Study shows SA has one of the lowest savings rates in the world.
The South African Investment Management Outlook 2023 published by Deloitte has confirmed that the savings rate of under 0.5%.
This means South Africa has one of the lowest rates in the world and is below that of other emerging markets.
According to the report, the national savings rate measures the income households, businesses, and governments save. It is the GDP that is saved rather than spent in an economy.
Kaya Biz with Gugulethu Mfuphi spoke to Amilah Costandius, Senior Manager: Strategy and Business Design at Deloitte Africa about the South African Investment Management Outlook 2023.
LISTEN TO THE FULL CONVERSATION HERE:
With the high cost of living in South Africa at the moment, saving money for a rainy day is little more than a dream to a lot in the country.
Costandius shared someone of the reason they found in the research that makes it difficult for many South Africans to consider.
Information overload
“It is often that you find that in the financial world, if you are confronted as a normal person walking on the street and you want to buy a savings product, with so many to choose from, it is often littered with jargon… Often South Africans are often confronted with too much information, and I would rather not go through with it.”
Low financial literacy rate
“Most of the financial institutions understand that there is a low financial literacy rate, there is often a communication gap that exists… it comes down to not understanding a customer.”
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