Zuko Komisa

40% of adults are reportedly resorting to borrowing money to buy food.
Many South Africans are struggling to put food on the table due to rising living costs and are now taking out loans only to pay for groceries.
The FinMark Trust annual FinScope Consumer South Africa 2023 report, which was made public on Tuesday, states as much. According to the report, 40% of adult South Africans take out loans to pay for food.
Point of View with Phemelo Motene spoke to the Head of the Financial Inclusion Programme South Africa at FinMark Trust, Lesego Mashigo about this new phenomenon.
Listen to the full conversation here:
Consumption and living expenses the biggest expense
“South Africans in 2023, 24% of their money went into consumption and living expenses, 4,1 % of their money went into insurance and medical aid, 6% went into education, and 2.4% went into debt, while 3% went into savings. If you break that down, consumption and living expenses, the majority of it is going to food and energy, 30% goes to food and 11% goes to energy.”
86% of our population doesn’t have a retirement plan
Lesego Mashigo stated that 86% of adult South Africans are working and have no retirement plan. Furthermore, 6.8 million persons in South Africa (15%) make their living from tips.
With only 24% of South Africans categorized as financially healthy, 43% as financially coping, and 33% as financially susceptible, the country’s overall financial well-being is declining. Compared to 2022, when 31% were financially sound, 35% were coping, and 34% were financially vulnerable, this indicates a change in the data.
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