SONA Economic Wins And Will They Pay the Bills?

SONA Economic Wins And Will They Pay the Bills?

SONA 2026 promises recovery, but will it ease debt, unemployment, and rising living costs for ordinary South Africans? Sebastien Alexanderson unpacks.

17 February 2026: South Africa may be celebrating a stronger rand, easing inflation, and improved investor confidence, as reiterated by President Cyril Ramaphosa’s State of the Nation address last week, but debt experts warn that many households are still living in a “parallel economy” where the recovery doesn’t reach the kitchen table.

That’s the caution from Sebastien Alexanderson, Head of National Debt Advisors, who says SONA 2026 offered encouraging signs, but the real test is whether those signals translate into jobs, cheaper credit, and functioning services.

“SONA sounded positive, and parts of it are,” Alexanderson said. “But for millions of people, the economy isn’t felt in the stock market or bond yields. It’s felt in school shoes, electricity units, and the month-end scramble.”

National Treasury projections have gross loan debt stabilising at around 76.2% of GDP in 2025/26, with debt-service costs consuming a major share of revenue.

Put simply, a big portion of the government’s money goes to interest payments before it reaches people.

“When debt-service costs stay high, government has less room to fix water pipes, upgrade clinics, or improve policing, unless taxes rise or spending gets cut somewhere else.”

SONA also touched on the economy’s biggest missing piece. Unemployment in South Africa is still brutal.

Stats SA reported 31.9% official unemployment in Q3 2025, with youth unemployment far higher at 58.5% for ages 15–24 and 38.4% for ages 25–34.

“If you’re unemployed, lower inflation doesn’t feel like relief, it feels like a statistic,” Alexanderson said. “You can’t ‘macroeconomy’ your way out of an empty fridge.”

He said the good news was certainly welcome. “SONA pointed to easing inflation and falling interest rates, and for households drowning in debt, that is not small.”

When interest rates drop, it can mean lower bond repayments, cheaper car finance, reduced credit card pressure over time, and better chances to refinance or restructure debt.

But Alexanderson cautions that many households, especially those already behind on payments, may not feel relief immediately.

“As much as a small rate cut helps, if you’re juggling food, transport, and unsecured debt, you’re still in survival mode,” he said.

Alexanderson offered five tips for ordinary South Africans following SONA 2026:

• Judge the speech by delivery, not promises, watch what actually changes in your area.
• Use falling interest rates to reduce debt, not to take on more credit.
• Focus on income stability,  in a 30%+ unemployment economy, job security is everything.
• Hold local government accountable, water, roads, and safety affect your wallet directly.
• Treat SONA as your annual financial reset, review your budget, cut waste, and build a buffer.

“If the economy is truly turning a corner,” Alexanderson says, “South Africans should see it in their daily lives, not just in the headlines.”

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About National Debt Advisors:

National Debt Advisors is South Africa’s number one debt counselling company and is perfectly positioned to help South African consumers who are struggling with their finances become debt-free in under 60 months. NDA will negotiate with creditors for reduced monthly interest rates and extended terms – ultimately consolidating all debt repayments into one lower monthly instalment - whilst protecting consumers from harassment by creditors, securing their assets against repossession, and leaving them with more money left to live on. NDA will help South Africans gain their financial freedom.

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