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A man presses a button to approve an electronic transaction.
Data tracking electronic transactions in South Africa has showed a slight rebound in economic activity in 2024 following negative growth in 2023.
The BankservAfrica Economic Transactions Index increased on average by 1.7% in 2024, compared to the contraction of 0.5% the previous year.
The index tracks the value of all electronic transactions cleared through BankservAfrica at seasonally adjusted real prices.
The number of transactions that cleared in January moderated to 156.2 million compared to 170.4 million in December that marked an all-time high.
Despite this, the transaction volumes were still 2.7% up from a year ago.
“Really, what was behind that gradual recovery on the one side is cyclical, we’ve seen inflation moderating notably in 2024. We also had our first cuts in interest rates that also enabled, you know overall, that we had a real increase in wages. So, that added to the purchasing power of the household in South Africa,” says Independent Economist Elize Kruger.
VIDEO | The BankServe Africa Transactions Index ticked up marginally in August 2024:
