JOHANNESBURG - South Africa is seeing a notable rebound in credit demand, with private sector credit extension rising 1.5 percent year-on-year in February beating expectations and signalling renewed confidence across the economy.
Corporate borrowing is leading the charge, surging nearly 16 percent year-on-year, driven by strong demand for unsecured loans, overdrafts and property-related financing. Investment activity has also jumped sharply, pointing to expanding business activity.
Households are also taking on more credit, supported by lower inflation and interest rates, with mortgage demand ticking higher.
But the outlook remains uncertain. Rising geopolitical tensions in the Middle East and a potential pause or even reversal in interest rate cuts could weigh on confidence in the months ahead.