South African non-financial companies are holding a record R1.8 trillion — about $96 billion — in cash deposits. This level of corporate cash hoarding signals a shift toward financial caution amid weak business confidence and uncertain economic conditions.
Many firms are opting for liquidity rather than investing in long-term expansion or capital projects. Confidence has remained low since the COVID-19 pandemic, and issues such as policy uncertainty, energy supply constraints, and overall slow demand are causing businesses to delay big decisions and stick with cash.
Despite the massive savings, some companies are still borrowing selectively, especially in sectors like mining and consumer goods, where demand or input-cost advantages make credit more attractive. Household borrowing and consumer confidence remain weak, reflecting hesitation on both sides of the economy.
Economists warn that while this strategy may preserve resilience in the short term, it also risks prolonging economic stagnation. Without investment in production, infrastructure, and innovation job creation may lag and economic growth could remain subdued.
If and when confidence returns, these cash-rich firms could become major drivers of investment and growth across South Africa.