South Africa’s middle class is in deep trouble

Loading player...
GUEST – Andrew Fulton, Director at Eighty20

Eighty20 has released its 2023 Q4 Credit Stress Report (CSR) in collaboration with Xpert Decision Systems
(XDS) outlining developments in the credit sector as well as its impact on the economic landscape. The 2023 Q3 analysis brought a glimmer of hope to South Africa's credit sector for the first time in years.

This optimism was short-lived as Q4 highlighted a blend of both positive and negative indicators with the unemployment
rate increasing slightly, inflation creeping up, and consumer confidence dipping down again.

Despite this, there was a significant improvement within the credit sector as the percentage of loans in arrears
decreased by a full percentage point. Although our economy bounced back to its pre-Covid level in mid-2023, there was a 0.3% decline in GDP during Q3 of 2023, raising concerns of being at risk of a recession when the GDP figures are released on March 5th.
The UK has already slipped into a technical recession, and globally, theoutlook remains bleak.
21 Mar 2024 4PM English South Africa Business News · Investing

Other recent episodes

IDC Swings to a FY Loss of R4.6bln on Subsidiary Pressure

The Industrial Development Corporation released its 2026 financial results, showing R17 billion disbursed, R28 billion mobilised in co‑funding, and R2.3 billion in Company-level profit, despite a challenging industrial environment marked by weak fixed investment, global trade uncertainty, and pressure on export-oriented sectors. There remains pressure at headline level as it…
27 Aug 1PM 13 min

Clicks Taps Into South Africa’s Township Economy

Clicks CEO Bertina Engelbrecht breaks down the launch of KwaMakhi a new township‑focused retail format designed for high‑density, lower‑income communities. She explains why Clicks is expanding beyond traditional malls, how KwaMakhi differs from standard stores, and what this means for healthcare access in areas like Alexandra, Soweto, Tembisa and Khayelitsha.
27 Aug 12PM 10 min

Grindrod’s Record Volumes & Rail Future: CEO Kwazi Mabaso on H1 2026

Grindrod CEO Kwazi Mabaso unpacks the Group’s strong interim performance — including record 8.4 million tonnes at the Port of Maputo, a 52% surge in EBITDA, and resilient drybulk throughput across SA terminals. We explore safety improvements, logistics challenges, locomotive redeployment, and major strategic projects like the Matola expansion and…
27 Aug 12PM 14 min

Real Salaries Lift — But Households Still Under Pressure

July brought rare relief as nominal net salaries edged up to R21,642 and real salaries improved for the first time in nine months. But with year‑to‑date salary growth at just 1.6% and real earnings still 2.2% below last year, households remain stretched. Elize Kruger breaks down wage trends, inflation dynamics,…
26 Aug 1PM 10 min

Inside Absa’s Tech Leap: AI, Speed & 99.97% Reliability

Absa’s digital transformation is delivering real‑world outcomes: SME account‑opening times have collapsed from two days to under 30 minutes, credit decisioning now takes just four hours, and AI is reshaping customer service, debt review and employee productivity. Johnson Idesoh unpacks how Absa achieved 99.97% availability, boosted Rewards membership by 430,000,…
26 Aug 12PM 15 min