By: Hertha Ekandjo
While individuals typically turn to banks and cash loan service providers in what is often referred to as “Janu-worry” to kick-start the year, the first month of 2024 witnessed the slowest credit growth uptake by households since 2021.
According to economists at Simonis Storm Securities (SSS), households experienced a slowdown in credit growth during the same period, with growth decreasing to 2.6% year-on-year (y/y) in January 2024 from 3.0% y/y in December 2023.
The economists attribute the 2.6% y/y slowdown to sluggish demand for mortgage loans, which decreased to 2.2% y/y in January 2024 from 2.7% y/y in December 2023.
“Other loans and advances contracted to 1.1% y/y in January 2024 from a growth of 0.2% y/y in December 2023. However, overdrafts experienced positive growth of 19.2% y/y in January 2024,” states the SSS report.
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