In 2023, South Africa’s small and medium-sized enterprises (SMEs) found themselves facing a formidable challenge following a string of repo rate hikes.
These hikes pushed the interest rate to a high of 8.25% in May, where it stayed throughout the latter half of the year.
These increases, from the perspective of the South African Reserve Bank, was a weapon used to try and control inflation and stabilise the economy. However, it had huge impacts on businesses across the country.
The repercussions of the escalating interest rate on local businesses, particularly SMEs, have been profound.
Business owners have had to manage the decrease in consumer spending, while many have also had to put growth plans, including hiring new staff, on hold due to the rise in the cost of doing business.…
