The fallout of the escalating conflict between the US and Iran is being felt around the world, including by already beleaguered South Africans.
International Relations and Cooperation Minister Ronald Lamola and Mineral and Petroleum Resources Minister Gwed Mantashe have both spoken out about the threats confrontation Impacting global markets and supply chains and ultimately consumers.
Lamola told a meeting of the Southern African Development Community that the region “will not emerge from this unscathed. Our public finances are likely to be under even greater pressure, and it is our people who will bear the cost.”
Mantashe, speaking at the Southern Africa Oil and Gas Conference in Cape Town, highlighted the inflationary effects the war is having on fuel prices.
The impact of higher fuel prices is felt throughout the economy as increases in transport and energy costs drive up prices, placing even greater pressure on South African workers as their monthly expenses become more difficult.
Financial stress is the single most frequent source of daily stress experienced by employees at work. It's pervasive, and it directly impairs the things you care about: focus, retention, and performance.
According to the Wealthbit 2026 Employee Benefits Report, 80% of employees in South Africa worry about money most of the time and 56% of financially distressed employees spend more than three hours a week dealing with personal finances during working hours, which translates to 19.5 working days lost every year, with the inevitable impact of lost productivity.
This is most of our people, most of the time. And this affects work.
The math is simple: People who are worrying about money don't exist at all. Not because they lack commitment, but because the brain does not compartmentalize well under financial threat. This manifests as presenteeism, distraction, loss of motivation and looking for a job earlier.
Companies not only deal with lower productivity but also increased churn rates, with the report finding that financially stressed employees are twice as likely to look for a new job, while 70% are considering changing jobs due to financial pressures.
Replacements are not cheap, their costs range between 50% to 200% of the annual salary, adding to a long list of expenses for companies.
That's why reducing financial stress is a retention strategy with measurable returns. Financial wellness benefits should not be seen as an alternative to existing benefits like medical aid and pension funds, but rather as additional offerings that can address the gap in financial literacy of many employees.
In case of financial crisis, knowledge can make a huge difference. The Wealthbit 2026 Employee Benefits Report found that employees who know how to manage their money are more likely to engage in retirement planning, make more informed medical aid choices, and access the support of financial wellness programs before the metaphorical wheels come off.
Financial wellness programs can target all employees – across pay bands and living standards – to improve their financial literacy to help them feel more in control of their finances and reduce their cognitive load, saving companies the expense of managing or replacing disengaged employees.
*Cook is the chief executive officer of fintech company Wealthbit.
personal Finance