As South Africans struggle to put food on the table during lockdown, mashonisas fill a crucial gap with business booming for loan sharks.
‘Business has been booming since this lockdown. People have expenses, but they don’t have money. That’s where I come in.”
“They use unlawful tactics, such as retaining consumers’ IDs, Sassa [SA Social Security Agency] cards and bank cards as a collection method, and usually resort to bullying tactics and threats to enforce payment from consumers,” Selibi said. The group also attributed increased expenses to children and workers being at home during the Covid-19 coronavirus lockdown.
The group also found that “with income having been suspended for many workers and insufficient top-ups on social grants, women with no saving buffers have to take on higher levels of debt”. “It’s hard for me to believe them when they say they’ll pay me back. That is why I’ve resorted to giving out loans only to those who have working permits during the lockdown. Business has been slow because I lend money to fewer people,” he said.
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