South Africans face ongoing financial strain amid slow economic recovery

South Africans continue to face persistent financial strain, with the country’s sluggish economic recovery from the COVID-19 pandemic offering little relief to households, according to the online research firm infoQuest.

The data says that despite initial hopes that the post-pandemic period would bring improved financial stability, the reality for many remains unchanged. High unemployment, salary increases that lag behind inflation, and a weakened rand have contributed to stagnant household incomes, while the cost of living continues to rise. This has created an environment in which families are compelled to make difficult decisions simply to meet basic needs.

In August 2025, infoQuest, in partnership with customer experience consultancy Decapod, surveyed to assess the financial well-being of South Africans and the strategies they are employing to cope. The study, which interviewed 300 consumers across various demographics, paints a picture of a population that is resilient but under considerable financial pressure.

Claire Heckrath, CEO of infoQuest, says that while there has been a slight uptick in financial satisfaction, this is largely due to the resourcefulness and determination of individuals rather than any meaningful economic improvement. She emphasised that the burden of financial survival has shifted almost entirely onto individuals, with little evidence of systemic support or recovery.

The survey revealed that overall satisfaction with financial circumstances remains low, with only 15% of respondents reporting that they are very satisfied. The average satisfaction score in 2025 was 5.8 out of 10, a marginal increase from 5.4 in 2023.

This modest improvement suggests that while some consumers may have made progress in managing their finances, the broader economic landscape has not significantly changed. Notably, older respondents, particularly those over 50, reported greater financial pressure than their younger counterparts, it says.

Consumers appear to be relying heavily on deliberate and sustained efforts to manage their finances. The most common strategies include seeking out promotions and bargains (91%), reducing spending on luxuries and spontaneous purchases (85%), and cutting back on social outings (83%).

The survey shows that a disciplined approach to budgeting is also evident, with 83% of respondents adhering to monthly budgets. Many are making conscious choices about the goods and services they consume, such as reducing subscription services (66%), opting for local products over international ones (65%), and changing grocery shopping habits (62%).

Beyond day-to-day adjustments, the survey says that some South Africans are making more significant lifestyle sacrifices. These include cutting back on hobbies (56%), using public transport or carpooling (51%), reducing spending on sports and gym memberships (49%), and downsizing their homes (39%).

Others have taken even more drastic steps, such as pausing their education (37%) or selling personal possessions (29%) to generate income, it says.

The survey also highlights a growing reliance on informal debt. Borrowing from family and friends (27%) is more common than taking personal loans from financial institutions (24%), suggesting that many consumers either lack access to formal credit or prefer to avoid the associated costs. Additionally, some are tapping into existing assets, with 22% drawing from excess home loan funds and 20% increasing their credit card limits.

Debt repayment remains a significant challenge, says the survey, particularly with credit card payments, which 51% of respondents struggle to meet each month. Essential expenses such as groceries, home loan repayments, fuel, and school fees are also difficult for about a third of consumers to afford. While insurance payments are a concern for some, they appear to be less burdensome than other financial obligations, possibly indicating that consumers are prioritising more immediate needs. The survey states in response to these pressures, many South Africans are turning to side hustles and additional employment.

The survey found that 42% of respondents have taken on extra work to boost their income, a trend that spans all age groups. Others are selling household items (21%) and valuables such as jewellery or art (18%) to make ends meet. More drastic measures include moving children to more affordable schools (16%), selling vehicles (7%), and altering living arrangements, such as selling property and relocating to cheaper housing (5%), moving in with family (5%), or renting (4%), the survey shows.

PERSONAL FINANCE