Virus causes transactions to plunge – survey

BANKSERVAFRICA’S Economic Transaction Index (Beti) survey has found that economic transactions in South Africa plunged in March, as the Covid19 announcement and lockdown impacted consumers and the economy.

The Beti survey is a broad, monthly indicator of economic activity in the economy, and it has indicated that the economy was shrinking rapidly.

As the largest automated payment clearing house in Africa, BankservAfrica clears and processes billions of low-value card, ATM and EFT transactions annually.

Head of stakeholder engagements at BankservAfrica, Shergeran Naidoo, said: “In March, the Beti declined by 3.3%. On a seasonally adjusted basis, this is the sharpest drop since August 2008. It demonstrates the huge toll of the coronavirus on the economy.

“To get a full picture, on a year-onyear basis the Beti declined by 0.4%. However, on a quarterly basis, this was 3% – the biggest drop since January 2016,” he pointed out.

Economist Mike Schussler, who helped to develop the Beti, said: “When the drop is as steep as in March, it suggests a potential sharp decline in the economy. More concerning is that our other data indicates this is not the end; we could see a worse decline in April and possibly in the months thereafter.”

The survey showed that while the volume of transactions increased, the average value per transaction fell by 1.1% in real terms.

Meanwhile, a survey by market research firm Consulta has found that 10% of the population are deeply concerned about the economic impact the lockdown will have in the medium to long term.