Johannesburg, 09 Dec 2022
We have released our latest Short-Term Credit Impact Index, known as the AFSCI Index, tracking the impact of short-term credit[1] extension on the South African economy. The index is compiled independently by economist Keith Lockwood each quarter.
Based on National Credit Regulator (NCR) data for the second quarter of 2022, there was a significant increase of almost 10% in the AFSCI Index when compared to the first quarter of the year. However, relative to a year earlier, the index is down just over 1%.
To ensure more up-to-date information, trends in short-term credit extension are now supported by our own data to provide a useful indicator of likely trends in the third quarter of 2022. This data points to a further quarter-on-quarter increase in net short-term credit extension of 0.9% in Q3 2022.
Another key finding is that while short-term credit made 12% less of an impact on the economy in Q2 2022 than it did at the start of 2015 – the index’s baseline year – it is now making 111% more of an impact than it did at the height of the COVID-19 lockdowns in Q2 2020. Altron FinTech data suggests the impact of this form of credit increased further in Q3 2022.
Our MD, Johan Gellatly, says the information provided by the AFSCI Index continues to assist the industry as a whole to be aware of important trends. “At Altron FinTech, we watch these with a sharp eye to ensure our credit solutions remain geared to assist our clients to meet market demand and to continue innovating in our space so that we remain competitive.
“We are also able to assist customers’ businesses to trade profitably despite challenging market conditions as our team has a deep understanding of how best to assist customers to de-risk their businesses, trade and to grow, taking into account the market and specifically the segment conditions. This is based on the expert knowledge of the credit sector we have built up over the years.”
For more information on the AFSCI Index, as well as the latest results, please visit https://content.altronfintech.com/afsci-launch.
[1] Short-term credit is defined as loans with values not exceeding R8 000 that are repayable within six months.
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