Agbiz warns of alarming rise in food insecurity despite agricultural export success


Agricultural Business Chamber of South Africa (Agbiz) is concerned about data from Stats SA indicating that food insecurity is increasing in South Africa.

Agricultural Business Chamber of South Africa (Agbiz) is concerned about data from Stats SA indicating that food insecurity is increasing in South Africa.

Published 19h ago

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The Agricultural Business Chamber of South Africa (Agbiz) has expressed growing concern over alarming statistics from Statistics SA that revealed an unsettling increase in food insecurity across the nation.

Data released in February showed that the percentage of food-insecure households rose significantly from 15.8% in 2019 to 19.7% in 2023, raising serious questions about the well-being of millions of South Africans.

According to Wandile Sihlobo, chief economist at Agbiz, an increasing number of households were struggling to secure basic food needs although South Africa stands as a formidable leader in agricultural exports within Africa.

“If you look at Agricultural Trade Data, South Africa is the only country from Africa in the top 40 global exporters. In 2024, South Africa's agricultural exporters reached a record $13.7 billion (R248bn). Some of the key agricultural exports include grain, fruits, red meat, and wool,” he said.

The new findings from Stats SA were derived from the General Household Survey that assessed food security levels for 2019, 2022, and 2023.

Notably, the report highlighted an alarming trend: the proportion of households experiencing moderate to severe food insecurity rose from 15.8% in 2019 to 16.2% in 2022, escalating further to 19.7% in 2023.

The severity of food insecurity is equally troubling; reports indicated that those experiencing severe food insecurity increased from 6.4% in 2019 to 8% in 2023.

Mervyn Abrahams, coordinator of the Pietermaritzburg Economic Justice and Dignity Group (PMBEJD), underscored the mounting strain on consumers, noting a sharp rise in the cost of living.

In January 2023, the price of a basic food basket surged to R5 433.70, reflecting a year-on-year increase of 2%.

“When considering the rules of demand and supply, which dictate that when a commodity is not easily available on the market, the price goes up; there are grounds for the argument that South Africa experienced food scarcity,” he said. 

Abrahams added that the issue of high food prices affected everyone, and the latest inflation figures mean that the consumer does not have enough money to feed their families.

“While the condition may sound desperate for middle-income earners, it is more dire for low-income earning households. The bad news is, judging by the pattern on food prices, the basket is likely to increase in future.”

Evashnee Naidu, regional manager for Black Sash in KwaZulu-Natal, noted with concern the increase in food insecurity experienced by South Africans sitting at 19.7% as recorded for 2023.

Naidu added that the fact that Minister Godongwana is also choosing to increase VAT in order to raise funds will have the most impact on poor and impoverished households, and beneficiaries living on social grants will feel the severe erosion of these grants.

“Black Sash can reasonably assume that these figures have continued to increase year-on-year into 2025, especially with the increase in food and fuel prices,” Naidu said.

“South Africans are forced to make tough decisions daily about what they can eat and some families, even if they will eat on this day.”

Aliya Chikte, project officer at the Alternative Information and Development Centre (AIDC), said the number of households facing moderate to severe hunger continued to rise, with little relief for the most impoverished.

“The Child Support Grant and Social Relief of Distress (SRD) grant remain below the food poverty line, making it impossible for recipients to meet their minimum daily energy needs without an additional source of income. In the past five years, the SRD grant has only increased once, failing to keep pace with the rising cost of living.”

The Institute for Economic Justice said that income poverty is a key driver of food insecurity in South Africa, yet the SRD grant has not kept pace with inflation, and the CSG is also well below the cost of feeding a child a basic nutritious diet.

“The proposed VAT increase will exacerbate the situation if enacted. Even with the proposals to increase zero-rating, zero-rating is a blunt instrument. Zero-rating cannot cover the full costs faced by poor households, and there is also no guarantee that producers pass on the lower cost to consumers.”

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