Consumers in South Africa can breathe a small sigh of relief this December after fuel price cuts were announced earlier this week.

Citizens had to contend with a tough year as inflation caused a cost-of-living crisis, elevated interest rates and soaring fuel prices, with things being further exasperated by rolling blackouts imposed by the ailing state-owned power utility, Eskom.

Neil Roets, the CEO of Debt Rescue, told “Business Report” that while the fuel price decreases were a welcome relief, two-thirds of the nation were struggling to put food on the table.

He said that for most of the nation, a lean festive season table awaited this year.

“Because of the relentless high costs of living, two-thirds of the nation are now struggling to put enough food on the table to feed their families,” says Neil Roets, CEO of Debt Rescue.

While the reduced fuel price offers some light relief, food prices continue to escalate at an unsustainable rate, as witnessed by the Pietermaritzburg Economic Justice & Dignity (PMBEJD) Group in its month-on-month report regarding the average cost of the Household Food Basket – which increased by another R17.05 (0,3%), from R5 297.58 in October to R5 314.63 in November.

Foods that increased by 5% or more in November are: eggs (18%), chicken livers (5%), tomatoes (20%), apples (10%) and oranges (31%).

Year-on-year, the average cost of the Household Food Basket increased by R478.67 (9.9%), from R4 835,96 in November 2022 to R5 314.63 in November 2023.

Noteworthy is that 19 food items – all staple foods that families cannot do without – saw double-digit growth year-on-year, reflecting significant increases, with nine showing increases of more than 20%.

These are: potatoes (92%), eggs (68%), butternut (45%), oranges (36%), apples (28%), tomatoes (27%), rice (23%), chicken livers (23%) and bananas (20%).

The stand-out price hikes were seen in potatoes (now almost double the price of last year) and eggs, which have traditionally been the most cost-effective sources of carbohydrate and protein, relied on by families to provide affordable nourishment at the meal table.

“It is understandable that the price of eggs has skyrocketed due to the repercussions of the avian flu pandemic, but the fact that authorities in the food industry have not done everything in their power to contain the price of items like potatoes, rice, tomatoes and bananas is unacceptable,” Roets said.

According to the Bureau for Food and Agricultural Policy, South Africa experienced a 24% reduction in potato volumes due to the impact of load shedding on the ability to irrigate, which is why prices have shot up.

The PMBEJD’s Mervyn Abrahams said that as per its latest calculations, electricity and transport took up 59.6% of a worker’s wage, and food was bought after transport and electricity had been paid or set aside.

In November 2023, the PMBEJD calculated that workers’ families would have underspent on food by a minimum of 51.3%.

For the poorest 60% of South African households, the annual rise in living costs that supersedes headline inflation, is devastating.

With half their income earmarked for food, the households are exceptionally vulnerable to inflationary pressures.

Food price inflation puts a nutritious diet out of reach for millions of South Africans.

According to research commissioned by the Shoprite Group, released in October 2023, by 2025, nearly half of South Africa’s population will be food insecure.

The retail giant said that by 2025, 48.96% of the South African population might not have enough food to eat.

“Hunger and food poverty is is the real threat to the nation as the year draws to a close,” Roets said.

“The warning signs have been there throughout the year, and we, along with other concerned industry leaders have raised our voices time and again. Right now, around 55% of South Africans live under the upper-bound poverty line of R1 558 per month. How high does this figure need to go before serious action is taken?” Roets said.

He said that with the relentless increases in food prices, a growing number of people were resorting to credit facilities to meet their monthly grocery bill requirements.

“We foresee that this debt will increase over the holiday season as desperate South Africans try to bring some festive cheer to the table, digging themselves even deeper into debt.”

“My advice to those who cannot find their way out of the debt trap, is to seek help through debt review, where a registered debt counsellor can assist you to manage your financial predicament. This has been a very successful solution for thousands of consumers who are plagued by over-indebtedness,” Roets said.

BUSINESS REPORT