Analysing South African savings trends: A comprehensive theoretical perspective (1980 – 2023)

S. Rulashe, S. Mishi, S. Khumalo & D. Hunter

Volume 5 Issue 3, September 2025

Abstract

Research has consistently highlighted the positive relationship between savings and economic growth, suggesting that nations with higher savings rates tend to enjoy more robust economic outcomes. However, South Africa’s gross saving rate of 19.6% in 2018 was the second lowest among BRICS emerging markets, raising questions about the underlying factors inhibiting savings. While high savings are often linked to economic prosperity, South Africa's experience complicates this assumption, suggesting that deeper socio-economic and behavioural dynamics may influence the relationship between savings and growth. This paper critically examines savings trends in South Africa from 1980 to 2023, using secondary data to assess the fluctuations in savings rates over time. Drawing on the Intertemporal Theory, the Life-Cycle Hypothesis, and the Theory of Planned Behaviour, the study explores not only the economic incentives but also the psychological and societal factors that shape individual and collective savings behaviour. By critically evaluating the impact of these factors, the paper seeks to uncover the complex interplay between savings behaviour and broader economic outcomes. The analysis will further consider the role of political and institutional changes, comparing the pre-and post-democratic dispensation to highlight the shifts in savings patterns and their implications for South Africa's economic trajectory. This critical examination aims to contribute to the broader understanding of how savings can be effectively promoted in South Africa, with a focus on the socio-economic and behavioural dimensions that drive or hinder savings accumulation.

Keywords

Author information & Contribution

S. Rulash. Corresponding author. PhD in Commerce Candidate. Department of Economics, Rhodes University, Makhanda, 6139, South Africa.. Email: jacksd401@gmail.com

S. Mishi. Head of Department, Department of Economics, Nelson Mandela University, Gqeberha, 6019, South Africa.

S. Khumalo. Deputy Head of Department, Department of Economics, Rhodes University, Makhanda, 6139, South Africa.

D. Hunter. Lecturer, Department of Economics, University of Fort Hare, Alice, 5700, South Africa.

"All authors equally contributed to the conception, design, preparation, data gathering and analysis, and writing of the manuscript. All authors read and approved the final manuscript."

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Funding

Institutional Review Board Statement

AI Declaration

Notes

Acknowledgement

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Cite this article:

Rulashe, S., Mishi, S., Khumalo, S. & Hunter, D. (2025). Analysing South African savings trends: A comprehensive theoretical perspective (1980 – 2023). International Review of Social Sciences Research, 5(3), 95-122. https://doi.org/10.53378/irssr.353237