Experian highlights cautious progress in South Africa’s credit sector
Experian’s latest Consumer Default Index (CDI) reports a 14% year-on-year improvement in South Africa’s consumer credit performance.
According to Experian, this uptick, however, stems not from enhanced consumer financial management but from lenders tightening criteria over the past 24 months. By limiting credit to fewer consumers with adequate cash flow, default rates have decreased due to reduced supply. Declining inflation and interest rates further bolster short-term affordability and long-term stability. Jaco van Jaarsveldt, head of commercial strategy and Innovation at Experian, says: “While the improvements we’re seeing in consumer credit health are encouraging, they are primarily due to limited access to credit rather than improved credit management. This lack of credit supply can be a veiled benefit, as it encourages consumers to live within their means, ultimately promoting long-term financial health.” With potential tax hikes looming, he urges prioritising essential spending. The CDI fell from 4.36 in September 2024 to 4.04 in December, though a Q2 2025 rise is expected post-festive spending. Credit demand hit a Q3 peak, yet approvals rose marginally, reflecting lenders’ cautious stance amid economic uncertainty, says Van Jaarsveldt.
MTN launches new brand vision
MTN South Africa has introduced its new brand positioning, “Today we make moves”.
Announced on March 12, 2025, MTN says this initiative is rooted in the principle that action fuels progress, the group says it aims to support every individual’s potential.
Robyn Lewis, general manager of brand and marketing says: “Our digital tools and platforms do more than just connect people; they unlock everyday progress.”
From students accessing online education to township entrepreneurs scaling businesses, MTN says it seeks to enable these advancements.
“We see this positioning as more than just a campaign, it’s a movement that brings hope, inspires action, and reaffirms MTN’s role as a partner in progress.” New offerings and nationwide initiatives will further this mission, empowering South Africans to take meaningful steps forward, the group says.
Microsoft boosts South Africa’s tech future with R5.4bn investment
Microsoft has unveiled plans to invest R5.4 billion by 2027 to expand its cloud and AI infrastructure in South Africa, addressing rising demand for Azure services.
This follows a R20.4 billion investment over the past three years, which established South Africa’s first enterprise-grade datacentres in Johannesburg and Cape Town.
According to Microsoft, this initiative aims to empower organisations—from startups to multinationals and government bodies—with cutting-edge cloud and AI tools to enhance efficiency, service delivery, and innovation across the economy. President Cyril Ramaphosa welcomed the move, stating: “Beyond blazing a trail in the local technology space, the longstanding presence of Microsoft in South Africa is a vote of confidence in our country and in our economy. The strategic investment announcements made by Microsoft today stand as further testimony to this enduring confidence.” He highlighted South Africa’s appeal as a secure and promising investment destination. Brad Smith, Microsoft’s Vice Chair and President, added, “For more than 30 years, Microsoft has been a committed partner to South Africa. This latest investment is part of our broader focus in helping South Africans build a future where technology drives prosperity.” Industries like healthcare, finance, and mining are already benefitting from these advancements.
PERSONAL FINANCE