Tag: EconomicResilience

The Middle East conflict continues to destabilise an already volatile global economy. It is driving energy price shocks, inflationary pressure and heightened uncertainty for developing economies, particularly those exposed to energy and currency volatility. In South Africa, economic shockwaves continue to drive up fuel prices, strain energy systems and push the cost of living beyond reach.

A few months into the year, financial pressure begins to feel different. School fees become due, winter expenses approach and transport costs continue to rise. Meanwhile, January’s financial resolutions begin competing with everyday survival. Rarely does one major expense disrupt financial discipline. Instead, the steady friction of small, unavoidable costs slowly chips away at our best intentions.

For years, a familiar narrative has shaped our understanding of South African consumers. It suggests they are over-indebted, under-saving and prone to conspicuous consumption. Statistics often reinforce this view. These include low household savings rates, rising unsecured lending and high levels of personal debt. On the surface, the conclusion seems obvious. However, it remains incomplete.

The 2026 National Budget Speech was delivered by Finance Minister Enoch Godongwana on 25 February. He delivered the 2026 budget speech against a backdrop of complex fiscal trade-offs. South Africa continues to face high debt-servicing costs. As a result, the government’s capacity to act as the primary buffer against economic shocks has become more constrained. Therefore, the 2026 budget speech highlights the growing importance of shared responsibility across the broader economy.