In April, private sector credit grew by 3.6% year-on-year, up from 3.45% in March. This marks the strongest growth in borrowing since September last year.

The rise in credit uptake follows SARB’s decision yesterday to reduce the repurchase rate by 25 basis points, lowering it to 7.25%. The lower interest rates are expected to make borrowing more affordable for consumers and companies.

Patrick Mathidi, from Aluwani Capital, said the increase in borrowing reflects renewed confidence in the local economy, with more businesses and households willing to take on credit as conditions improve.

--ChannelAfrica--