Skip to main content
Invest Now
012 012 5270
Copyright © Aluma Capital (Pty) Ltd. All rights reserved.
Aluma Capital (Pty) Ltd is a registered Financial Services Provider (FSP 46449) in terms of The Financial Advisory and Intermediary Services Act (37 of 2002)
Frederick Mitchell, Chief Economist | Aluma Capital (Pty) Ltd
Frederick Mitchell
February 24, 2025

View on Demand in the Economy

Retail Sales Performance

December 2024

In December 2024, South Africa’s retail sales rose 3.1% year-on-year, surpassing expectations and indicating a rebound in consumer demand. The SACCI Business Confidence Index also increased, and recent interest rate cuts promise to further stimulate demand. Overall, this positive momentum supports economic growth heading into 2025.

Retail sales in South Africa surpassed expectations in December 2024, increasing by 3.1% year-on-year, well above the predicted 2.6% rise. This unexpected growth suggests a moderate rebound in consumer demand following the Black Friday sales in November.

The SACCI Business Confidence Index also improved, rising from 118.1 to 121.0 points in December, indicating increased demand. Additionally, lower consumer inflation and a recent 50-basis point interest rate cut by the South African Reserve Bank in January 2025 could further boost demand in the coming months.

Key drivers of retail sales growth included:

  • General Dealers: Increased by 2.0%, contributing 0.9 percentage points to overall growth.
  • Textiles and Clothing: Grew by 7.8%, adding another 1.8 percentage points.

This encouraging growth in retail sales signals a positive outlook for the economy, especially as fourth-quarter economic data continue to exceed expectations. The interest rate cuts in September and November appear to have eased financial pressures on households, showing positive results. Furthermore, withdrawals from the two-pot system have positively influenced demand from October through Black Friday at the end of November 2024. The sustained consumer demand trend in December 2024 bodes well for economic growth and job creation as we head into 2025.

Back to News

More Coverage

Private Sector Credit Extension (PSCE)

September 2025
In September 2025, credit demand increased by 6.0%, slightly surpassing the previous month’s growth yet remaining just below the market expectation of 6.1%. Since the interest rate cuts began in September 2024, overall credit growth has gained momentum, with most subcategories recording increases from July to September 2025.

South Africa’s Economic Crossroads

Reforms, Growth, and the Path to Fiscal Stability
As South Africa prepares for the Medium-Term Budget Policy Statement (MTBPS) on November 12th, 2025, the nation faces a pivotal moment. The government’s ability to fund ambitious initiatives like the National Health Insurance (NHI), the R100 billion transformation fund, and infrastructure revitalisation depends fundamentally on creating a conducive economic environment that stimulates growth and broad-based prosperity.

Consumer Inflation

September 2025
In September 2025, the Consumer Price Index (CPI) saw a modest rise to 3.4%, slightly up from 3.3% in August, yet just below the analysts’ forecast of 3.5%.

Unleashing South Africa’s True Potential

A Bold New Blueprint for Sustainable Growth
South Africa’s economic trajectory is at a critical crossroads. After more than a decade of sluggish growth—averaging below 1% annually—the country faces an urgent need for bold, strategic action to unlock its full potential. Despite efforts at structural reform, global rating agencies like Moody’s confirm that current initiatives are insufficient to propel South Africa towards the government’s ambitious target of 3.5% annual growth by 2030. The reality is stark: unless we change course, we risk falling further behind.

Mining Production and Sales

August 2025
In August 2025, mining activity in South Africa declined by 0.2% year-on-year, following a 5.1% increase in July.
0:00
0:00