Tag: debt

South Africa takes on the presidency of the Group of 20 (G20) in 2025 with six headline priorities. These include debt sustainability for low-income countries, mobilising finance for a just energy transition, food security, disaster resilience and digital infrastructure. Among these, payment reform is the one that businesses in the country will feel most directly.

The South African Reserve Bank (SARB) recently signalled its intention to target the lower band of the 3% to 6% inflation range. Previously, the Bank adopted the mid-point of 4.5% as its formal objective in 2019. This shift shows a deliberate effort to anchor investor expectations closer to 3%. It may also reshape long-term assumptions about South African inflation as SARB focuses on targeting the lower inflation band.

South Africans are significantly indebted, with a large portion of their monthly income going toward servicing debt. This means that for every R100 of disposable income, South Africans currently owe R62.70. We’ve observed a combination of high interest rates, rising living costs and slow income growth driving the high levels of indebtedness.

Credit has long had a bad reputation. For years, it has been associated with financial distress, risky decisions and debt traps. But South African women are rewriting that narrative. Through careful, deliberate borrowing, many are using credit as a tool for resilience – enabling education, covering unexpected emergencies and building a more financially secure future for their families.

The South African Revenue Service (SARS) is no longer the passive revenue service many South Africans remember. With an injection of R3.5 billion from the national budget and the ominous launch of “Project AmaBillions”, SARS has entered its most aggressive enforcement phase in years.

In response to an increasingly volatile economic landscape, South African businesses are turning to trade credit insurance. They use it as a strategic tool to safeguard their operations against the risks of non-payment and insolvency. This surge in uptake of trade credit insurance reflects a growing recognition of its critical role.

In today’s unpredictable and fast-paced world, achieving financial success requires more than just saving money or investing in the latest trend. A truly secure financial future is built on a holistic approach that integrates various aspects of financial planning.

Modern monetary theorists argue that nations with monetary sovereignty can never run out of money to fund projects. They can always issue more currency whenever they need it.

Small and medium enterprises (SMEs) in South Africa struggle to secure funding. Traditional banks fail to meet their debt capital needs. Fewer than 15% of SMEs access debt funding from banks, excluding overdraft facilities. Alternative lenders also fall short in meeting SME lending demands. The International Finance Corporation estimates a $30 billion (ZAR 550 billion) funding gap for South African SMEs.

The 2025 Budget Speech outlines significant opportunities for South Africa’s private renewable energy sector. These opportunities include streamlined public-private partnership (PPP) regulations, expanded infrastructure investment and greater clarity around grid upgrades. However, it also raises important concerns for private developers and investors.