Neelam Rahim | neelam@radioislam.co.za
3-minute read
14 April 2025 | 18:58 CAT

A shopper looks at grocery items in Johannesburg, South Africa, June 17, 2020, Source – SABC. Image Credits : Reuters

As electricity costs surge and inflation bites deeper, South Africans are making heartbreaking choices between keeping the lights on and putting food on the table. A recent survey conducted by Debt Rescue South Africa paints a grim picture of household struggles in the face of relentless economic pressure.

Speaking to Radio Islam International, Debt Rescue Chief Legal Officer Anneline van der Poel said the survey was aimed at gauging how South Africans are coping with the escalating cost of living, particularly as the country heads into winter. “Almost 80% of participants are telling us that this is going to have a severe impact on their monthly budgets,” said Van der Poel.

Many consumers, she noted, have switched to prepaid electricity meters to have more control over their usage. However, “a lot of them already don’t have enough electricity to see through to the end of the month,” she added.

Perhaps the most alarming insight is that people are now skipping meals just to cope. “They’re foregoing maybe a lunch or a breakfast just to try and keep up with the rising cost of living,” Van der Poel explained. Households are also resorting to alternative energy sources like gas, but many cannot afford the initial cost of appliances.

The looming VAT hike adds to their woes. Van der Poel pointed out, “If it goes up by one percent, that’s increasing by 6.66 percent.” The limited zero-VAT basket does little to cushion the blow, particularly for poorer households. “The necessities are going to cost them even more than what it’s costing now,” she warned.

Despite the grim outlook, Van der Poel urged consumers to take back some control. “We literally have never had to plan every cent ever in our lives as we have to right now,” she said, advising strict budgeting, smart shopping, and seeking debt counselling where needed.

While the economic challenges remain daunting, Debt Rescue hopes their insights will prompt action and empower consumers to navigate these trying times with resilience and informed decisions.

Listen to the full interview on The Daily Round-Up with Moulana Junaid Kharsany and Anneline van der Poel here.