MyZA

News, Directory, Events and Other Stuff

You are here: Home / Archives for Africa

Africa

Day of the Vow 1838: An Eternal Covenant of Faith, Survival and Identity for the Afrikaner

Location: News

Today, 16 December, we commemorate the Day of the Vow – the day in 1838 when the Voortrekkers, led by the likes of Andries Pretorius and Sarel Cilliers, made a sacred vow to God before the Battle of Blood River. They promised that, if God granted them victory over a mighty enemy, they would annually […]

The post Day of the Vow 1838: An eternal covenant of faith, survival and identity for the Afrikaner appeared first on Freedom Front Plus.

Read moreDay of the Vow 1838: An Eternal Covenant of Faith, Survival and Identity for the Afrikaner

South Africans Are Becoming More Credit Savvy, But There’s Room to Grow

Location: Business

As financial awareness continues to grow across South Africa, new insights from TransUnion’s Q1 2025 Consumer Pulse Study reveal encouraging signs that more consumers are actively taking control of their credit health.

According to the Consumer Pulse Study, nearly one in three South Africans (31%) check their credit reports on a monthly basis, a significant step in the right direction. More than half (54%) of those who check their reports do so with the intention of improving their credit scores, showing a shift toward long-term financial empowerment.

“We’re seeing a rise not only in credit awareness, but in the importance of checking and understanding your credit report, which is an incredibly positive sign,” says Fatgie Adams, Head of Credit Risk Solutions at TransUnion Africa. “Knowing your credit report and credit score is one of the simplest yet most powerful ways to take control of your financial future. It opens the door to better lending rates, protects against fraud, and supports better decision-making.”

A deeper understanding of how to read the data on your credit report is also essential. A credit report provides a snapshot of your credit activity and how lenders perceive your creditworthiness. It typically includes information like:

  • Credit accounts: Active credit lines, such as loans, credit cards, and retail accounts.
  • Payment history: A record of whether payments have been made on time or not.
  • Credit inquiries: Details of companies that have reviewed your credit in recent months, usually as a result of a credit application.
  • Credit utilisation: The ratio of the credit you’re using versus your total available credit, which impacts your score.
  • Outstanding debt: Current balances and any overdue amounts on existing credit lines.

By learning to read this data, consumers can spot potential errors, identify areas for improvement, and gain insights into how their credit management practices impact their scores. Understanding these elements not only helps improve your score but also boosts your financial confidence when applying for loans or credit.

While this progress is encouraging, the study also highlighted opportunities for deeper financial vigilance. Only 34% of consumers currently check their credit reports as a means of fraud prevention. Notably, although 50% of respondents reported being targeted by scams or fraud in the past three months, but did not fall victim, indicating a promising increase in consumer awareness and resilience

With 37% of South Africans planning to apply for new or refinanced credit in the next 12 months, understanding one’s credit standing and how to interpret the information on your credit report becomes even more crucial, particularly in today’s challenging economic climate.

“We encourage consumers to make credit report checks part of their regular financial routine,” adds Adams. “It takes just a few minutes and it’s one of the most effective tools for staying financially fit and fraud aware.”

Quick Tips for a Healthier Credit Score

  • Pay on time: Late payments can negatively impact your score. Consistent, timely payments are crucial!
  • Keep credit usage low: Aim to use less than 30% of your available credit to maintain a healthy score.
  • Check your report regularly: You’re entitled to one free TransUnion credit report each year. Regular checks help you stay informed.
  • Dispute any errors: Incorrect details can unfairly impact your score. TransUnion offers free dispute services to correct inaccuracies.
  • Limit new credit applications: Too many at once can lower your score. Be mindful of how often you apply for new credit/ loans.

To check your credit score for free and learn more, visit www.transunion.co.za.

Read moreSouth Africans Are Becoming More Credit Savvy, But There’s Room to Grow

South Africa’s Auto Sector Sees Strong Growth Amid Evolving Consumer and Insurance Trends

Location: Business
  • New passenger car sales hit multi-year highs, totalling 102,268 units in Q1 2025
  • Younger buyers and budget-conscious consumers reshape the financing and brand landscape
  • South Africa’s younger car buyers are turning to TikTok, Instagram, and YouTube, reshaping the automotive marketing playbook
  • New insights on insurance trends highlight growing risk of uninsured vehicles

The latest TransUnion South Africa Mobility Insights Report (formerly the Vehicle Pricing Index) for Q1 2025 highlights a strong rebound in the country’s automotive market. This recovery has been driven by improved consumer sentiment, declining interest rates, access to retirement savings through two-pot withdrawals, and rising real wages. According to naamsa data, new passenger vehicle sales continued their upward trajectory in the first quarter, with monthly volumes averaging over 34,000 units, the highest levels seen since Q3 2015.  

Affordability remains a key driver of vehicle purchasing and financing decisions. Creative financing options, longer ownership cycles, and the growing availability of value-oriented models are significantly reshaping consumer behaviour, particularly among younger and first-time buyers. The Q1 2025 TransUnion South Africa Mobility Insights report highlights that several emerging brands offering competitively priced vehicles have recorded strong year-over-year growth, contributing to the overall surge in new vehicle sales.

“South African consumers are returning to the vehicle market with a clear focus on value and flexibility,” says Lee Naik, CEO TransUnion Africa. “We’re seeing a continued shift away from traditional premium segments in favour of more accessible alternatives that meet evolving needs and budgets.”

Insurance Trends Reveal Shifting Landscape and Rising Risk

The Q1 2025 report introduces new data on insurance-linked vehicle asset finance (VAF). As of early 2025, only 39% of insured vehicle owners had financed vehicles, down from 44% in 2020. This signals a rise in alternative financing or lapses in insurance post-purchase, especially concerning as TransUnion’s  2024 Insurance Survey found that 25% of vehicle users had driven uninsured in the past six months.

This trend has implications for lenders, who face greater asset risk in the event of write-offs without insurance recovery, and for insurers, whose portfolios may now carry increased exposure. To mitigate these risks, strategies such as bundled insurance, usage-based coverage and low-cost flexible insurance models are growing in relevance.

Used Vehicle Momentum Slows as New Sales Lead Recovery
While used vehicles have dominated financing trends in recent years, Q1 2025 marked a notable shift back toward new vehicle purchases, driven by easing interest rates, improved entry-level model availability, and aggressive manufacturer incentives. Notably, the influx of competitively priced Chinese models has attracted budget-conscious buyers away from the used market, fuelling fresh growth in new vehicle registrations.

“Consumers are holding onto their cars for an average of six to eight years, compared to the previous five years, a trend that reflects affordability constraints and a more cautious approach to ownership,” says Naik.

Affordability and Flexibility Drive Change
The report reveals that shifting consumer preferences are reshaping the competitive landscape, with some established manufacturers experiencing year-over-year sales declines while more affordable and value-driven entrants continue to gain market share.

“The definition of value is changing,” says Naik. “It’s no longer just about the price tag, it’s about financing flexibility, long-term ownership costs, and trust in the product. That’s what’s driving consumer decisions today.”

Social Media's Growing Influence on South African Car Buyers

Generation Z’s1 rising influence, with a 27.9% year-on-year increase in vehicle finance volumes, highlights why social media has become essential for automotive brands aiming to attract younger buyers. As South Africans spend over 3.5 hours daily on platforms like TikTok, Instagram, and YouTube, 76% of users now turn to social media for product research, pushing automotive brands toward digital-first strategies with influencer campaigns, short-form videos, and interactive content, yet South Africa’s low social media ad spend signals a major untapped growth opportunity for marketers.

Social platforms are reshaping how South African consumers research, engage with, and purchase vehicles, particularly among Gen Z and Millennials1 who expect personalised, digital-first experiences. To stay competitive, brands are adopting influencer collaborations, platform-specific strategies, AI-enabled targeting, and immersive tools like augmented reality and virtual reality. Social commerce is gaining ground as buyers look for seamless, in-app journeys from browsing to booking.

Economic Outlook: Growth with Caution
The broader economic outlook for South Africa in 2025 remains cautiously optimistic, with GDP expected to grow by 1.4%, driven primarily by household consumption. While industrial output remains under pressure, consumer-driven sectors, particularly retail and vehicle sales, continue to show resilience. Vehicle export activity rose modestly by 0.4% year-over-year in Q1 2025, signalling a gradual recovery following the sharp decline in the previous quarter.

“The strong recovery in new vehicle sales is a positive sign,” says Naik. “But sustaining this growth will require policy certainty, infrastructure investment, and structural reforms. Without these, the economy remains vulnerable.”

“The South African automotive sector is adapting to new consumer behaviours and market forces. The insurance gap, affordability options, credit access and rising Gen Z1 participation will shape the road ahead. Collaboration across industry players is vital for long-term growth,” concludes Naik.

Read the full TransUnion South Africa Mobility Insights Report  here.

1 Generation X (Gen X): Born 1965–1980; Millennials (Gen Y): Born 1981–1996; Gen Z (Generation Z) Born 1997–2012

ENDS

Notes to Editors: To provide you with timely market insights, we are updating our reporting structure.

Starting this quarter, the Vehicle Pricing Index will be renamed the TransUnion South Africa Mobility Insights Report, reflecting our broader focus on mobility trends. Vehicle Finance data will now be included in the TransUnion South Africa Industry Insights Report (IIR).

Read moreSouth Africa’s Auto Sector Sees Strong Growth Amid Evolving Consumer and Insurance Trends

Bondi Beach Attack: An Assault on People and Their Values

Location: News

The Freedom Front Plus (VF Plus) strongly condemns the terror attack today at Bondi Beach in Sydney, Australia. The attack, shortly before Christmas, was not only an assault on the Jewish community, but also on a global value system grounded in freedom, democracy and human rights – a system that poses a threat to radical […]

The post Bondi Beach attack: an assault on people and their values appeared first on Freedom Front Plus.

Read moreBondi Beach Attack: An Assault on People and Their Values

More Than Two-Thirds of South Africans Said They Were Recently Targeted With Fraud

Location: Business
  • 68% of South Africans reported they were targeted by email, online, phone call or text messaging fraud from August to December 2024 but did not become a victim
  • Phishing, smishing and third-party seller scams on legitimate retail websites were the most frequently cited methods consumers said fraudsters used to trick them
  • In 2024, gaming (online betting, poker etc) had the highest suspected digital fraud attempt rate in South Africa

Sixty-eight percent of South Africans TransUnion surveyed from 21 November to 9 December 2024 indicated that they had been targeted by email, online, phone call or text messaging fraud in the last three months, with 13% saying that they had become victims. Among those who said they were targeted, the most common reported schemes were phishing, where fraudulent emails, websites, social posts or QR codes are meant to steal personal data (33%), smishing where fraudulent text messages try to trick the user into sharing data (31%), and third-party scams on legitimate online retail sites (28%).

In a separate question in that same survey, one third (33%) said that they had lost money to email, online, phone call or text messaging fraud in the last year. Nearly one third (32%) of those who said they lost money reported it happening via third-party seller scams on legitimate online retail sites. This was followed by 26% who lost money via money mule scams where users are solicited to transfer or move illegally acquired money on behalf of someone else, and 23% who lost money via stolen credit card or fraudulent charges.

These and other findings came from research used for building the newly released TransUnion (NYSE: TRU) H1 2025 Update to the State of Omnichannel Fraud Report, which shows how South African consumers continue to be targeted by fraudsters through a wide range of channels.

“With South Africa having the second greatest number of smartphone connections in Sub-Saharan Africa, with people using mobile phones to conduct their everyday business, connect with friends, or keep in touch with family, it’s easy to understand why digital fraud would be such a common tactic among fraudsters targeting this region,” said Amritha Reddy, senior director of fraud solutions at TransUnion Africa. "While cybercriminals will attack at any time using any channel, they appear to focus on channels most popular in the regions they are targeting.”

Nearly one third (31%) South African respondents indicated that they were not aware of being targeted by email, online, phone call or text messaging fraud at all, which raises questions as to whether these respondents were in fact targeted, yet simply unaware of the threat.

Based on the TransUnion study, South Africa had the greatest percentage of respondents among countries surveyed in Africa who said they fell victim to email, online, phone call or text messaging fraud in the second half of 2024. In contrast, Zambia had the lowest percentage of consumers who said they fell victim to fraud in the countries surveyed in Sub-Saharan Africa.

Table 1: Fraud Types Most Frequently Used to Target Consumers in Sub-Saharan Africa in the Last Three Months

Country Targeted and fell victim Targeted but didn’t fall victim Not targeted Most reported fraud scheme
South Africa 13% 55% 31% Phishing
Kenya 11% 71% 19% Smishing
Namibia 11% 52% 37% Vishing
Rwanda 10% 57% 33% Money mule
Zambia 9% 70% 21% Smishing

   Source: TransUnion Consumer Pulse Survey of 1,000 people in South Africans in December 2024

Communities and Video Gaming Among Top Industries Targeted by Suspected Digital Fraud

Globally, TransUnion determined that communities (online forums and dating sites) experienced the highest rate of suspected digital fraud[1] attempts in 2024. Nearly 12% of all attempted transactions within communities last year were suspected to be digital fraud. This was closely followed by video gaming (11%), with gaming (including online betting, poker, etc.) at 8% and retail (8%) rounding out the top four.

The logistics industry, which has seen growth in shipping fraud (often perpetrated by organised crime rings), saw the greatest suspected digital fraud volume growth globally in 2024, up more than 100% over 2023. That being said, the fraud rate remains at a relatively modest 3%. Gaming also saw a significant year-over-year (YoY) volume change, up 20%. Telecommunications (-79%), insurance (-29%) and video gaming (-23%) saw the greatest decreases in suspected digital fraud volume YoY.

“Digital fraud on community platforms is by no means a new phenomenon. In 2024, it appears that fraudsters targeted these areas with a renewed vigour,” said Reddy. “Cybercriminals take advantage of the trust inherent on community-based platforms, and target members with a wide range of scammer solicitations, the most reported type of digital fraud in communities.”

For attempted transactions where the consumer or fraudster was located in South Africa, gaming experienced the highest suspected digital fraud rate in 2024 at 6.3% with an 8.1% decrease in the volume of suspected digital fraud from 2023. The only South African industries in which suspected digital fraud increased YoY were insurance and communities.

“It is encouraging to see that attempts at digital fraud have decreased across all but two of the surveyed industries in South Africa,” Reddy says. “Organisations that draw on identity, device and behavioural insights to help them interact with legitimate consumers while mitigating fraud risk are more likely to protect themselves and their customers from the scourge of digital fraud.”

Table 2: Highest Digital Fraud Rates Across Leading Industries in South Africa

Industry

Suspected digital fraud attempt rate 2024

Change in volume of suspected digital fraud attempts from 2023 to 2024
Gaming

6.3%

-8.1%
Telecommunications

6.2%

-58.5%
Financial services

6.1%

-29.6%
Video gaming

6.0%

-67.2%
Insurance

5.6%

166.5%
Communities

5.0%

4.0%
Retail

2.9%

-8.9%
Travel & leisure

0.5%

-87.0%

Source: TransUnion TruValidate™

Fraud Comes with a Heavy Cost to Consumers

Consumers faced significant losses due to fraud. Among consumers TransUnion surveyed in 18 countries and regions in November and December 2024, 29% said they lost money due to email, online, phone call or text messaging fraud in the last year. The survey determined that the median amount those consumers said they lost due to fraud in the past year was R32,447. For those who said they lost money due to fraud in South Africa, the median stated amount lost was R12,518[2].

TransUnion came to its conclusions about digital fraud based on intelligence from TransUnion TruValidate.

Specific country and regional data in the report includes South Africa, Botswana, Brazil, Canada, Chile, Colombia, the Dominican Republic, Guatemala, Hong Kong, India, Kenya, Mexico, Namibia, the Philippines, Puerto Rico, Rwanda, Spain, the United Kingdom, the United States and Zambia. Download the TransUnion H1 2025 Update to the State of Omnichannel Fraud Report for more information and insights about the global fraud trends.
 

[1] The rate or percentage of suspected digital fraud attempts reflects those which TransUnion customers determined met one of the following conditions: 1) denial in real time due to fraudulent indicators, 2) denial in real time for corporate policy violations, 3) fraudulent upon customer investigation, or 4) a corporate policy violation upon customer investigation — compared to all transactions assessed. The country and regional analyses examined transactions in which the consumer or suspected fraudster was located in a select country or region when conducting a transaction. Global statistics represents every country worldwide and not just the select countries and regions.

[2] Based on the exchange rate on 6 Jan. 2025

Read moreMore Than Two-Thirds of South Africans Said They Were Recently Targeted With Fraud

New Telco-Powered Credit Score Set to Transform Access to Finance for Millions of South Africans

Location: Business
  • TransUnion Africa, MTN and its digital platform business, Chenosis, are collaborating to harness mobile network data, setting a new standard for financial inclusion and responsible lending
  • A new alternative scoring solution, powered by Call Data Records (CDR), will help millions of financially excluded South Africans gain access to credit
  • By incorporating non-traditional data based on consumer consent, lenders can make more accurate and fair credit decisions, reducing risk while increasing approval rates

TransUnion Africa, in partnership with MTN and Chenosis, has launched CreditVision® Telco Data Score, a first-of-its-kind credit scoring solution that uses mobile phone call data records to help millions of South Africans with limited or no formal credit history gain access to financial services.

This alternative data scoring model leverages Call Data Records (CDR), which reflect patterns in mobile phone network usage behaviour and correlates it to an individual’s financial behaviour. By using telco data as a proxy for financial reliability, the CreditVision Telco Data Score enables lenders to accurately assess New-to-Credit (NTC) consumers and expand access to safe, affordable credit.

Helping the Financially Excluded

According to TransUnion estimates, over 1.4 million credit-invisible South Africans open new credit accounts each year, contributing to more than four million new accounts over the past three years. Yet traditional scoring models often fail to assess this segment accurately, leaving more than 16 million adults outside the formal credit system.

Approximately 35% of New-to-Credit consumers are under the age of 25, many of whom are new to the workforce and often use credit to buy clothing for work, highlighting the need for innovative tools that support younger, digitally active individuals who may lack a conventional credit footprint. Successfully integrating these and other excluded consumers into the economy could add approximately R173 billion1 to South Africa's GDP.

“With over 500 million2 people across the continent excluded from formal financial systems, the scale of the challenge is undeniable. Traditional data models fail to reflect the realities of African consumers, leaving millions without access to credit and the opportunities it enables. Financial inclusion isn’t just part of our mission, it’s our mandate,” said Lee Naik, CEO of TransUnion Africa. “That’s why we believe the only way forward is to think differently, to lead with bold, African-born solutions. Innovations like CreditVision Telco Data Score, designed for Africa, by Africa, are helping us responsibly harness mobile data at scale. In doing so, we’re not only expanding access to credit, but we’re also unlocking economic potential, accelerating inclusive growth, and reshaping the future of finance across the continent.”

Creating Opportunity with Consent and Compliance

The use of CDR data is subject to explicit consumer consent and is managed in compliance with South Africa’s Protection of Personal Information Act (POPIA). MTN is responsible for consent management and will ensure that Chenosis, MTN’s API marketplace, facilitates the connection between MTN’s data ecosystem and partners like TransUnion in a secure and scalable manner.

“This partnership demonstrates how mobile technology and secure data sharing can support positive change in the financial sector and unlock new opportunities for millions of South Africans,” said Selorm Adadevoh, Group Chief Commercial Officer, MTN Group. “We are committed to ensuring that data is used responsibly, with the customer’s interests at the forefront. This is a model of what responsible innovation can look like.”

Empowering Lenders and Growing the Economy

For lenders, the CreditVision Telco Data Score has demonstrated a 25–35% improvement in predictive performance over previous alternative data models, based on recent pre-launch validations across the retail and banking sectors.

By adopting CreditVision Telco Data Score, lenders can better predict user behaviour and support responsible lending by ensuring that credit users at risk of default are not overexposed and can be effectively supported throughout their credit journey.

Importantly, the product also helps New-to-Credit consumers establish and build their credit footprint over time. According to TransUnion data, low-risk individuals significantly increase their credit exposure within 18 months of becoming credit active, underscoring the long-term benefits of responsible financial inclusion strategies.

“With Chenosis, we enable collaboration between mobile operators and solution providers while maintaining high security and compliance standards,” said Waseem Amra, Head of Products and Platforms, Chenosis. “This partnership highlights how secure data access can support innovation in financial services that can transform lives.”

This partnership between TransUnion Africa, MTN, and Chenosis reflects the growing trend of using diverse data sources to create more accurate and inclusive financial access. Integrating mobile network insights into credit scoring provides a practical and scalable way to reach more individuals, while maintaining high standards of privacy and compliance.

“With this inclusive innovation, TransUnion has taken the lead in creating an impactful solution to one of the continent’s most pressing challenges – finding responsible pathways to greater financial inclusion that will unlock opportunities for individual and national growth. By turning mobile data into meaningful opportunity, we have set the standard in making transformation possible by showing how technology can be used in groundbreaking alternative ways. Together with MTN and Chenosis, we are building a future where every South African, regardless of their financial history, has the chance to be seen, to be trusted, and to thrive,” Naik concluded. “When financial institutions can measure risk more effectively, they can lend more confidently, and more consumers can access opportunity, and that’s a win for everyone.”

1. Based on TransUnion’s modelling and interpretation of economic market dynamics. 2. Source: The Global Findex Database 2021

Read moreNew Telco-Powered Credit Score Set to Transform Access to Finance for Millions of South Africans

Cape Culture of Gangsterism- NGO Report Contains Rapid Intervention Roadmap for Government

Location: News

The Global Initiative Against Transnational Organised Crime has published the latest edition of its Western Cape Gang Monitor, which should be required reading for a Western Cape Government that is singularly failing to counter the culture of gang association and violence.

The post CAPE CULTURE OF GANGSTERISM- NGO REPORT CONTAINS RAPID INTERVENTION ROADMAP FOR GOVERNMENT appeared first on For Good.

Read moreCape Culture of Gangsterism- NGO Report Contains Rapid Intervention Roadmap for Government

South Africa’s Consumer Credit Market Sees Targeted Growth in Key Products, Despite New High in Personal Loans Delinquencies

Location: Business
  • Credit card originations rose by 30.7% as demand grew, with below prime originations up by one third year-over-year (YoY)
  • Vehicle finance originations grew significantly YoY, indicating growing momentum in the automotive industry
  • Non-bank personal loans saw highest delinquency rate since previous high point in Q2 2021

According to TransUnion’s (NYSE:TRU) Q1 2025 South Africa Industry Insights Report, the growth in originations of new credit cards, at 30.7% year-over-year (YoY), far outstripped growth for other consumer credit products during the first quarter of the year.

Strong growth in credit cards was driven, in part, by lenders extending cards to more below prime[1] borrowers than they did one year ago – up 33.1% YoY. Subprime and near prime borrowers accounted for 69.3% of credit card originations, up from 64.3% one year earlier. At the same time, lenders looked to actively manage the increased risk profile of borrowers by limiting the average credit limit on new credit cards – down 13.1% YoY.

Growth is likely to remain buoyant in the South African credit card market, with 33% of respondents to TransUnion’s recent Q1 2024 Consumer Pulse Survey saying that they planned to apply for a new credit card in the next 12 months.

Credit card average account balances increased by 7.1% YoY, although lenders’ default concerns may have been eased by the 20-basis point (bps) decrease in account-level delinquencies* over the same period, standing at 12.3% in Q1 2025.

“While inflation has dropped to the low end of the South African Reserve Bank’s target range during Q1 at close to 3%, South Africans are still experiencing financial pressures from prior price increases, turning to credit to help them make ends meet,” says Ayesha Hatea, director of research and consulting at TransUnion. “Despite these strains, consumers have increasingly prioritised keeping their credit cards in good standing, as they likely want to ensure access to the ongoing liquidity that this credit product provides.”

Vehicle loans grew at double-digit rate

The vehicle loans market continued to show encouraging signs of continued growth, as origination volumes increased by 11.6% YoY in Q1 2025. The average value of new loans also rose by 3.0% over the same period.

The highest growth rate continued to be among Gen Z[2] consumers, up 28.5% YoY. Within the Gen Z cohort, 62% of new vehicle loans were opened by consumers in the oldest subgroup in this generation, aged 26 to 29 years. This trend suggests that older Gen Z consumers are becoming increasingly active in the vehicle finance market, likely as they reach key life stages such as career stability and household formation. While this group is not necessarily New-to-Credit, their growing share of originations highlights a valuable opportunity for lenders to engage younger, upwardly mobile consumers.

In contrast, the share of vehicle loans declined across all other generations, with the exception of Gen X, where volumes remained relatively stable. This reinforces the importance of targeting older Gen Z consumers as a key growth segment in the vehicle finance space.

With a 0.25% repo rate cut announced by the South African Reserve Bank (SARB) in January followed by another in May, demand for vehicle loans is likely to remain buoyant, with more than one fifth (22%) of South Africans surveyed in the TransUnion Q1 Consumer Pulse Survey indicating that they intend to take out a new car loan or lease in the next 12 months.

“With vehicle ownership is a priority due to limited public transport offerings, buying a vehicle is often a first step into secured credit for young professionals,” said Hatea. “Vehicle finance often requires relatively small deposits, and flexible financing options can be negotiated to make monthly repayments more affordable. Borrowers don’t need as extensive a credit history to purchase a vehicle as they do to buy a home. Successfully managing a vehicle loan demonstrates financial responsibility, which can strengthen future home loan applications.”

Personal loans leveraged for meeting monthly expenses

During the first quarter of the year, consumers also increasingly turned to personal loans as strategic tools to achieve their financial objectives, with originations growing for both bank and non-bank personal loan lenders – up 2.7% and 11.5% YoY, respectively. Demand for personal loans will likely continue, with 35% of surveyed South Africans saying that they intend to apply for a personal loan in the next 12 months.

However, non-bank lenders may yet have to refocus their risk management strategies in the coming months as more than two in five (41.3%) of South Africans who hold one of these loans – 83.9% of whom are below prime borrowers – being three months or more in arrears during Q1 2025. This is a 520-basis point (bps) YoY increase and is the highest delinquency rate for this product since the previous high of 39.1% in Q2 2021.

The delinquency rate among non-bank personal loans was 15 percentage points higher than delinquencies on bank personal loans, where below prime borrowers comprise 71.8% of the bank personal loans book.

“South Africans are increasingly turning to low-value personal loans with shorter repayment terms to manage their monthly expenses. However, persistently high delinquency rates — particularly among non-bank personal loans — indicate that many consumers are under significant financial pressure and struggling to meet their loan commitments,” says Hatea. “As lenders respond to growing demand for this type of credit, it’s essential they align their growth strategies with prudent risk management to ensure long-term sustainability.”

Home loans remain under pressure

Home loans were the only sector to experience a decline in originations in Q1 2025, down 10.8% YoY. Although originations fell across all risk tiers, loans to prime and above consumers saw a particularly sharp decline, down 21.1% YoY. This continues the downward trend in home loan growth observed since Q1 2020, with exception of a moderate YoY increase between Q1 2022 and Q1 2023.

“The fact that even prime consumers are pulling back from the housing market is a clear signal that affordability remains a significant barrier,” said Hatea. “This trend has implications not only for the credit market, but also for broader economic activity tied to home ownership and property development.”

As the housing finance sector continues to soften, lenders may need to reassess their strategies. This includes rethinking product design and pricing, as well as how they connect with younger consumers and first-time buyers, in order to reignite demand in a segment that has traditionally served as a foundation of secured lending.

 Table 1: Key South African Credit Market Metrics (Q1 2025 vs Q1 2024)

Product

YoY origination growth

Serious account-level delinquency rate*

YoY basis points (bps) change in delinquency rate
Credit card

30.7%

12.3%

-20 bps
Bank personal loan

2.7%

26.3%

14 bps
Non-bank personal loan

11.5%

41.3%

520 bps
Clothing accounts

7.6%

25.9%

-294 bps
Retail instalment

16.0%

27.1%

-138 bps
Retail revolving

5.4%

14.9%

-350 bps
Home loans

-10.8%

7.4%

19 bps
Vehicle finance

11.7%

5.4%

-1 bps

 *Account-level serious delinquency rate, measured as a percentage of accounts three or more months in arrears

[1] Scores are based on TransUnion’s CreditVision® generic scoring methodology. Risk distribution key: subprime (0-625), near prime (626-655), prime (656-695), prime plus (696-720), super prime (721-999).

[2] TransUnion age distribution: Gen Z (Born 1995 – 2010); Millennials (Born 1980-1994); Gen X (Born 1965-1979); Baby Boomers (Born 1946-1964

Read moreSouth Africa’s Consumer Credit Market Sees Targeted Growth in Key Products, Despite New High in Personal Loans Delinquencies

Economic Growth Must Be the State’s Primary New Year’s Resolution

Location: News

The GOOD Party supports the proposed 1.5% above-inflation rate increase to the minimum wage, which will rise from R28.79 per hour to more than R30 per hour in March 2026.

The post NEW MINIMUM WAGE A SMALL STEP TOWARDS FAIRNESS- BUT ECONOMIC GROWTH MUST BE THE STATE’S PRIMARY NEW YEAR’S RESOLUTION appeared first on For Good.

Read moreEconomic Growth Must Be the State’s Primary New Year’s Resolution

New Crime Prevention Model for Gauteng Crucial After 31 Years of Decline

Location: News

(Debate in the Gauteng Legislature on the Department of Community Safety’s annual report) More than thirty years after a new democracy was ushered in, Gauteng – the economic heartbeat of South Africa – ought to be a safe and functional province. Yet the 2024/25 annual report of the Department of Community Safety shows that crime […]

The post New crime prevention model for Gauteng crucial after 31 years of decline appeared first on Freedom Front Plus.

Read moreNew Crime Prevention Model for Gauteng Crucial After 31 Years of Decline

Gauteng Desperately Needs New Local Government Dispensation

Location: News

(Debate in the Gauteng Legislature on COGTA Department’s annual report) After 31 years, Gauteng’s municipalities should be centres of excellence in service delivery, but in reality, it is quite the opposite. Infrastructure is systematically decaying, energy systems are failing, municipal councils are dysfunctional and communities are immensely frustrated. The current local government dispensation has already […]

The post Gauteng desperately needs new local government dispensation appeared first on Freedom Front Plus.

Read moreGauteng Desperately Needs New Local Government Dispensation

South African Taxpayers Shell out Nearly R10 Million Over Last Five Years to Maintain Palestine Embassy

Location: News

While millions of South Africans are unemployed and have to pinch every penny to survive, they are generously contributing to keeping the doors of the Embassy of the State of Palestine in Pretoria open. The reply to a parliamentary question from the Freedom Front Plus (VF Plus) to the Minister of International Relations and Cooperation […]

The post South African taxpayers shell out nearly R10 million over last five years to maintain Palestine Embassy appeared first on Freedom Front Plus.

Read moreSouth African Taxpayers Shell out Nearly R10 Million Over Last Five Years to Maintain Palestine Embassy