Latest news with #Eighty20
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.'
The Citizen
5 days ago
- Climate
- The Citizen
Top 10 stories of the day: 24-year-olds in debt
Here's your daily news update for Monday, 23 June 2025: An easy-to-read selection of our top stories. In the news today, a report has revealed that many individuals between the ages of 18 and 24 are defaulting on their credit repayments, while some are not credit-active at all. Meanwhile, President Cyril Ramaphosa has called for dialogue between Israel and Iran, warning that continued conflict will only lead to further devastation and economic fallout across the globe. Furthermore, Phakaaathi looks at five things you might not know about the 46-year-old new Buccaneers coach. Weather tomorrow: 24 June 2025 Very cold, wet and windy weather is expected in Western Cape, Northern Cape and Eastern Cape from Wednesday. A level 2 warning has been issued for damaging waves between Plettenberg Bay to East London. Full weather forecast here. Stay up to date with The Citizen – More News, Your Way. What does the future hold for the youth? Most 24-year-olds in debt It was the first democratic president of South Africa, Nelson Mandela, who said, 'The youth of today are the leaders of tomorrow.' However, in a period when most of the youth are battling with a high level of debt, unemployment, and limited asset ownership, does the idea that the youth will lead still stand? For illustrative purposes. Picture: iStock A report by Eighty20 has revealed that many individuals between the ages of 18 and 24 are defaulting on their credit repayments, while some are not credit-active at all. '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%, financial strain is widespread in this age group,' Andrew Fulton, Director at Eighty20, said. CONTINUE READING: What does the future hold for the youth? Most 24-year-olds in debt Ramaphosa calls for dialogue to end Israel-Iran conflict The South African government said it has 'noted with a great deal of anxiety' the entry of the US into the Israel-Iran war. The Presidency issued a statement on Sunday, just hours after US President Donald Trump said his country had struck three nuclear sites in Iran on Saturday night. President Cyril Ramaphosa. Picture: @GovernmentZA / X Trump said the facilities at Fordow, Natanz and Isfahan were 'completely and totally obliterated' and warned of further attacks if Tehran refused to 'make peace'. President Cyril Ramaphosa's spokesperson, Vincent Magwenya, said Ramaphosa has called for dialogue between Israel and Iran, warning that continued conflict will only lead to further devastation and economic fallout across the globe. CONTINUE READING: Ramaphosa calls for dialogue to end Israel-Iran conflict Ouadd-who? Five things you may not know about the new Pirates coach Orlando Pirates sprung a surprise on Monday as they announced Moroccan Abdelsam Ouaddou as their new head coach. Here, Phakaaathi looks at five things you might not know about the 46-year-old new Buccaneers mentor. Ouaddou had a fine career as a centre back for club and country. Between 2001-2003, he played in the English Premier League for Jean Tigana's Fulham. Abdeslam Ouaddou was announced on Monday as the new Orlando Pirates head coach. Picture: Grant Pitcher/Gallo Images 'Without a doubt, the Premier League was the pinnacle of my career. Its unmatched player quality, electrifying fan atmosphere, and impeccable organisation made it an unforgettable experience,' Ouaddou told He captained Morocco at the 2004 Africa Cup of Nations in Tunisia, and led the team all the way to the final, where they were beaten 2-1 by the tournament hosts. CONTINUE READING: Ouadd-who? Five things you may not know about the new Pirates coach DA anniversary: Can a 'white party' govern SA again? Twenty five years since the DA was formed, the party is still trying to convince South Africans that they are not a whites-only party. Over the years, the party has seen many prominent black leaders leave for various reasons, including Mmusi Maimane, Herman Mashaba, Lindiwe Mazibuko, Mbali Ntuli, and former Midvaal mayor Bongani Baloyi. Democratic Alliance flag. Picture: @Our_DA/Twitter Solomon said black leaders do not seem to have strategic positions in the party, which could easily create an impression that the party only really serves one racial group. 'Voters may need to see better integration. This may require the Federal Chair to be one racial group, the Chief Whip of another group, and the leader of a completely different group. CONTINUE READING: DA anniversary: Can a 'white party' govern SA again? Tensions rise again in Senzo Meyiwa murder trial over 'hired gun' remark, evidence tampering claims Tensions flared once more during the Senzo Meyiwa murder trial as a defence lawyer stood firm on a comment directed at a state witness. Proceedings resumed on Monday at the Gauteng High Court in Pretoria, with the cross-examination of Sergeant Moses Mabasa continuing. The accused speak with their legal representatives during the Senzo Meyiwa murder trial at Pretoria High Court on 18 April 2024. Picture: Gallo Images/Phill Magakoe Mabasa, a data analyst with the South African Police Service (Saps), has been testifying about images retrieved from the cellphone of accused number three, Mthobisi Mncube. Last week, Mncube's legal representative, Advocate Charles Mnisi, challenged the authenticity of the photographs found on his client's phone, questioning the dates. Mnisi also referred to Mabasa as a 'hired gun' for the Monday, Advocate Ronnie Sibanda, acting for the prosecution, requested Mnisi withdraw the remark. CONTINUE READING: Tensions rise again in Senzo Meyiwa murder trial over 'hired gun' remark, evidence tampering claims Here are five more stories of the day: Yesterday's News recap READ HERE: Top 10 stories of the day: Shivambu appeals for volunteers | US strikes Iran | Record price for Clifton apartment
The Citizen
5 days ago
- Business
- The Citizen
What does the future hold for the youth? Most 24-year-olds in debt
Nearly half of the credit-active youth have defaulted on their loans. It was the first democratic president of South Africa, Nelson Mandela, who said, 'The youth of today are the leaders of tomorrow.' However, in a period when most of the youth are battling with a high level of debt, unemployment, and limited asset ownership, does the idea that the youth will lead still stand? A report by Eighty20 has revealed that many individuals between the ages of 18 and 24 are defaulting on their credit repayments, while some are not credit-active at all. Eighty20's National Segmentation was published earlier this month. It utilises a combination of strategy, analytics, research, and development capabilities. ALSO READ: Most South Africans use personal loans to make ends meet Debt among the youth Andrew Fulton, Director at Eighty20, said those aged 24 and younger make up 44.5% of the population, which raises the question of whether this generation can break the cycle of financial exclusion that currently defines their prospects. Eighty20's National Segmentation showed that only one million of the 6.7 million youth aged 18-24 are credit active. This can be reasonable, given that most of these individuals are still in university or are still seeking employment. However, the alarming thing is that among the one million that are credit active, nearly half have 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%, financial strain is widespread in this age group.' The debt burden Fulton highlighted that 85% of the credit-active youth hold store accounts. This is followed by personal unsecured loans, with 17% of the youth and 9% holding credit cards. 'Youth represent approximately 4% of South Africa's total outstanding debt, carrying R10 billion in combined obligations. 'However, 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.' ALSO READ: Tips on how to shape your credit score Credit score '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 cell phone contracts, rental agreements, and can even influence employment opportunities,' highlighted Fulton. He emphasised that expanding credit access among young adults represents both individual economic empowerment and broader development of the formal economy. A further challenge, however, lies in the performance of those with credit: approximately half of young borrowers default early in their credit journey, with most maintaining high-risk credit scores. 'This pattern highlights the urgent need for enhanced financial education and for individuals in distress to seek debt counselling early.' The side hustle economy Youth unemployment is at crisis levels, with fewer young people in formal employment now than in 2008. Most young people rely on side hustles to make ends meet. 'BrandMapp, a survey of South Africans in households earning more than 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%. NOW READ: Here's how South Africans can benefit from side hustles
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
29-05-2025
- Health
- The Citizen
Why rooibos could be the world's peace offering
Tea, especially rooibos, is a symbol of comfort and peace. In a world that's losing its calm, it might just be our simplest solution. It seems logical that a brand like Coca-Cola – which dominates the soft drink market globally – would have few real competitors in the sector. Yet executives will admit that consumption of coffee and tea is what really worries them. The reality is that, for all the options out there, tea is still second only to water as the most consumed drink in the world. It's no different in South Africa, where, according to research company Eighty20, more than 22.6 million South African adults enjoy rooibos, green tea or traditional tea every day. ALSO READ: Rooibos, tea or coffee? What South Africans like to drink Almost half of them also enjoy a daily cup of coffee, and 30% of traditional tea drinkers also sip some rooibos daily. Rooibos, of course, is that uniquely South African brand of herbal tea grown in the Cederberg region of the Western Cape… and which is an acquired taste, shall we say. Fans of the herb tea – and their legions are growing around the world as it is exported to more than 50 countries – believe rooibos has significant health benefits, being caffeine-free and high in antioxidants. Whatever your preference, you cannot deny that an inviting cuppa helps soothe the nerves. Maybe the world should make tea, rather than make war… NOW READ: Another victory for Rooibos as study finds that tea is good for the heart
