Deon Tromp | Fixing South Africa's savings crisis starts with fair returns

For too many South Africans, saving money has become an act of faith rather than a financial strategy. We are told from an early age that saving is the foundation of a secure future – for emergencies, for education, for retirement. Yet, in the current economic climate, this advice has lost its practical value. When inflation steadily outpaces savings returns, every rand tucked away quietly loses its worth.

The reality is simple: saving, as it currently exists for millions of South Africans, is broken.

When saving means falling behind

In South Africa, inflation has hovered between 4% and 6% for several years, while most bank savings accounts offer interest rates below 3%. That means a person who diligently saves R1,000 a month is effectively watching the purchasing power of that money erode over time.

Add to this the burden of account fees, transaction charges, and restrictive minimum balances, and saving becomes an exercise in futility for low-income earners. For about 11 million South Africans who are unbanked or underbanked, traditional financial products simply don't make sense.

Instead, many turn to cash savings, informal stokvels, or short-term credit - mechanisms that may feel practical in the moment but often undermine long-term wealth-building. The result is a system that rewards those who already have wealth while leaving the rest further behind.

Reclaiming the purpose of saving

If we want to rebuild a savings culture in South Africa, we must start by making saving worthwhile again. That means providing returns that beat inflation, removing unnecessary fees, and giving people transparent, easy-to-use tools to manage their money.

This is where technology has begun to change the game. Digital platforms such as InstaPay Gini - which offers up to 6% interest on wallet balances with zero monthly fees - are proving that inclusive innovation can be both practical and profitable.

In inflation-beating return doesn't just preserve value; it restores dignity. For a domestic worker, a freelancer, or a pensioner, the knowledge that their savings can actually grow is more than a financial benefit - it's psychological empowerment. It tells people: your effort matters, your money counts, and your future is within reach.

Financial inclusion is not charity

When we talk about financial inclusion, we often focus on access - getting more people to open accounts or use digital tools. But access without value is meaningless. True inclusion happens when people participate confidently in the financial system because they see tangible benefits.

Gini's approach - simple, mobile-first, and reward-driven - bridges this gap. Anyone with a smartphone can open an account, start saving and earn fair interest. No paperwork. No fine print. No fear of hidden deductions.

For the growing number of South Africans working in the informal, freelance, or gig economy, this is a lifeline. Traditional investment products are often too complex, too expensive, or simply out of reach. By contrast, digital wallets like InstaPay Gini offer a safe entry point into wealth-building; an accessible on-ramp to a financial system that finally feels designed for them.

The social multiplier of fair returns

When savings grow faster than prices, something powerful happens: behaviour changes. Saving becomes habitual, not aspirational. Communities with strong saving habits become more resilient to economic shocks. Families can plan ahead, invest in education, and start small businesses.

The stokvel economy offers a vivid example. Each year, millions of South Africans contribute to stokvels that collectively hold billions of rands. Yet much of this money sits idle in low-interest accounts. With digital wallets offering inflation-beating returns, those same stokvels could become engines of community wealth creation.

It's not hard to imagine the impact: higher household savings rates, greater local investment, and a stronger foundation for small business growth. Financial inclusion, in this sense, is not just a moral goal - it's an economic growth strategy.

A future where saving works again

The challenge before us is not just to encourage people to save, but to rebuild the system so that saving makes sense. Inflation-beating returns are not a luxury; they are a necessity for any inclusive financial future. By combining technology, transparency, and fair value, saving can once again be a tool for upward mobility.If South Africa is serious about closing its wealth gap and fostering sustainable economic participation, it must start by fixing the fundamentals. Saving should reward effort, not punish it. Because when ordinary South Africans can finally grow their money faster than prices rise, we don't just repair our savings culture, we rebuild belief in the promise of progress itself.

*Deon Tromp is the CEO of Omnea, a fintech infrastructure company.