PODCAST | BankservAfrica’s BETI shows slowing economic activity in February

The dip in economic activity revealed by BankservAfrica’s national transaction data is the focus of this edition of Business Day Spotlight. 

Host Mudiwa Gavaza is joined by Elize Kruger, an independent economist.

Kruger shares the findings of BankservAfrica’s most recent reports on transaction activity in SA flowing through its system as an intermediary between banks.

The BankservAfrica Economic Transactions Index (BETI) moderated further in February to 136.4, down 0.6% from January’s 137.2 and returning to September’s level, but still 3.1% higher year on year. 

The BETI measures the value of all electronic transactions cleared through BankservAfrica, Africa’s largest automated clearing house, at seasonally adjusted real prices.

Kruger says the BETI has been in “muddle-along-mode” as it has struggled to gain momentum since May 2024, reflecting SA’s weak economic performance in 2024 and early 2025.

She highlights how comprehensive the index is as an economic indicator.

The index also is an early indicator of economic growth and activity, predicting quarterly GDP three months in advance.

“While the ultimate outcome and impact on the South African economy are still unclear, it is unlikely to be favourable and as such represents a downside risk to the real GDP growth forecast of 1.5% for 2025,” says Kruger.

“Furthermore, the 2025 national budget ... could be considered to be growth-negative in the short term given the announcement of R28bn in additional taxes to be collected, of which the bulk will likely have a negative impact on consumption expenditure.” 

The discussion includes: BankservAfrica’s recent transaction reports; a view of the2025 national budget; buying and spending patterns in the country; insights that can be drawn from the data; and an economic outlook for the rest of the year.

Join the discussion: 

Business Day Spotlight is a MultimediaLIVE Production.

Subscribe: iono.fm | Spotify | Apple Podcasts | Pocket Casts