South Africans are continuing to feel the pressure of rising food costs, while reports of changing ownership at township spaza shops have raised concerns about the affordability of basic food items such as bread.
Speaking to VOC News, National Agricultural Marketing Council Agricultural Trade Economist Thabile Nkunjana said reports of higher bread prices are confined to certain communities and should not be interpreted as a nationwide trend.
“The issue around bread is not holistically across the country. It is specific to certain areas. South Africa has a proper wheat supply chain, so the problem is not that the country does not have enough wheat or supplies, but rather factors affecting those specific areas,” Nkunjana said.
Commenting on reports that more South Africans are taking over township spaza shops, Nkunjana said traders should consider adopting the bulk-buying model that has long been used by many foreign-owned businesses to keep prices competitive.
“When foreign shop owners came in, they applied a different model by buying stock in bulk for a number of spaza shops, which reduced their purchasing costs. If South African traders are moving back to the older model of buying individually, they need to look at how they can adapt because that has implications for prices,” he said.
He added that reduced competition could also contribute to price increases in some communities.
“If the number of shops in an area declines, consumers have fewer alternatives. Competition decreases, and sellers can potentially increase their prices. Combined with the absence of bulk buying, these are some of the realities we are going to have to face,” Nkunjana said.
Looking ahead, Nkunjana warned that consumers could face further pressure later this year as global conflict, rising fertiliser costs, transport expenses and the possibility of drought place additional strain on food production.
“The more significant effects of the current situation in the Middle East are likely to be felt towards the end of the year and into early 2027. When you combine expensive fertilisers, transport costs and possible drought conditions, these factors are likely to place further pressure on food prices,” he said.
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