Bomikazi Zeka and Abdul Latif Alhassan

Imagine you’ve found yourself in a difficult financial situation and needed to raise R40,000 (more than US$2,000) on the spot. Where and how would you raise these funds? Or what if a financial emergency has just taken a grip on your household? Which resources would you draw upon to address the problem?

If these scenarios ring true, you’re not alone. Many households are struggling to cope with unexpected financial expenses as interest rates and costs of living rise. With the global economy recovering from the impact of the COVID-19 pandemic, developing countries have been worse off. As many as 64% of households reported a decrease in income. And South Africa was no exception.

A recent study found that 61% of South Africans were financially stressed and struggled to meet their basic financial commitments due to a shortage of money. Further, close to 40% of