Tag Archives: Money

Crippling Debt versus Godly Contentment

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— Richard Peskett

The audio version of this article is available here: YouTube, Apple Podcasts, or Spotify.

Ayana (her name has been changed to protect her anonymity) was so grateful to her boss for her Christmas bonus that she knelt on the ground to thank her. Yet before the end of the month, all this extra money had been spent on “things” that she delighted to boast about on social media. One month later, and she was in debt again.

The debt that Ayana experiences is like a dark hole from which it is impossible to escape. Such personal debt enslaves a person; it brings sorrow, anxiety, and even despair. And it is all too common in Africa. 

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Is Cash Really King?

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–– Mark Christopher

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Recently as I returned from a bike ride with my cycling mate, we stopped at a new café that recently opened for a cup of coffee and some stimulating conversation. When it came time to pay the bill, much to our surprise, the waitress announced that they were a cashless business. While we both carry a bit of cash for such an occasion, neither of us had a bank card with us. Fortunately, the establishment in question accommodated us. Not two weeks later Woolworths publicly announced that their coffee shops, attached to their stores, were going cashless. 

Whether we like it or not, technology is moving us to a more cashless society. The Payments Association of South Africa is currently implementing strategies to make South Africa cashless by 2030. It remains to be seen if such an ambitious goal is reached in such a short time. The justification for this move toward a cashless culture is that it is much safer for all concerned and it is less expensive for businesses if they do not handle cash. The banking sector certainly agrees with this. But while there is a great deal of truth in such rationale, there are numerous pitfalls to a cashless society. Here are but a few challenges in this rush to a cashless destination:

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Our Dire Debt Dilemma

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–– Mark Christopher

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Proverbs 22:7 declares the following truism: “The rich rules over the poor, And the borrower becomes the lender’s slave.” This truism extends to individuals and governments alike. Last week’s mid-term budget speech on November 1st by the minister of finance was a good reminder of the peril of falling prey to the pernicious consequences of the debt cycle whereby more is spent than one has money for. 

Over the last several years, the South African government has continued to spend far more than it collects in annual tax revenue. This has snowballed with government having to borrow money it doesn’t have to make up for the annual shortfalls. This money is borrowed from various global financial institutions like the World Bank and the International Monetary Fund. 

The South African government is now nearly 5 trillion rands in debt and growing annually. Since the budget speech in February of this year, the debt has grown by another 250 billion rands. This means that every man, woman, and child in South Africa owes 83,333.00 rands per person (calculated by 60 million people). 

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