As the country continues to grapple with the high unemployment rate and the high cost of living, Human Rights organisation, Black Sash, says social grant beneficiaries are struggling to survive.
According to the organisation’s Advocacy Manager, Hoodah Abrahams-Fayker, grant beneficiaries are dependent on the lifeline from government but the amount they get is not enough as the food poverty line is currently at R 796.
“The child support grant of R530 and the SRD Grant of R370 falls way below the food poverty, which is the very basic needs to survive. The value of the grant has not increased to align with the cost of living in real terms that has diluted the impact of social grant as a strategy to alleviate poverty.”
In August, the youth unemployment rate in Mzansi increased to 60.80% in the second quarter of 2024 from 59.70% in the first quarter.
Abrahams-Fayker says the organisation recently conducted an interview on debt of social grant beneficiaries, which confirmed the difficulty of beneficiaries to survive on the grant money.
“…Â they have to resort to taking loans from informal lenders in desperation which is difficult to regulate and are privy to indebtedness because of loans.”
According to the Pietermaritzburg Economic Justice and Dignity Group’s latest report on Household Affordability Index, the cost of an average food basket has increased by nearly R30 in September.
It estimates that the average household food basket increased by R28.54 from R5.227.14 in August to R5 255.68 last month.
Some food items, which recorded some of the highest increases, include potatoes and bananas.
Chief Economist of the Agricultural Business Chamber, Wandile Sihlobo, has assured South Africans that while the numbers might seem bleak, food inflation has slowed over time, when one compares 2023 to 2024.
Sihlobo, however, does reveal that grain related food products and vegetables might have recorded a slight increase, due to factors such as low produce and the black frost, in July which hit Limpopo.
Investment Analyst- Fixed Income at Anchor Capital, Casey Sprake, says last month the UN Food and Agriculture Organisation’s Cereal Price Index rose 3.0% month on month, mainly due to higher wheat and maize prices.
International wheat prices increased, primarily due to excessively wet conditions in Canada and the EU.
Sihlobo has reflected on how poultry prices have slightly dropped following the avian flu last year and acknowledged that consumers are under pressure due to economic reasons to carefully consider what they spend their money on.
Looking at 2025, Sihlobo says they are looking at the agriculture sector to recover.
He adds that they’re optimistic that inflation will moderate at a much better pace, with the anticipated rains, which will contribute to the harvest season.
Economist, Professor Bonke Dumisa has also weighed in.
He says while many might call for salaries to match the cost of living, this won’t be possible.
In the same breath, Dumisa says what salary managers give themselves is concerning, as it contributes to inequality.
This conversation comes just days after labour federation, Cosatu, held a nationwide protest calling for decent jobs and living wages to become a reality.