Capitec says it is considering opening the taps to “certain pockets” after aggressively cutting back its lending over the past year – but customers should not expect easy access to credit.
However, Capitec chief executive Gerrie Fourie believes the group may have been too conservative with this move and is looking to open up “certain pockets” of lending.Despite running credit education campaigns across social media and its app, Capitec still saw debt review grow from R5.5 billion in February 2020 to R6.3 billion in February 2024.
Fourie also noted that the group will continue to exercise caution when extending credit in the unsecured retail segment amid the challenging economic environment.While consumers are still under significant pressure, there are positive signs in the economy. Food inflation has been particularly high in South Africa, reaching 14.1% in February 2023, primarily affecting low-income earners.
Looking ahead, the biggest risks to inflation remain largely out of South Africa’s control, with many eyes on global oil prices due to uncertainty in the Middle East, particularly Israel and Iran’s growing hostilities.