The AFSCI Index has been developed on behalf of Altron FinTech by Keith Lockwood, an independent economic consultant and adjunct faculty member of the Gordon Institute of Business Science.

We have released our latest Short-term Credit Impact Index, known as the AFSCI Index tracking the impact of short-term credit extension on the South African economy. The index is compiled independently by economist Keith Lockwood each quarter.

Based on National Credit Regulator (NCR) data for the second quarter of 2022, there was a significant increase of almost 10% in the AFSCI Index when compared to the first quarter of the year. However, relative to a year earlier, the index is down just over 1%.

In recognition of the need for data that provides more clarity on the financial disposition of households in general, and their ability to cope with debt in particular, Altron FinTech commissioned economist and economic advisor to the Optimum Investment Group, Dr Roelof Botha, to assist in designing this index.

Dr Roelof explains further: “The AFHRI comprises 20 different indicators, all of which are related to sources of income or asset values. The index is weighted according to the demand side of the short-term lending industry and calculated on a quarterly basis, with the first quarter of 2014 being the base period, equalling an index value of 100. All of the indicators are expressed in real terms, i.e., after adjustment for inflation.”