South African credit market sees largest QoQ growth since Covid.
Loading player...
GUEST - Andrew Fulton, Director at Eighty20.
Following years of slow growth in credit participation post pandemic, South Africa's second quarter of 2025 marked its most significant expansion since Covid-19. The number of outstanding bank and retail loans rose by 3.5% YoY. Most of this growth in account volumes stemmed from unsecured loans, which saw a YoY growth 5.8% (associated with a 3.3% increase in outstanding balances).
Since the pandemic's economic disruption, South Africa's credit market has been characterised by muted growth. Years of economic uncertainty, rising interest rates and inflation pressure has kept lenders in a conservative mindset.
The number of credit active people grew slowly as only consumers with the lowest credit risk continued to qualify for new credit. Many consumers battled to qualify for new credit against the backdrop of risk-averse lending strategies employed by many lenders in the market.
Following years of slow growth in credit participation post pandemic, South Africa's second quarter of 2025 marked its most significant expansion since Covid-19. The number of outstanding bank and retail loans rose by 3.5% YoY. Most of this growth in account volumes stemmed from unsecured loans, which saw a YoY growth 5.8% (associated with a 3.3% increase in outstanding balances).
Since the pandemic's economic disruption, South Africa's credit market has been characterised by muted growth. Years of economic uncertainty, rising interest rates and inflation pressure has kept lenders in a conservative mindset.
The number of credit active people grew slowly as only consumers with the lowest credit risk continued to qualify for new credit. Many consumers battled to qualify for new credit against the backdrop of risk-averse lending strategies employed by many lenders in the market.
