Consumers have experienced a decline in their income and savings<\/strong><\/p>\n![\"\"](\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2020\/05\/McKinsey1-1.png\")
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A new poll from McKinsey & Company shows how South Africans have struggled financially during the country’s stringent lockdown period.<\/p>\n
South Africa moved to Level 4 of the national lockdown on 1 May, with all agriculture, hunting, forestry, fishing and related services – including the export of agricultural products – permitted to operate.<\/p>\n
This allowed at least 1.5 million workers to return to their jobs. It is unclear when the government expects to move to level 3, and is dependent on the Covid-19 infection rate.<\/p>\n
Data collected by McKinsey & Company from 21 to 24 April 2020, shows that the vast majority of South Africans, at 89%, believe that personal and financial implications of Covid-19 will last beyond two months, whilst 22% believe it will last for more than a year.<\/p>\n
More than 60% of South Africans said they have experienced a loss of income during the crisis and expect to cut back aggressively on spending in all categories except groceries and home entertainment, with 65% refraining from making purchases they would otherwise make, due to uncertainty about the economy.<\/p>\n
More than half of respondents said their job feels less secure because of the coronavirus pandemic, while 62% said their income has been negatively affected.<\/p>\n
Neil Roets, chief executive of Debt Rescue, said that the company has seen\u00a0a significant increase in enquiries for debt counselling since the implementation of lockdown.<\/p>\n
“There was an uptick at the beginning of lockdown at Level 5 (27 May), but has increased notably as we approached the move to Level 4 and even more so since we have entered Level 4.<\/p>\n
“There are still many consumers that are very uncertain regarding their job security and salaries, due the massive economic impact of the lockdown on businesses and subsequently employees,” he said.<\/p>\n
Consumers are feeling the financial impact<\/strong><\/p>\n Consumers have experienced a decline in their income and savings<\/strong><\/p>\n<\/a><\/p>\n