The war in Ukraine continues, lockdowns in Asia continue to send significant ripples throughout the global supply chain network. With predicted shortages in basic commodities such as cooking oil, flour, and fuel still to come, South Africans are already feeling the impact through rising prices.
Fuel price hikes are putting further strain on our post-pandemic recovery and government interventions such as the Sassa grant and general fuel levy reprieve are not enough to help millions stuck in abject poverty.
Economic conditions are only getting worse, highlighting a serious need to help communities find ways to cope. Only by taking drastic measures to help the most vulnerable can we hope to build self-sufficient communities that can find solutions to their challenges.
Tough times lie ahead, and not just for the poor. The effects are being felt by all, as food and fuel prices continue to soar. The cost of living is getting higher, household indebtedness is climbing, with no relief in sight as Ukraine’s exports of grain and oilseeds have mostly stopped and Russia’s are under threat. The two countries supply 12% of the world’s traded calories. Up 53% since the start of 2022, wheat prices jumped a further 6% in May, after India suspended exports due to a persistent heatwave. When there is a reduction in the supply of grain, rich countries can still afford to buy, but the poorer countries are forced to inflate prices, which has a devastating effect on all consumers.
As the world faces its worst food insecurity in recent history, particularly in the Middle East, North Africa, sub-Saharan Africa and South Asia, what can be done? Among other things, the Daily Maverick urges that the government, together with the Consumer Goods Council of SA (all major food retailers) and the Competition Commission should define the contents of a shopping basket of essential foodstuffs necessary to meet nutritional needs, under the guidance of expert nutritionists.
An immediate moratorium should be placed on price increases for these goods. Our government also needs to facilitate transactions between private enterprise and foreign governments to ensure we get the best possible prices for essential commodities. India is paying 20-30% less on oil, simply because it has negotiated deals directly with Russia. In SA, local governments need to actively assist people to grow food at home and on pavements and in communal food gardens. A plan is necessary to address food wastage, as nearly 30% of food produced in SA (almost 10.3m tonnes of food) never reaches people's stomachs.
To address unemployment, particularly in the youth, it is essential to start skills development programmes at ground level. Communities need to look seriously at upskilling themselves, both entrepreneurially, not only so they can find other opportunities to earn income but also to equip and to organise themselves to be able to survive the upcoming challenges. Stokvels for groceries will become increasingly important, and households will need to band together to utilise the power of bulk buy discounts, while either repackaging their purchases for their own use or on-selling.
Even permanently employed people will need a secondary income to survive, which means that people are going to need at least one side hustle to get by.
Instead of sitting at home, reliant on that single income, it will become necessary to train the breadwinner to engage eligible family members in entrepreneurial activities that bring in money or contribute to the survival of the household unit.
In addition to income-generating skills, it will be necessary to equip people with practical life skills. All communities, not just lower income communities, will benefit greatly from learning how to stretch their money as far as possible. From sourcing the lowest prices when shopping, to bulk buying and stockpiling, to bulk meal planning and preparation, there are many survival tactics that will need to be used to get by.
• Innes is group CEO at Dyna Training
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