End of work from home in South Africa

South Africans have returned to the office, with data indicating that the majority are now working five days at the office. Along with this, spending on fuel has grown. 

This is feedback from Discovery Bank and Visa, which combined forces to produce the SpendTrend 25 report detailing how South Africans spend their money. 

The report uses data from Discovery Bank clients and Visa cardholders to analyse the trends in spending behaviour, including how South Africans spend their money. 

Discovery Bank CEO Hylton Kallner explained that the aim is to use this data to inform the new products and services it develops and improve its existing product set.

The key trend flagged in the report is that consumer spending is coming under renewed pressure in South Africa despite a decline in inflation. 

Kallner explained that average spending per card is flat year-on-year and trended downwards throughout 2024. The growth in spending was below the headline inflation, with consumers spending less in real terms.

Most disposable income in South Africa goes towards groceries, fuel, travel, and eating out. One of the fastest-growing areas of spending is fuel, which increased by nine percentage points year-on-year in 2024 despite declining fuel prices. 

The bank attributed this to the return to the office in South Africa, with regular commutes becoming more common. 

Fuel prices have dipped on average, and many clients now settle for convenience over a margin of economy when deciding when to fill up.

Discovery Bank also tapped into data from Discovery Insure to analyse South Africans’ driving habits further and determine why spending has increased sharply. 

Data from Discovery Insure shows that the average number of trips South Africans take per month has returned to pre-pandemic levels, indicating the end of working from home. 

It also revealed that over 60% of its clients are back in the office for a full work week, with nearly all back in the office for the majority of the working week. 

The average trip length has also steadily increased towards pre-pandemic levels, with the average kilometres travelled per month also picking up. 

On average, in 2024, an average Discovery Insure client took 118 trips per month, drove 1,100 km per month, and spent 35 hours in the car. 

Discovery Bank data also showed that wealthier South Africans tend to spend more on fuel than lower-income clients. 

This can be attributed to richer individuals driving larger cars that consume more fuel and less awareness of fuel consumption, as it makes up a smaller share of their disposable income. 

It may also indicate that these individuals are willing to travel further for experiences and drive for the sake of it. 

Data from the bank also shows that as fuel prices have steadied in the past two years, there is less of a rush to refuel on Tuesdays ahead of the Wednesday price hike. 

The increase in spending on fuel is shown in the graphs below, alongside the recovery of driving to pre-pandemic levels.