S
outh Africans simply do not save enough – rather, we
tend to spend. What is worse, credit is easy to obtain,
that we are often spending money we do not have.
The worrying reality is that the situation is worsening:
household savings as a percentage of disposable
income is falling with subsequent rising, debt levels. Savings fell
another 0.2% in the first quarter of 2012 and debt as a proportion of
disposable income in the same period was more than 75% compared
to 53% just 10 years ago. According to the South Africa Reserve
Bank (SARB), South Africa’s gross savings at the moment represent
only 16% of GDP, compared to key emerging economies such as
China and India at 52.3% and 31.6% respectively in 2010.
To save South Africa – to grow the economy and to
develop the means to deal with the problems like
poverty – we must undertake a drive to save our
savings. If more consumers opt to save through
mechanisms such as retirement schemes,
more capital is made available to increase the
productive capacity of the country. This is
achieved through the underlying investments in
the private sector (through shares, for example)
and through government schemes (such as
government bonds). At present, South Africa’s
economic development is heavily dependent on
fickle foreign capital.
Edition 4
BANKER sa
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