Tag: interest rate

The operating environment during the first half of the year was challenging. Uncertainty around US policies, especially tariffs and ongoing geopolitical conflicts, caused significant volatility in financial markets. These factors also reduced business confidence.

By 2030, Generation Z (Gen Z) will be the biggest-spending generation across much of Sub-Saharan Africa. Already, South Africa's youngest consumers are transforming how the country pays. I have seen that for Gen Z, speed, choice and digital convenience are not just nice to have. They are non-negotiable.

Astute property buyers are increasingly viewing pre-approval for home loans as the first step in the purchasing process. This step helps each buyer understand their budget. It also makes their offer more attractive to sellers.

South Africa’s economic landscape is challenging even the most resilient consumers. In recent years, high inflation and soaring interest rates have taken a toll. At the same time, stagnant economic growth, rising fuel prices and a weaker rand are putting tremendous pressure on household finances.

Retail discounters show double-digit growth while e-commerce continues its surge. Our new grocery retail data reveals key shifts in South Africa’s FMCG retail landscape, with discounter and e-commerce formats outperforming other channels in 2024. Despite easing inflation, South African shoppers remain under economic pressure, leading to changing missions, increased cross-channel behaviour and format diversification among major retailers.

The repo rate, inflation and the Reserve Bank’s decisions all play a role in shaping our finances, from savings and loans to monthly payments. Understanding how these factors influence our financial well-being can help us make informed decisions and prepare for economic changes.

Forecasting economic and market variables is inherently difficult. Forecasting is tough. Research suggests that only 23% of professional forecasts prove accurate. Add in US policy uncertainty - President Trump signed a flurry of executive orders on his first day in office. As a result, predicting the outlook for the global economy becomes even more challenging than usual.

The 2025 national budget speech has been delivered. As a result, predictions suggest possible PAYE and VAT increases. These forecasted hikes signal tighter financial conditions for consumers. In response, maintaining a strong credit score has become more critical than ever. It’s not just key for accessing loans. Importantly, it also shapes employment prospects and long-term financial security.

South Africa’s major banks maintained steady growth in 2024 despite a challenging operating climate and macroeconomic uncertainties. Combined headline earnings grew by 5.9%, reaching R119 billion. This surpassed FY23 results. The combined ROE stood at 17.5% (FY23: 17.6%). The net interest margin was 451 bps (FY23: 459 bps). The credit loss ratio improved to 89 bps (FY23: 102 bps).

Periods of market turbulence have long tested investor conviction. When uncertainty grips financial markets, traditional portfolios often reveal vulnerabilities. Recently, shifting US policies, fluctuating interest rates and geopolitical tensions have driven this uncertainty.