Why essential services must be at the centre of SA’s financial inclusion agenda

For millions of South Africans, the end of the month is less a date on the calendar than a balancing act.

A household may have enough money for groceries, but not enough for electricity. A commuter may need to get to work, but still has to find money for transport.

A parent may need to keep the lights on so children can study, while also buying airtime to stay connected, transact or look for work.

These daily choices now define the lived reality of households operating on tight and often irregular cashflows. Inflation, debt and disposable income remain important measures of consumer pressure, but they do not fully capture what happens when essential needs arise before income arrives.

The timing mismatch

Electricity, water, transport and connectivity are the basic infrastructure of modern life. Without electricity, food spoils, learning is interrupted and small businesses lose trading hours. Without transport, people cannot get to work.

Without airtime or data, people are cut off from banking, job opportunities, family support networks and essential services.

Access to essential services should therefore be understood as a foundation for economic participation.

The challenge is that traditional financial systems have not always been designed around this reality. Many consumers who are active participants in the prepaid economy, who transact regularly and who manage their obligations responsibly, may still fall outside conventional credit assessment frameworks.

Others may simply need short-term flexibility to bridge a specific essential service need at the right moment, through a channel they already know and trust.

This is where South Africa needs a more practical conversation about innovation, responsibility and partnership.

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Government has an essential role to play in protecting vulnerable households, ensuring fair regulation and investing in infrastructure. The private sector also has a responsibility to help develop solutions that are relevant to the way people actually live and transact.

That means moving beyond generic financial products and towards contextual solutions embedded in everyday consumer behaviour. It means using data responsibly to understand affordability and need.

It means designing access mechanisms that are immediate, transparent and proportionate. Financial inclusion must ultimately be measured by whether people can access the services that keep them economically active.

Digital advances for essential services

South Africa has a unique opportunity in this regard. The country has one of the most dynamic prepaid and digital payments ecosystems in the world.

Millions of consumers already buy electricity, airtime, data and other essential services through digital and physical distribution networks.

These channels generate valuable behavioural and transaction insights that, when used responsibly, can support better decision-making and more appropriate forms of access.

Extending access to essential services through responsible short-term advances is a case in point. It is a natural extension of models South African consumers already know and use.

Consumers have long had access to airtime advance products offered by mobile network operators, allowing them to bridge temporary shortfalls and remain connected until their next recharge.

Applying similar principles to other essential services reflects both how consumer needs have evolved and the reality that electricity, data and connectivity have become fundamental to economic participation.

This should never become a licence for overextension. Responsible innovation must be built on clear affordability principles, real-time data, transparent terms and repayment mechanisms aligned with existing consumer behaviour. The goal should be to provide flexibility without creating a cycle of harm.

That balance is critical. In a pressured environment, consumers are often forced to rely on informal borrowing, family support or high-cost alternatives when essential needs arise unexpectedly.

A more responsible model would offer short-term support that is specific, limited and linked to genuine essential services. It would help households smooth temporary cashflow gaps without pushing them into unsuitable long-term commitments.

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There is also an important dignity component. Consumers should not have to choose between being financially excluded and being exposed to irresponsible products.

They deserve solutions that recognise their behaviour, their context and their need for flexibility. A person who has consistently purchased prepaid electricity or airtime, for example, may have a data footprint that says far more about their day-to-day financial reliability than a traditional assessment might reveal.

For businesses, the opportunity is to build platforms and partnerships that solve real problems rather than simply sell products. Telecommunications companies, retailers, utilities, fintechs and payment networks all sit close to the consumer. Each has a role to play in making essential services more accessible through trusted channels.

For policymakers and regulators, the opportunity is to encourage innovation while maintaining strong consumer safeguards. Regulation should prevent abuse, while also creating space for responsible models that improve access, transparency and resilience.

For consumers, the benefit is straightforward: greater flexibility at the moments when it matters most.

No single solution will resolve South Africa’s cost-of-living pressures. Electricity prices, unemployment, infrastructure constraints and weak household income growth are structural challenges that require sustained action.

But while those larger issues are being addressed, households still need practical tools to navigate everyday pressure.

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That is why the next phase of financial inclusion must focus on essential service access. It must ask a simple question: how do we help people remain connected, mobile, productive and safe when cashflow is under strain?

The answer will require collaboration. It will require better use of data. It will require businesses to act responsibly and regulators to remain engaged. It will also require us to recognise that innovation is most valuable when it solves a real human problem.

South African consumers are asking for breathing room.

If we can build systems that provide that breathing room responsibly, we will support households through difficult periods while strengthening the foundations of economic participation itself.

Gavin Reuben is CEO of BluAdvance.