And we're not even talking about Tuesday when Capitec clients opened their accounts on payday only to find a heart-and-gut-wrenching bank balance of R0,0.
The lender, which provides banking services to roughly one-third of the South African population [the bank had 20.1 million active clients at the end of February], says its clients became poorer in the financial year to end-February as their income levels failed to keep up with inflation.
Compared to last year, Capitec clients are spending 8% more on groceries on average, and 16% more on fuel – a direct reflection of the cost of living crisis which has seen food and fuel prices go to extreme levels. Interest rates were also hiked up, which made the value of the average loan debit order increase by 20%, and the average vehicle finance debit orders grow by 15%.
This came as central banks hiked rates aggressively globally in an effort to keep inflation under control, with the fallout from load shedding expected to help cut SA’s growth to almost zero in 2023. The 2023 financial results statement reveals the impact that the “current deteriorating economic conditions are having on South Africans”:
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