Enoch Godongwana makes his maiden budget speech last year. The real worry is what’s lurking in this year’s budget. Picture: Phando Jikelo/African News Agency (ANA)
The first month of the year has been christened “Janu-worry” for the empty-wallet syndrome resulting from excess in the preceding festive period.
Unfortunately, indications are that rather than just one month of struggle, this will be a year of worry for most South Africans.
Load shedding, predicted to last two more years, combines with high fuel prices to result in the prices of basic food items skyrocketing.
Maize meal, a poor-household staple, already costs 17% more than a year ago, flour 28%, samp 24% and oil 30%.
Potatoes cost 30% more, onions 75% more, chicken pieces 70%, and bread 18%.
Electricity will cost 18% more come April, and fuel and paraffin go up next week.
Interest rates went up by a small amount this week, but it is the cumulative effect of all these increases that is the problem; even middle-income homes will be hard-pressed to make ends meet.
Buying in bulk used to be a bulwark against price hikes, but load shedding has literally sunk that option for many items, as anyone who's filled bin bags with rotten food from fridges and freezers will testify.
All of this comes ahead of the eagerly awaited ‒ some might say dreaded ‒ Budget speech to be delivered by Finance Minister Enoch Godongwana next month.
One hopes that some hard thinking and soul-searching goes into the preparation of that budget, with care given to the welfare of the most vulnerable in the country.
We can expect more pain in the usual hikes to the fuel levies, which, fortunately, will not come into effect until April ‒ the same month, unfortunately, Eskom implements its tariff hike.
Mervyn Abrahams, programme co-ordinator of the Pietermaritzburg Economic, Justice and Dignity organisation, said it had asked for a dedicated unit in the Office of the President to monitor uncoordinated hikes and their cumulative effect on consumers.
A good call for a president who appears to be totally unaware of the situation on the ground.
The Independent on Saturday