Latest news with #SouthAfricans'
TimesLIVE
a day ago
- Business
- TimesLIVE
Up to 50% of affluent South Africans' portfolios are held abroad, says FNB
More South Africans are looking to international banking to cushion themselves against global volatility, FNB says, as the bank marks the 10th anniversary of its international banking and savings operations in Guernsey. Speaking during the 10-year anniversary on Monday, CEO of FNB Guernsey Aneesa Razack said South Africans were increasingly looking to international banking as a hedge against market volatility, currency depreciation, geopolitical instability and changes in tax trends. 'Today, 30%-50% of affluent South Africans' portfolios are held abroad and we're witnessing a significant increase in clients seeking ways to externalise their wealth and hedge local risk without physically emigrating,' she said. Established to primarily service high-income and high-net-worth customers, FNB's business on the English Channel island has managed to acquire £1bn (R23.99bn) in deposits. Razack said Guernsey had evolved into a highly-respected, transparent and forward-looking centre for international companies. 'When we first set out on this journey, our ambition was simple, to help globally-minded Africans unlock the freedom of a financially-connected world. We believed then, as we do now, that going global should not be complicated or out of reach, but responsible, smart and within grasp for anyone with the vision to grow borders,' she said. Guernsey, with a population of 63,000, is viewed as a tax haven with a flat corporate tax rate for most companies and is an attractive destination for international businesses. Razack said over the years, FNB had not only built a business but a community of trust and shared vision. 'Our global offering has become an indispensable enabler for clients seeking to tap into global wealth opportunities through a secure and trusted integrated financial services platform.' She said offshore investing and global wealth management is not a departure from a client's home base, it's an extension of their ambitions. Sizwe Nxedlana, CEO of FNB Private, said generational wealth and accessibility have helped shift perceptions from exclusivity to inclusive, value-driven wealth management. 'What sets FNB Guernsey apart is its fiduciary, tax and investment specialist offering to clients, which is tailored to cross-border services. We don't view international banking as a stand-alone service but as an integral part of clients' broader wealth strategies. Whether our clients are planning for their children to study abroad, managing assets across multiple jurisdictions or securing a legacy for future generations.'
Daily Maverick
5 days ago
- Business
- Daily Maverick
Choc to the system — sweet treats under siege as cocoa prices soar globally
Climate shocks, crop disease and a global supply shortage are resulting in South Africans paying up to 40% more for their favourite chocolate bars and slabs. World Chocolate Day was celebrated annually in the first week of July, but this year there wasn't much to be merry about. In May, global cocoa prices hit R197,500 per tonne. From R154,000 in July 2024, it has been a relentless upwards march and it's hitting South Africans' wallets. And, if that Aero or Bar One feels lighter lately, it's because the world has entered an unprecedented era of chocflation. Ghana and Ivory Coast together produce the lion's share of the world's cocoa. Extreme weather and crop diseases have hit these producing regions exceptionally hard over the past five years. 'The increased variability of seasonal rainfall in the producing areas of the world due to climate change has threatened the viability of cocoa production,' says FNB senior agricultural economist Paul Makube. Cocoa trees need temperatures of between 20℃ and 30℃ and just the right amount of rainfall to grow, Makube explains, but droughts are becoming more frequent and farmers are being forced to adapt or abandon their crops. In addition to climate extremes, crop diseases are decimating harvests. Makube says the cocoa swollen shoot virus has been causing disease that has cut about 17% of Ghana's annual cocoa output over the past few years. Other disease threats that have adversely affected production include witches' broom, frost pod rot and black pod rot, says Thabile Nkunjana, senior economist at the National Agricultural Marketing Council. 'The production, yields and quality of cocoa have all been significantly impacted by these factors and consequently prices have risen sharply in recent years,' Nkunjana says. The numbers are eye-watering. As of June, cocoa hit R215/kg – the highest since the World Bank began tracking prices in 1960, Nkunjana says. In 2023 it was just R66/kg. The International Cocoa Organisation now predicts a global supply shortfall of nearly 500,000 metric tonnes for the 2023/24 season. Nevertheless, the global production outlook remains optimistic, Makube says, although demand prospects are worsening because of 'the uncertainty regarding potential inflationary pressures emanating from the US tariff onslaught'. Global squeeze, local crunch The shock is rippling across the globe and down to the local supermarket. In 2016, a chocolate slab in South Africa would have cost an average of R13.27, according to Statistics South Africa. Today, the price of a Dairy Milk slab ranges from R20 to R50, depending on where one shops. Data from consultancy group Eighty20 shows double-digit inflation on chocolate prices almost every year since 2020, far outpacing the overall consumer inflation rate. Since December 2021, the price of chocolate bars has shot up 40%. Spar is 'closely monitoring the global cocoa supply challenges and the resulting price increases in chocolate products', says Gerhard Ackermann, national merchandise executive at the Spar Group. The retailer is trying to cushion the blow with value promotions and proactive stock management. Pick n Pay says it 'always works to deliver the most affordable prices' while ensuring shelves stay stocked. South African chocolatiers are also recalibrating to weather the cocoa price storm. For Beyers Chocolates, a family-owned company that has been making chocolates since 1987, the steep rise has posed many challenges, says its marketing lead, Susan Krause. The company has responded with 'long-term supplier partnerships, smarter procurement planning and operational efficiencies across the value chain', Krause says. By keeping production local, it has been able to soften some of the cost hikes. At luxury craft chocolate maker Afrikoa, which sources its beans from farmers in Tanzania, the sustained increase in prices has heavily influenced cost, even though direct trade has helped the company to absorb 'some volatility', according to head chocolatier Kyle Hickman. Afrikoa has had to become 'more agile in production planning, prioritising efficiency and minimising waste', Hickman says. But he notes a silver lining in that 'informed consumers increasingly value the kind of responsible production that Afrikoa represents', which strengthens the company's brand story despite price sensitivity. Honest Chocolate cofounder Anthony Gird says the rise in cocoa prices, especially over the past two years, has led the company to 'do a price increase just to keep up' earlier this year. He is hoping it won't have to happen again soon, as the cocoa price hasn't risen significantly since Honest Chocolate's last bean consignment purchase. The company's clientele, Gird says, are understanding. 'People who buy our chocolate understand the value in the quality and ethics of the product.' Even global brands like Nestlé are trying to manage the chocflation. The company's 'Africa for Africa' model is focused on local sourcing and production and is tightening operations to manage costs, says Conny Sethaelo, communications director at Nestlé's east and southern Africa region (ESAR). 'This helps us maintain relevance and trust, even in challenging economic conditions,' she says. Laboratory-crafted luxury While traditional cocoa producers and users fight high prices, some scientists are bypassing the pod entirely. Using plant cell cultures in vats of sugary water, researchers are growing cocoa in labs. But not everyone is excited by the science. 'We respect the innovation behind lab-grown alternatives, but our brand is firmly rooted in celebrating the authenticity of African-grown cocoa,' Hickman says. Gird echoes this sentiment and says Honest Chocolate won't be considering lab-grown cocoa in the near future. 'If cocoa supplies dry up to the extent that it becomes needed, then we would be open to giving it a try.' Krause says Beyers Chocolates is 'keeping an eye on global innovations in the category' and is open to sustainable practices that fit its values. Nestlé, on the other hand, is more focused on soil. 'Nestlé ESAR is investing in regenerative agriculture, traceable technologies and community-based farming models,' Sethaelo says. Climate change is hitting cocoa farming hard and Nkunjana notes that Africa is especially vulnerable. 'Policies that lower the danger of climate change and protect farmers from losses should be given regional priority,' he says. These policies will encourage farmers to grow their cocoa production and improve production as a result. Makube sees a way through: a mix of infrastructure upgrades, financial access for farmers, sustainable agroforestry and public-private partnerships. 'The world needs to think about close substitutes for food or food commodities in general in light of the difficulties cocoa is facing,' Nkunjana warns. 'This will ensure that there is a steady supply of food and protect consumers from price shocks.' Despite the crunch, the nation's sweet tooth is undeterred. More than half of adult South Africans have eaten some form of chocolate in the past month, Eighty20's data shows. Bar One, Lunch Bar, Aero, Black Cat and KitKat remain at the top of the sugar-fuelled food chain. Even the viral Dubai chocolate phenomenon, which debuted at an astronomical price point of R1,000 last year, has found a niche, with R400 versions now for sale at Dis-Chem.
The Citizen
22-07-2025
- Business
- The Citizen
South Africans experiencing less financial stress, but still under pressure — survey
Overall, 63% of consumers spend more than 30% of after-tax income on debt repayments; the same ratio within the 45-54 age group is 74%. Although South Africans are experiencing notably less financial stress than they did for the past two years, with levels of financial stress returning to levels last experienced in 2022, money stress remains a significant issue for many people. According to the fourth annual DebtBusters Money-Stress Tracker which surveyed more than 27 000 respondents during May and June: 70% of respondents experienced money stress, down from 78% in 2023 and 75% in 2024. Although the extent of financial anxiety is declining, the impact on daily life remains substantial. Among respondents who said they still experience financial stress, 91% of them felt it affected their home life, 73% their work life and 73% their health. Women still bear a disproportionately higher burden of financial stress, with almost three out of four female respondents reporting feeling financially stressed. Women are around 10% more stressed about finances and 20% more stressed about work life, home life and health compared to men, although stress levels for both genders decreased by 5% to 15% across all facets of life since 2024. The shift is attributed to fewer national crises, such as less load shedding, reduced inflation and people starting to manage their finances better, allowing them to look beyond short-term survival. ALSO READ: Survey shows how economic distress erodes South Africans' savings culture Even small improvements decrease financial stress The Money-Stress Tracker worked with psychologist Andrea Kellerman, who notes that even a 5% drop in financial stress (from 75% to 70% in the past year) results in people sleeping and coping 'a bit better,' suggesting the profound impact even small improvements can have on resilience and perception. However, there are still key financial concerns. For people battling with financial stress, short-term concerns continue to dominate, with the top two running out of money before the end of the month and struggling to pay off monthly debt. The impact of interest rate increases, while still significant, subsided compared to 2023 and 2024. ALSO READ: Sarb: financial stability but financial distress in households and SMEs Different age groups have different levels of financial stress The survey shows that people from different groups have more or less financial stress: Age: Middle-aged (35 – 44 years) respondents had the most financial stress. Concerns about retirement increased for respondents older than 45 compared to 2024, indicating that this age group can now look beyond the short-term concerns which traditionally dominate. Middle-aged (35 – 44 years) respondents had the most financial stress. Concerns about retirement increased for respondents older than 45 compared to 2024, indicating that this age group can now look beyond the short-term concerns which traditionally dominate. Income: Lower-income groups are the most concerned about the impact of interest rate increases or unexpected expenses. While electricity costs are an elevated concern across all income groups compared to 2024, retirement worries are more pronounced in the upper-income brackets. People earning more than R20 000 a month remain in the group that experiences the most financial stress, often qualifying for and taking on more credit than their earning capacity allows. Lower-income groups are the most concerned about the impact of interest rate increases or unexpected expenses. While electricity costs are an elevated concern across all income groups compared to 2024, retirement worries are more pronounced in the upper-income brackets. People earning more than R20 000 a month remain in the group that experiences the most financial stress, often qualifying for and taking on more credit than their earning capacity allows. Region: Respondents from the Western Cape are the most financially concerned, surpassing Gauteng, which reported the most financial stress in 2024. The Western Cape is also where most people worry about unexpected expenses and retirement. Smaller provinces, such as the Northern Cape, Limpopo and Mpumalanga, saw significant increases in concerns about electricity costs and interest rates. The survey also investigated borrowing and debt repayment trends and found: 63% of respondents allocated 30% or more of their after-tax income to debt repayment, while 48% spend over 40% paying back what they borrowed, a level considered unsustainable. People older than 45 are under the most severe debt-repayment pressure, with 60% having unsustainable levels of debt. Respondents earning more than R20 000 a month also face considerable pressure to repay debt. This chart shows how much of their income the respondents spent on repaying debt: ALSO READ: How to minimise financial stress in your life What people are doing to combat financial stress However, the survey also shows that they are actively doing something about their financial stress: 37% of respondents reported actively cutting back on monthly spending, compared to 43% in 2022. This suggests savings fatigue has set in, Kellerman says. Seeking higher-paying or better jobs is a growing trend, with 35% of consumers exploring these options to make ends meet, compared to 26% in 2022. Younger consumers are more proactive about sticking to budgets and are almost four times more likely to seek better employment. The survey shows that 56% of the respondents are more intent on managing financial stress than people older than 35. Respondents elaborating on how they manage financial stress revealed a shift in coping mechanisms. In 2022 and 2023, people tended to seek better jobs or start a side hustle, while in 2024, debt counselling was the preferred way to relieve financial stress. Now there is a growing emphasis on entrepreneurial efforts, multiple income streams and financial independence, reflecting a move towards self-reliance and creating diverse sources of income. Benay Sager, executive head of DebtBusters, says that despite the slight reduction in overall stress, over 90% of South Africans with unsustainable debt do not proactively seek professional support such as debt counselling. 'This underscores the ongoing importance of stress-management programmes, financial education and awareness campaigns that address stigma and promote early intervention. It also highlights the need for innovative solutions to deal with financial stress, particularly those that help consumers stretch their money further.' ALSO READ: South Africans remarkably resilient despite economic challenges With less financial stress, people are sleeping and coping better Kellerman says the 2025 edition of the Money-Stress Tracker brought an encouraging insight that some might overlook at first glance: while overall financial stress levels dropped from 75% in 2024 to 70% in 2025, the impact of this change could be substantial. 'People are sleeping and coping a bit better despite elevated financial pressure. This 'disconnect' between the data and lived experience tells an important story about resilience, perception and the compounding effects of small improvements. 'It is well known that perception drives behaviour, and in 2025, that is more evident than ever. Although financial stress and pressure remain high for many, people report feeling more in control, more optimistic, as well as more willing to engage with support structures. 'However, for the first time in years, there was an overall sense of stability. The absence of large-scale disruptions such as load shedding or social unrest allowed people to regain emotional bandwidth and reframe their financial situation. With just a small decline in stress, people have begun to look beyond short-term survival.'
IOL News
22-07-2025
- Business
- IOL News
Money stress eases slightly in South Africa, but financial pressures remain
For people feeling financially stressed, short-term concerns continue to dominate, with the top two being running out of money before the end of the month and struggling to pay off monthly debt. South Africans are reporting lower levels of financial stress than in recent years, with stress levels returning to where they were in 2022. However, financial pressure remains a significant concern for many households. These findings come from the 2025 DebtBusters Money-Stress Tracker, which surveyed over 27,000 people in May and June, making it one of the largest online surveys examining the impact of money stress on South Africans' lives.
The Citizen
20-07-2025
- Business
- The Citizen
Survey shows how economic distress erodes South Africans' savings culture
Consumers find it difficult to stick to a savings culture while the economy causes so much financial distress. Concerning insights from the latest Debt Rescue consumer savings survey highlight a severe disconnect between South Africans' desire to save and their inability to. This is in no small part due to South Africa's struggling economy and its impact on consumers, painting a grim picture of a nation living from month to month and on the brink of financial ruin. Neil Roets, CEO of Debt Rescue, says with the majority of consumers now barely even able to live from pay cheque to pay cheque and many relying on freelance or seasonal work, savings are becoming a luxury most South Africans can no longer afford. He emphasises that they need urgent, practical financial support to help households build financial resilience in an increasingly unaffordable economic climate. 'At least two-thirds of our respondents say that despite prioritising saving every month, they are finding it close to impossible to do so now, due to financial hardship and challenges resulting from the country's economic downturn.' ALSO READ: Ordinary South Africans will feel impact of US tariffs Survey shows consumers are trying to continue savings culture Key insights from the survey, which coincides with National Savings Month in July, show that South Africans are desperately trying to secure their future finances and shield their families from even greater economic duress, but are failing miserably due to immediate basic needs barely being met. A total of 48% of respondents report that they cannot cover basic essentials like food, energy, housing and healthcare, while another 41% say they only just manage their essential day-to-day living costs. Roets points out that there is clearly no lack of will on the part of consumers. 'While it is encouraging that 87% of respondents are actively trying to improve their saving habits, the resolve to save is simply not enough in the face of serious financial strain.' He says the unsustainably high cost of living is the primary barrier, with nearly half of those polled (47%) citing the high cost of living as their main barrier to saving, while 27% attribute unexpected expenses such as medical bills as the primary reason they fail. ALSO READ: Latest petrol price increase puts SA consumers on backfoot again This is how savings culture is failing in SA Some of the stand-out insights from the survey are: 35% of respondents prioritise building an emergency fund as their most important savings goal, highlighting how many are conscious of the reality that they might be living one crisis away from financial collapse. Almost a third (27%) do not save any of their income, while 29% save less than 5%. Only 18% manage to save more than 10% of their income monthly. Saving behaviours are worsening: 26% of people polled say they save less now than they did a year ago, while 23% say they stopped saving altogether. Only 20% managed to increase their savings. ALSO READ: Are you a young professional? Here's how to avoid the debt trap Beware: hope is not a strategy – avoid online gambling to save your financial problems On the back of the financial travails that plague millions of South African households, a mammoth new social ill has reared its ugly head and is far bigger than most people realise, Roets says. Online gambling increased by 550% in only four years with no sign of a reprieve, reaching a turnover of R1.14-trillion in the 2023/24 year, or nearly 17% of GDP. The best available research shows that it is mainly low-income South Africans who gamble away an astonishing share of their monthly pay, out of sheer desperation, undoubtedly hoping for big winnings that will somehow transform their circumstances. 'Meanwhile, the national consumer debt crisis is deepening with the latest figures showing that the debt to disposable income ratio for South African households has increased to a current level of around 75%, which is higher than the long-term average of 70% according to the South African Reserve Bank (Sarb). 'What all of this points to is that, while South Africans want to save, they simply do not have the means to do so and are relying more and more on credit, the state and/or turning to risky behaviours like gambling to manage everyday living costs. 'Consumers have already started to downgrade their lifestyle costs or cut them out completely, and this is very concerning in areas such as insurance, which places them in a vulnerable situation.'
