Fewer people and businesses are losing everything to debt, new data shows
Residents get some relief as personal debt drops and shops stay busy, but falling factory work and power generation continue to put jobs at risk.
Statistics South Africa has brought back its monthly debt reports, showing that fewer people and local businesses went completely broke in the first half of this year compared to last year.
The number of individuals declaring bankruptcy dropped, while company liquidations also went down slightly. Most of the business closures were voluntary, meaning owners chose to close down rather than being forced to by a court.
However, the bigger economic picture remains tough for workers and industry.
Mining activity slowed down, mostly because less iron ore, coal, and platinum were mined. Output for gold, diamonds, and copper also dropped, though manganese and chromium saw small gains.
Factories had a hard time as well, with most types of manufacturing losing money. The biggest drop was in food and drink production, alongside sharp falls in furniture, paper, and printing. Small gains in clothing, plastic, and electrical equipment were not enough to fix the overall loss.
To make matters worse, national electricity generation stayed lower than it was last year, even with a tiny improvement from last month.
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On a positive note for local shoppers, retail stores saw more business. People spent more money online and on clothes, household furniture, medicines, and everyday items. Even so, hardware stores and food shops continued to struggle, with food sales dropping for the sixth month in a row.
Key price changes hitting residents:
- Fuel prices: Surged by over 34% in a year, driven by steep jumps in diesel (up 50.8%) and petrol (up 31.7%).
- Commuter fares: Passenger transport costs jumped by over 12% in a year, led by quick monthly increases in minibus taxi fares (up 11.5%), e-hailing services (up 8.7%), long-distance buses (up 8.4%), and school transport (up 3.7%).
- Rent: Housing rents rose across the board over the past year, with townhouses up 5.4%, flats up 4.6%, and houses up 3.7%.
- Staple foods: Brought some relief, with white rice down 13.4%, maize meal down nearly 6%, and stewing beef down almost 3%.
- Pantry items: Saw steady price hikes, including pork (up nearly 14%), sausages (up nearly 12%), black tea (up over 8%), and instant coffee (up 7%).
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