Ina Opperman
Business Journalist
4 minute read
2 Dec 2021
5:51 pm

Low-income consumers need more access to credit, if we want to fix economy

Ina Opperman

Government needs to change policy to ensure low-income consumers have access to credit to grow the economy.

Image: iStock

Low-income consumers need more and easier access to credit because it adds a significant amount of money to South Africa’s gross domestic product (GDP). A recent composite households resilience index (AFHRI) for the second quarter of the year also confirms that the average household tended to find it easier to incur and manage debt than before the pandemic. Although most people would wonder about improving access to credit for low-income consumers, especially since microfinance has such a bad reputation in South Africa, microlending is held in high esteem in most parts of the developing world. Short-term loans and unsecured credit...