South African households are finally catching a breather — but is the relief enough?
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Tonight on KayaBiz, we unpack the latest Altron FinTech Household Resilience Index (AFHRI) results with economist Dr Roelof Botha, who compiles the index.
After years of financial strain driven by the highest interest rates in 15 years, the AFHRI for Q2 2025 shows a 2.3% year-on-year improvement clear evidence that recent rate cuts are starting to ease pressure on consumers. Lower debt-servicing costs and improving private-sector salaries are helping households regain lost ground. But the recovery remains fragile.
Despite progress, household financial resilience has grown by just 0.2% a year since the interest-rate hiking cycle began and part of the latest improvement comes from once-off pension fund withdrawals through the new two-pot retirement system, which injected spending power but also triggered nearly R13 billion in extra tax revenue.
After years of financial strain driven by the highest interest rates in 15 years, the AFHRI for Q2 2025 shows a 2.3% year-on-year improvement clear evidence that recent rate cuts are starting to ease pressure on consumers. Lower debt-servicing costs and improving private-sector salaries are helping households regain lost ground. But the recovery remains fragile.
Despite progress, household financial resilience has grown by just 0.2% a year since the interest-rate hiking cycle began and part of the latest improvement comes from once-off pension fund withdrawals through the new two-pot retirement system, which injected spending power but also triggered nearly R13 billion in extra tax revenue.
