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The Great South African Spend: R289 Billion of Cautious Celebration
The festive season in South Africa is more than a holiday; it’s a cultural and economic event. This year, despite a palpable financial squeeze, the nation is expected to pour a staggering R289 billion into celebration, according to Wonga’s eighth annual Summer Spending Survey. But dig beneath the headline figure, and a story of resilience, caution, and shifting priorities emerges.
The survey of over 10,000 respondents shows the average person plans to spend R6,299down R511 from last year’s peak. “It talks to a wider drop in consumer confidence,” explains Wonga’s Tina Manyanya. This cautious optimism is reflected in the numbers: 40% plan to spend less, more people are relying on stokvels and buy-now-pay-later services, and a significant portion would prefer cash or grocery vouchers as gifts.
Where the Rand is Going: Food, Family, and the Open Road
So, what are South Africans prioritising?
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The Heart of the Home: The biggest slice of the budget (an average of R2,261 per person) is reserved for food and drinks. The braai remains the undisputed centrepiece of celebration.
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Gifts of Connection: Gift-giving follows, at R1,135 per person, with almost half of all gifts destined for family members. Interestingly, 15% of people are planning a gift for themselvesa small act of self-reward after a tough year.
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Journeys Home: Local travel and transport account for R1,166 per person. However, 73% of respondents are staying put, with 41% of those citing affordability. For the 26% travelling, it’s overwhelmingly to visit family in KwaZulu-Natal and the Eastern Cape, not for tourism. The Western Cape, surprisingly, isn’t a major draw for local holidaymakers this season.
The In-Store Experience Wins
Despite the global shift online, South Africans are sticking to brick-and-mortar stores. High delivery fees, complicated returns, and a desire to avoid online impulse buying are driving shoppers back to physical retailers. This preference also benefits surrounding businesses like restaurants, creating festive hubs in local communities.
A Financially Savvy, Yet Stretched, Spirit
This year’s spending is underscored by a strategic, sometimes strained, approach to finance:
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Saving is Up, But Not Restored: 23% saved throughout the year for festive costsan improvement, but still far below the pre-pandemic confidence level of 42% in 2019.
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Credit Reliance Grows: 22% will turn to credit providers (up from 20% in 2024), and 21% will use stokvel savings.
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The ‘Why’ Behind the Spend: 68% will spend most of their time with friends and family, reaffirming that connection, not consumption, is the true engine of the season.
The portrait is clear: South Africans are determined to celebrate, to connect, and to find joy. But they are navigating this festive season with a calculator in one hand and a wary eye on January. The R289 billion spend is not a sign of frivolity, but of a nation carefully calibrating its need for joy against the realities of a constrained wallet. The spirit is willing, but the budget is wise.
{Source: Citizen}
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