A city comparison: Where do South Africans spend the most?

Johannesburg, the bustling heart of South Africa, isn’t just the country’s economic hub; it’s also home to its biggest spenders.

According to the SpendTrend24 report, residents of Johannesburg spent a whopping 47% more than the average South African in the past year, cementing their status as the nation’s premier consumers.

The findings form part of the annual report, conducted by Discovery Bank in partnership with Visa, which scrutinised over 13 billion transactions from 60 million credit cards across 14 cities globally, spanning from 2019 to 2023.

Spending patterns across South African cities showed notable differences: Capetonians spent 38% more, and Durbanites 13% more, than the national average.

Hylton Kallner, CEO of Discovery Bank, highlighted that “the global economies in 2023 navigated complex challenges of post-pandemic recovery amid persistent inflation and high interest rates, which escalated living costs and necessitated adjustments in consumer spending worldwide.”

GROCERIES AND DINING OUT

Differences in spending extend to categories such as food, which has seen an overall increase. Among South African cities analysed, Cape Town led grocery expenditures, followed by Johannesburg and Durban. Conversely, Johannesburg was the top spender on dining out, followed by Cape Town and Durban.

The favoured online grocery merchants among Discovery Bank clients are Checkers Sixty60, Pick n Pay asap! and Woolies Dash, with most online orders placed on Mondays. For in-person grocery shopping, Checkers, PnP and Woolworths came out tops, with Saturday being the busiest day.

When it comes to ordering in, MrD, Nandos, and Uber Eats topped the list, predominantly on Fridays; for dining out, KFC, McDonald’s, and Spur were the favourites, mainly on Saturdays.

TRAVEL

On the travel front, Discovery Bank clients outspent the average South African, likely due to the bank’s discounted travel rewards.

“Revenge travel” trends have stabilised, but rising costs have increased overall travel expenditures, particularly in emerging markets.

In the 2022/23 period, travel spending grew by 6% in Cape Town, 4% in Durban, and 3% in Johannesburg.

SHOPPING AND DIGITAL WALLET PAYMENT

South Africans are increasingly opting for mobile payments over traditional wallets, with adoption rates on par with or exceeding those in major cities around the world.

From 2021 to 2023, Durban saw a 47% increase in digital wallet spending, Cape Town 45%, and Johannesburg 42%. Moreover, Johannesburg residents use digital wallets in-store 1.75 times more frequently than the typical South African, with Cape Town following at 1.5 times and Durban at 1.3 times.

Lineshree Moodley, Visa’s Country Manager, noted: “From the study, we have observed how the growth in online and digital transformation has given rise to opportunities for economic growth and financial inclusion.

The report offers valuable insights to support institutions expertly address diverse consumer needs and enhance their customer experiences.”

According to the 4Sight Digital Banking Behaviour Survey, over 60% of South Africans prefer digital wallets for the convenience, enhanced security, and the ability to track payments easily.

These digital tools not only reduce the risks associated with physical wallets, such as theft or loss but also provide robust security measures.

This comprehensive view provided by SpendTrend24 underscores the distinctive spending trends within South Africa and offers valuable benchmarks for future economic strategies.

As South African cities continue to evolve in their spending behaviours, they not only reflect their own economic resilience but also their adaptability to global economic shifts.

Click here to learn more about the spend trends in South Africa.