NATIONAL SAVINGS RATE FAR BELOW THE LEVEL REQUIRED FOR SHIFT TO A HIGH-GROWTH ECONOMY

saving at every level of society is critical to the well-being of our citizens, and to the sustained economic health of our country. Programmes that promote personal saving and financial education are as important as sound economic policies.

“Tax-free savings accounts, tax incentives for retirement savings and initiatives such as Savings Month are positive means of promoting a savings culture, but they are not enough to reach South Africans who are still financially illiterate,” Grobler says.

Her hope is that a revitalised government under Cyril Ramaphosa will recognise the importance of introducing financial literacy curricula to children even at primary school level, and find ways to improve basic financial education among young people and adults that will stimulate entrepreneurship and foster a wiser approach to money.

LOOKING UP

As much as work needs to be done in these areas, there is the prospect of a turnaround. “Business confidence plays a big role in savings and investment decisions, both for South Africans and foreign investors.” Grobler says. “An improvement in 2018, following the positive indications on the political and economic stability of the country in December and January, could bolster business sentiment and confidence in the country.”

Saville is also upbeat. He says: “We anticipate that as soon as the next quarter we will start seeing encouraging signs of life from the index and its underlying components, such as the structural flow and structural environmental pillar indicators.”

martin.hesse@inl.co.za