By Zuko Komisa
- Confidence in South Africa’s economy reached 47% its highest level since 2020 with 75% expecting their personal finances to improve.
- Credit card usage has climbed to 73%, personal loan holding has expanded to 64%, and informal mashonisa (loan shark) borrowing has spiked from 12% to 19%.
- Higher earners (R30,000+ monthly) report declining financial stress, whereas lower-income cohorts face rising stress (47%) and elevated debt burdens.
South Africans are entering the second half of 2026 with renewed optimism, yet the latest Old Mutual Savings & Investment Monitor (OMSIM) reveals a stark, widening divide across the economic spectrum.
While nearly half of working citizens feel confident about the nation’s economic prospects driven by anticipated income growth and currency stability underlying financial fragility remains widespread.
High living costs and expense pressures continue to force roughly 47% of households to dip into their savings simply to cover daily living expenses.
The Old Mutual Savings & Investment Monitor (OMSIM) report outlines an increasing reliance on both formal and informal credit as consumers try to bridge cash-flow gaps.
Store card usage has surged to 68%, borrowing from family or friends stands at 28%, and informal loans from mashonisas have jumped sharply from 12% to 19%. To cope, South Africans are actively cutting costs downgrading streaming services, switching to cheaper supermarket brands, and adjusting mobile plans while 57% have embraced side hustles to generate extra income.
Over 80% of respondents maintain clear savings goals for retirement, education, and family security, though more than half acknowledge they are currently off track.
Kaya Biz spoke to Vuyokazi Mabude, Head of Knowledge & Insights at Old Mutual, who emphasized that turning positive outlooks into lasting financial resilience requires moving from good intentions to disciplined execution:
“As South Africans across the spectrum we are seeing record levels of optimism for both men and women. Young and old people are confident in the economy, and we all know how important that is, that people think that things are going to get better. People are also optimistic about their own personal finances.
People across South Africa are doing different thing to earn income, and that optimism is backed by the fact that people are earning more money at this point in time, and that they are doing so through polly-jobbing which is basically having a side hustle, renting out their properties, as well as using social media to earn money.” says Vuyokazi Mabude
Listen to the full conversation here:
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