Interest rate relief offers little respite as households struggle against economic headwinds

While the Consumer Price Index (CPI) rose by only 0.2% to June 2025, food inflation surged to 5.1%, largely driven by sharp increases in red meat prices, following supply constraints caused by the foot-and-mouth disease outbreak. Fruit and vegetable prices rose by 13%, and electricity costs increased by 11%, compounding the financial pressure on poor households.

The cost of everyday essentials, including groceries, electricity, utilities, and transport, continues to rise month after month, steadily eroding the disposable income of already overburdened households. This signals tougher times ahead, as economic storm clouds gather.

Statistics South Africa (Stats SA) reports that the proportion of households experiencing moderate to severe food insecurity increased from 15.8% in 2019 to 19.7% in 2023. Severe food insecurity also rose from 6.4% to 8.0% during the same period. The Human Sciences Research Council (HSRC) reported in early 2025 that 28.8% of children under five suffer from stunting, and 1,000 children die each year due to preventable acute malnutrition.

Although South Africa is a net exporter of food, the reality at household level tells a very different story. As the disposable income of poor households shrinks, families are left with less money for food and other essentials, fuelling a sharp rise in household food insecurity and malnutrition. This stark contradiction underscores that the crisis is not about national food availability, but rather about household access to food, driven largely by poverty and deepening inequality.

South Africa continues to grapple with persistently high unemployment and sluggish economic growth, underscoring deep structural challenges which, if not addressed, could lead to a mounting socioeconomic crisis.

The South African Food Security Index 2024, developed by economists from Stellenbosch University, indicates that food security is at its lowest point in over a decade. The index, which evaluates food availability, access, utilisation, and overall stability from 2012 to 2023, shows a significant drop from a peak of 64.9 in 2019 to 45.3 in 2023. The report notes that there is a “deepening of food insecurity across the country, with child hunger being a particular area of concern.”

While the full impact of the USA’s tariffs on South Africa is yet to be felt, economists are already anticipating slower economic growth, rising unemployment, and a prolonged recovery period. Efforts are no doubt being explored to attract alternative markets, but these will likely take several months to a few years to develop.

South Africa requires sustained economic growth of 5–6% to generate sufficient employment and reduce income poverty. However, in the short to medium term, social safety nets such as grants and feeding programmes lack the scale and capacity to address these challenges comprehensively.

South Africa wastes a staggering 10.3 million tons of edible food each year, which is particularly alarming given our challenging socioeconomic circumstances and the climate impacts of food loss and waste. To combat this, many countries are implementing laws aimed at reducing food loss and waste.

One prominent example is France’s Garrot Law, passed in 2016, which is widely regarded as one of the most progressive and pioneering food waste legislations in the world. This law prohibits the destruction of edible food and requires that such food be donated to redistribution organisations.

FoodForward SA is among a growing number of like-minded organisations preparing to engage with the national government on similar legislation. Interventions like these are crucial if we are to avoid a looming socioeconomic crisis.