Savings expert and CEO of the SA Savings Institute, Gerald Mwandiambira, says South Africans need to reassess their finances in the midst of the coronavirus (COVID-19) pandemic to prevent sinking deeper into debt.

As many continue to feel the economic impact, the lockdown has seen some businesses closing their doors or retrenching staff.

In the video below, Economist Mike Schussler talks about the looming retrenchments in SA:

Many South Africans have not worked since March when the lockdown began, resulting in them not being able to make their bond, vehicle or rent payments.

Mwandiambira explains how people can take control of their financial fate.

“Be in control of your fate, of what you eat, buy in bulk with families or friends. If you are renting a property at this time you know you’re losing an income, consider moving back home. If you own your home, carry on paying your bond as though it was before March. You are going to save between five and eight years. If you can’t do that, you can also talk to your bank.”

‘Economy remains uncertain’

Economist Dawie Roodt at the beginning of July warned that the South African economy will remain uncertain for the foreseeable future.

The economy was already frail before COVID-19 pandemic hit South Africa in March, with January-March being the third consecutive quarter of contraction and following a 1.4% decline in GDP in October-December.

Roodt blamed government for not putting relevant policies in place.

“The private sector has been affected by things such as the lockdown and a lack of electricity and a very inefficient state. Yes, there’s more than one player in the economy, but I have very little doubt that if they want to blame somebody for the problems that we are experiencing, it must be government for the wrong policies,” he explained.

In the video below, Dawie Roodt warns that the economy will remain uncertain for the foreseeable future.