43% of Consumers Buying Food on Credit: Evidence of a Crunch

South African workers are living in a credit crunch, with 43% buying food on credit, considered a sure sign of a battling consumer economy.

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It is common knowledge that too many South Africans cannot make ends meet and rely on credit for basics such as transport, groceries, and other essentials.

Finmark Trust data indicates that in 2024, 43% of adults used credit to buy food. The same report found 12 million adults, including those who borrow from informal sources, are in financial distress.

In addition, FinMark Trust data from 2022 shows that 90% of adults are financially included, which means they have access to financial products and services appropriate to their needs. Despite this, FinMark says many rely on informal services due to barriers such as high fees and lack of documentation.

"These informal services include loan sharks (mashonisas) who charge much higher interest rates than the formal providers are allowed to—30% to 50% per month. This means a R500 payday loan could end up costing the consumer up to R250 in interest," says Caroline van der Merwe, co-founder and chief product officer at Jem.