The South African Reserve Bank has reported a notable increase in credit extension to the private sector in April 2025, with year-on-year growth of 5.6%. This marks the highest expansion in over 18 months and is being interpreted as a sign of recovering business confidence and increased consumer activity.

Most of the credit growth was recorded in the retail, agriculture, and construction sectors. Analysts suggest that improved access to credit could support small business growth and job creation, but caution against the risk of over-indebtedness, especially among households. The SARB noted that while credit conditions are loosening, lenders should remain vigilant and maintain prudent lending standards.