Mbabane – As Black Friday spending tapers off and the festive season begins, economist Sanele Sibiya has urged consumers to make deliberate and disciplined financial decisions to avoid the financial shocks that often follow in January.
Sibiya, speaking at Eswatini TV’s Kusile breakfast show, noted that consumer confidence was expected to be higher this year, boosted not only by annual bonuses but also by the recent salary review, which significantly increased disposable income. With Black Friday positioned just before the December holidays, he said many consumers found it easy to overspend, believing more income was still coming.
“Black Friday occurs at a time when many people are optimistic because they expect the November and December pay cheques,” he said. “The timing was engineered to get the most out of people.”
However, Sibiya warned that this surge in spending often creates a misleading picture of economic recovery, describing it as a “false signal” or a temporary spike rather than sustained economic improvement. He explained that consumers tend to hold back their spending throughout the year in anticipation of Black Friday deals, which artificially inflates spending levels for a short period.
“It gives pseudo hope of an economic recovery, but it’s not sustained. It’s what we call a noise variable in economics a shock that temporarily pushes spending up,” he explained.
Sibiya cautioned that the greatest financial vulnerability after the shopping rush is the neglect of essential expenses. Many consumers, he said, divert money meant for rent, utilities, food and other necessities toward non-essential purchases such as furniture and electronics.
“We don’t usually shop for the basics on Black Friday, but we overspend. That means you take money meant for rent or food and use it to buy a TV. Afterward, you struggle with the everyday expenses,” he said.
While the temporary closure of schools has eased some pressure on households, especially in daily expenses such as transport and lunch money, the economist warned that utilities like water and electricity remain constant and unforgiving. These costs do not go on sale, he emphasised, and failing to plan for them can leave families financially strained.
According to Sibiya, the post-holiday financial slump is predictable and preventable. January brings school fees, policy premiums, new school placements, and transport costs all of which require early preparation.
“People overspend in December as if it’s Y2K again, like there is no 2026,” he said. “But the world continues in January. We must plan.”
He stressed that families with school-going children should prioritise setting aside money now, well before the academic year begins. Waiting for the first January pay cheque, he said, is a risky approach that often results in borrowing, panic, or delayed payments.
Sibiya encouraged the public to enjoy the holidays but to remain grounded and realistic about the financial responsibilities that lie ahead.
“We deserve to relax and enjoy the festive break, but let us not live as if January will solve itself,” he advised. “Plan, save, and spend with intention.”
Discussion about this post