Neil Roets, CEO of Debt Rescue, responded to the April 2025 Family Affordability Index with grave concern, warning that the figures mirror a “brutal fact”: thousands and thousands of South Africans can not cope financially. He highlighted a rising pattern the place customers are turning to bank cards and payday loans simply to purchase groceries, a transparent signal of monetary desperation. In keeping with Roets, this isn’t as a result of reckless spending—individuals are doing all the pieces proper, however rising prices are outpacing their means to outlive.
A very troubling element within the newest affordability report is the steep rise within the value of important hygiene items, which now totals over R1 033.09 — a rise of two.6%. In keeping with Roets, this added pressure is pushing many households into not possible conditions, the place they need to weigh the necessity for meals in opposition to probably the most primary well being requirements, typically sacrificing their sense of dignity within the course of.
Roets warned that South Africa’s affordability disaster is intensifying, pushed by:
- Meals value will increase that persistently outstrip inflation,
- Stubbornly excessive rates of interest, and
- Eskom’s ongoing electrical energy value hikes.
“South Africans are at breaking level,” Roets stated. “We’re seeing an increasing number of households fall into unmanageable debt — not as a result of they’ve failed, however as a result of the system is failing them. If this trajectory continues, we have now to ask ourselves, the place to from right here?”
South Africa’s meals costs rise sharply regardless of easing inflation
This previous week, knowledge launched by the Pietermaritzburg Financial Justice and Dignity (PMBEJD) in its April 2025 Family Affordability Index confirmed that the value of a primary meals basket elevated by virtually R100 month on month.
In April, customers needed to fork out R5 420.30 to replenish a primary meals basket. Which means the typical value of the Family Meals Basket elevated by R90,94 (1.7%), from R5 329.36 in March 2025 to R5 420.30 in April 2025.
The typical value of the Family Meals Basket elevated by R83.99 (1,6%), from R5 336,31 in April 2024 to R5 420.30 in April 2025.
In April, of the 44 meals tracked within the basket, 24 meals elevated in value, and 20 meals decreased in value.
Whereas client priced inflation softened, it was primarily attributed to decrease gas costs, whereas meals costs remained the identical or noticed a rise.
Meals within the basket which elevated in value in April 2025 by 5% or extra, embrace: potatoes (6%), onions (11%), beef (7%), fish (7%), tomatoes (26%), carrots (20%), spinach (7%), cabbage (6%), inexperienced pepper (7%), bananas (7%), and oranges (18%).
Meals within the basket which elevated in value in April 2025 by 2% or extra, embrace: maize meal (2%), full cream milk (2%), beef tripe (2%), cremora (3%), apricot jam (4%), and brown bread (2%).
Meals within the basket which decreased in value in April 2025, by 5% or extra, embrace: butternut (-7%), and apples (-6%).
Meals within the basket which decreased in value in April 2025, by 2% or extra, embrace: rice (-4%), cake flour (-2%), sugar beans (-3%), salt (-2%), frozen rooster parts (-3%), inventory cubes (-2%), soup (-3%), tea (-3%), margarine (-2%), and peanut butter (-2%).
Gloomy day for employees
Because the nation celebrated employees day this previous Thursday, the numbers confirmed that there was not a lot to rejoice.
The nationwide minimal wage in South Africa is R28.79 per hour, R230.32 for an 8-hour day, and R4 836.72 for a mean 21-day working month.
In April 2025, with 19 working-days, the utmost Nationwide Minimal Wage for a Basic Employee was R4 376.08.
“Employees work to assist their households. The wage employees earn is not only to maintain themselves alone, it’s used to assist your complete household. For Black South African employees, one wage usually should assist 4 folks. Dispersed in a employee’s household of 4 individuals, the NMW, is R1 094.02 per individual, that is beneath the upper-bound poverty line of R1 634 per individual monthly,” the PMBEJD said.
The April 2025 common value of a primary dietary meals basket for a household of 4 individuals is R3 817.78.
The group added, “On our calculations, utilizing Pietermaritzburg-based figures for electrical energy and transport, and the typical determine for a minimal dietary basket of meals for a household of 4, places electrical energy, and transport, taking over 58.6% of a employee’s wage (R2 562.97/R4 376.08).”
“Meals is purchased after monies for transport and electrical energy have been paid for or put aside (leaving R1 813.11 – for meals and all the pieces else), and so in April 2025, PMBEJD calculates that employees’ households will underspend on meals by a minimal of 52,5% (having R1 813.11 left over after transport and electrical energy have been paid, and with meals for the month costing R3 817,78). On this situation there isn’t any risk of a employee with the ability to afford sufficient nutritious meals for her household. If your complete R1 813.11 all went to purchase meals, then for a household of 4 individuals, it might present R453,28 per individual monthly. That is beneath the meals poverty line of R796,” the PMBEJD additional said.
Neil Roets, CEO of Debt Rescue stated that the figures mirror a brutal fact, that thousands and thousands of South Africans are not coping.
Roets stated, “To outlive, many are turning to bank cards and payday loans simply to purchase groceries. We’re seeing a pointy rise in customers utilizing short-term credit score to place meals on the desk.”
Hygiene objects are additionally more and more unaffordable.
The price of primary family hygiene merchandise has risen to R1 033.09, up 2.6% from final 12 months.
“When meals and hygiene compete for a similar shrinking funds, one thing has to present—and it’s typically well being and dignity,” Roets added.
“Individuals aren’t overspending or dwelling recklessly. They’re doing all the pieces proper, however the numbers not work. They’re trapped in a cycle of survival, borrowing simply to eat, and falling deeper into debt each month,” he stated.
“The April 2025 Family Affordability Index confirms what we see every single day: the price of survival is rising sooner than folks can sustain. South Africans are at breaking level proper now beneath the mixed onslaught of meals costs which have elevated far above the inflation fee, rates of interest which might be nonetheless among the many highest they’ve been in a decade and the relentless monetary onslaught from Eskom for a vital service that can be very important to the survival of households. The place to from right here?”, Roets requested.
Learn the article on BUSINESS REPORT
Printed inThe Mercury and The Star
