Alex Cook, Chief Executive Officer of fintech company Wealthbit

The fallout from the escalating conflict between the US and Iran is being felt around the world, including by already-constrained South Africans.

Both international relations and co-operation minister Ronald Lamola and mineral and petroleum resources minister Gwede Mantashe have spoken about the dangers the conflict poses to global markets and supply chains, and, ultimately, consumers.

Lamola told a Southern African Development Community meeting that the region “will not emerge unscathed from this. Our public finances are likely to come under even greater strain and it’s 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 could have on fuel prices.

The impact of higher fuel prices is felt throughout the economy as increased transport and energy costs push up prices, putting even more pressure on South African workers as their monthly expenses become more onerous.

“Financial stress is the single most consistent source of daily pressure employees carry into work. It’s widespread, and it directly impairs the things you care about: Focus, retention and performance,” says Alex Cook, Chief Executive Officer of fintech company Wealthbit.

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 work hours, translating into 19.5 working days each year, with the inevitable effect of decreased productivity.

“That’s most of our people, most of the time. And it affects work,” warns Cook.

“The maths is simple: People who are worrying about money are not fully present. Not because they lack commitment, but because the brain doesn’t compartmentalise well under financial threat. It shows up as presenteeism, distraction, motivation loss, and earlier job seeking,” he says.

Companies don’t deal with only reduced productivity but also an increased the churn rate, with the report finding that financially stressed employees are twice as likely to look for a new job, while 70% are considering job changes because of financial pressure.

Replacements do not come cheap, costing between 50% and 200% of annual salary, adding to companies' long list of expenses.

“This is why reducing financial stress is a retention strategy with a measurable return,” says Cook, adding that financial wellness benefits should not be seen as alternatives to existing benefits, such as medical aid and pension funds, but rather as additional offerings that can address the gap in many employees’ financial literacy.

In the face of financial distress, knowledge can make all the difference. The Wealthbit 2026 Employee Benefits Report found that employees who know how to manage their money are more likely to engage with retirement planning, make more informed medical aid choices and access financial wellness programmes support before the metaphorical wheels come off.

Financial wellness programmes can target all employees - across salary bands and life stages - 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 dis-engaged employees.

For further information please visit https://wealthbit.co/