South Africa’s national debt has surged from R1.6 trillion (43% of GDP) in 2014 to R5.6 trillion (75% of GDP) in 2024, a 250% increase over a decade. Debt servicing now costs R356 billion annually, consuming over 20% of government revenue. Projections indicate the debt-to-GDP ratio will peak at 75.3% in 2025/26 before gradually declining.
This escalating debt restricts government spending on public services and highlights the need for fiscal discipline and growth strategies. For individuals, safeguarding personal finances through diversified income, wise investments, and comprehensive insurance is crucial in navigating the challenges posed by this financial landscape.