between coffee and various types of tea, including Rooibos. What do South Africans like to drink when they take a break? Some of us cannot do without the early morning pick-me-up coffee, but other drink only tea. And if they drink only tea, which kind of tea do they prefer? Eighty20 spills the tea on what South Africans like to sip by looking at the data. Andrew Fulton, director at Eighty20, says while coffee may be the go-to morning pick-me-up for many, tea remains the true global favourite, second only to water as the most consumed beverage in the world according to the International Institute for Sustainable Development (IISD). 'In South Africa, it is common to ask if people want Rooibos or regular when offering a cup of tea, and this shows how popular Rooibos is. Grown exclusively in the Cederberg region of the Western Cape, this naturally caffeine-free tea has become a global favourite. Just like Champagne, only products from this region can proudly carry the Rooibos name.' The data shows that over 22.6 million South African adults enjoy Rooibos, green tea or traditional tea every day. And they do not only stick to just one type of tea, Fulton says. Almost 30% of traditional tea drinkers also sip some Rooibos daily, and almost half of them pair their tea habits with a daily cup of coffee. Fulton says for brands this is a clear signal that tea time is all the time and for grocers, it is also important to look at complementary products, such as sugar. South Africans consume on average 4.2 teaspoons of sugar in tea, coffee, beverages or cereal per day. ALSO READ: Why experts recommend Rooibos for better health Who drinks what when it comes to coffee, tea and Rooibos tea? Coloured and Afrikaans-speaking people in the Western Cape and Free State consume considerably more, while isiXhosa and isiZulu speakers in the Eastern Cape and KZN consume considerably less. This table shows what South African consumers drank yesterday and how many chose tea or coffee. ALSO READ: Five tips to make the best cup of tea Where tea comes from When it comes to traditional tea, China is in the lead, producing nearly half of the world's tea, followed by India, Kenya and Sri Lanka (formerly known as Ceylon until 1972, a term still used interchangeably in South Africa for traditional tea). Fulton points out that tea is a massive industry, with global production valued at $17 billion, while the industry employs approximately 13 million people worldwide. Kenya is famous for its high-quality black tea, with its tea sector contributing over a quarter of the country's annual export earnings and providing employment to nearly 2 million people. South Africa's tea market is also brewing strong, projected to hit $447.29 million in revenue by 2025 with a steady annual growth of 3.07%. Joko tea and Glen tea are the market leaders for traditional teas in South Africa, while Freshpak remains the top pick for over half of all Rooibos drinkers. ALSO READ: 10 surprising facts about Rooibos More people are drinking tea Fulton says the consumption of traditional tea is increasing in East Asia, Africa and Latin America, but declining in Europe and North America. In North America, herbal teas and other ready-to-drink beverages are becoming more popular. 'This trend also positively affects our local tea substitute, Rooibos. The global Rooibos tea market is estimated to be worth approximately $1.3 billion in 2023, thanks to Rooibos Limited, the largest producer and distributor of Rooibos tea, exporting to 50 countries worldwide. What is the difference between traditional tea and Rooibos? Traditional teas like black, green and Oolong all come from the Camellia sinensis plant, but Rooibos tea is different. It is technically not a true tea but a tisane, a caffeine-free herbal infusion made by steeping plant materials in hot water. According to Fulton, people are switching to Rooibos all over the world, not only because it is a delightful drink but also due to its numerous health benefits. 'This naturally caffeine-free beverage is rich in antioxidants, helps to reduce blood pressure and improves cholesterol levels, soothes an aching stomach and can help to clear your skin.' ALSO READ: Rooibos industry paid R12 million to Khoi and San community in historic move What the data shows about tea drinkers There is also tea drinking demographics that show how much people all over the world love a cuppa. Using data from MAPS, a survey of 20 000 South Africans conducted by the MRF, Eighty20 a consumer analytics and data science agency, shows that women, Indians and Asians are over-indexed for all types of tea. The data also shows that Rooibos tea drinkers have marginally higher personal and household incomes than people who drink traditional tea, but the average household income of people who prefer green tea is nearly twice that of other tea drinkers. Green tea drinkers are also younger and better educated. Fulton says looking at the Eighty20 National Segmentation groups, poorer segments, such as the Humble Elders and Mothers of the Nation, tend to drink traditional tea, while Comfortable Retirees prefer Rooibos tea and the Heavy Hitters and Middle Class opt for green tea. This table shows the preferences of the different groups: 'Tea remains a cultural staple and commercial powerhouse in South Africa, with over 22 million adults drinking it daily. The growth of Rooibos tea locally and globally signals a shift in consumer preferences towards healthier, caffeine-free alternatives, offering valuable opportunities for brands looking to connect with evolving lifestyles and demographics,' Fulton says. NOW READ: Is coffee a luxury? Jacobs Coffee explains the price increase


The Citizen
13-05-2025
- Business
- The Citizen
Where do you shop for jeans? Survey reveals Mr Price is SA's most loved store
The survey reveals the top five loved stores as Mr Price, Ackermans, Pep Stores, Sportscene and Markham. The survey reveals that due to the affordability and accessibility of Mr Price, most consumers buy their jeans there. Followed by Ackermans, Pep Stores, Sportscene and Markham. But premium brands like G-Star and Levi's hold aspirational value. Picture: Supplied There are many reasons why interest in denim has consistently remained at the forefront of fashion; the primary one is its versatility. Men can wear jeans with a shirt and still look professional while going to work. The same outfit can be worn to a bar, and it would still be suitable. Similarly, women can wear jeans with high heels and still look respectable. Change the heels to sneakers, and go run errands. Another reason for the interest in denim is its affordability. During difficult economic times, South Africans prioritise ways to save money, and buying jeans is one of them because you can get multiple outfits for different occasions from one pair of jeans. Eighty20 and MoyaApp conducted research to understand the prevalence of denim in the country. Most jeans bought at Mr Price Andrew Fulton, director at Eighty20, said jeans are one of the most bought clothing items in the country. Premium brands like G-Star and Levi's hold aspirational value. However, it is the affordability and accessibility of retailers like Mr Price that drive volume and keep jeans in everyday wardrobes. According to the latest Maps dataset, a survey of 20 000 people released quarterly by the Marketing Research Foundation, showed the top five clothing stores in terms of number of shoppers are Mr Price, Ackermans, Pep Stores, Sportscene and Markham, with nearly one in five people shopping at one of these stores in the past quarter. 'Just like their large international counterparts (H&M, G-Star, Zara, Gap and others), it is impossible to imagine not finding some form of denim product on the shelves of any of these stores.' ALSO READ: Things getting better? Growth in consumer spending recorded 12 million adults bought jeans To get the information, 20 000 registered research panellists on MoyaApp were sent the survey. Research released in April indicates that 12 million adults in the country have purchased clothing in the past three months, with women's outerwear and children's clothing being the most popular categories. The results are based on 55% women, 45% men, and individuals between the ages of 25 and 44, with a significant proportion of younger adults (18–24). 98% of the respondents said they wear jeans daily, and 80% had purchased denim within the past six months. Most like skinny The survey also asked about preferred fit, with 58% of the respondents choosing 'skinny'. 'This strong preference appears to be driven largely by younger consumers, particularly those aged 25 to 34. 'This age group, which made up 44% of the respondents, accounted for nearly half of all skinny-fit selections and shows a clear leaning toward fitted, fashion-forward styles, solidifying their role as denim trendsetters.' ALSO READ: Research shows what SA consumers want most when buying products and services What about straight denim? The survey shows that older adults love looser fits, such as straight and relaxed styles. Meanwhile, the bootcut, once a denim staple, has fallen almost entirely out of favour. In terms of style preference, 32% opted for a dark wash, followed by 26% who preferred a light wash, and 21% who favoured a ripped or distressed look. Earlier this year, Mr Price saw gains in cash sales and online growth amid improved consumer spending. The retailer's retail sales grew by 10.6% to R14.6 billion for the third quarter of its financial year, which ended on 28 December 2024. NOW READ: Are Hermès, Louis Vuitton, and Gucci made in China? How to tell real luxury from fakes