The continued dominance of cash use in SA is the focus in this edition of Business Day Spotlight. Host Mudiwa Gavaza is joined by Elize Kruger, an independent economist. The majority of the discussion is spent on PayInc’s new Cash Index.
Kruger begins by reflecting on how the economy has performed in 2025, both locally and internationally. She says the global economy has been characterised by volatility, especially as US tariffs were imposed. Even then, Kruger says the global economy remained resilient.
Despite tracking slightly lower than in previous years, cash remains important for the SA economy, data from PayInc, formerly BankservAfrica says.
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“While reflecting a gradual move away from cash usage, the data is also an indication of the efficiency improvements for cash demand management in the value chain,” she said.
“Ultimately, efficiency gains and structural changes in the industry should not be mistaken for a decline in cash demand in the economy,” Kruger explained.
According to the Reserve Bank, notes and coins in circulation have levelled off since 2020. At R180bn in 2024, in nominal terms, it equates to about 2.5% of GDP.
However, a notable moderation is evident in real terms. Additionally, commercial banks have reduced their cash holdings over the same period.
Kruger outlines the findings from the new PayInc Cash Index; cash use trends; reflections on the economy in 2025; and the SA economy.
• Business Day Spotlight is an Arena Podcasts Production.
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