Recent studies show that nearly half of South African adults are reportedly borrowing money to afford groceries.
According to the FinScope Consumers South Africa 2023 Survey which was released yesterday, 40 percent of consumers are using credit for household necessities. While two out of five individuals have gone without electricity in the past 12 months due to the lack of affordability.
Senior Data and Analytics Specialist at FinMark Trust, Jabulani Khumalo, says the country’s energy crisis and the effects of COVID-19 are some of the contributing factors.
“From the data, the living costs are rising against a fixed salary, leaving most people with less disposable income and very limited resources to cover monthly living costs. As a result, 38% or around 17 million adults’ income is not enough for living expenses; therefore, it is not surprising that 40% of adults are reported to be borrowing money for food.”
PODCAST | Below is the full interview with Jabulani Khumalo:
