Cobus Botma, owner of Mays Chemists in Melville, says customers are managing their medical aids to make their savings last longer as tough economic conditions bite.
“Others have downgraded their medical aids to hospital plans or medical insurance policies. The purchasing of general health supplements has changed too as people are often only buying the necessities.”
Andrew Fulton, Director at Eighty20 which unpacks credit behaviour, and the economy says, “Economic conditions leave both struggling and wealthy South Africans spiralling into debt.”
“As South Africans began 2023 experiencing a quarter of every day without electricity, coupled with rising interest rates and a weakening currency, it seems the significant pressure consumers were feeling at the end of last year has only escalated.”
“Loans newly in default (the proportion of current loan balances that went into default during the quarter) was up by 17.4% over the last year.”
Wynand Ackerman from Untamed in Westdene sells home automation and solar products. “It is crazy how spending is so tied to load-shedding rather than steady.” He describes the six weeks when load-shedding reduced recently causing a virtual complete stall in sales. “We were not even being asked for quotes, there was no interest at all.” As soon as load-shedding returned, business started booming again. “It’s volatile as people are making grudge purchases a lot of the time.”
Marina Makhanya lives in Sophiatown and only has her Sassa grant for income due to her disability and old age. “It is impossible to live on the grant, it is terrible at the moment.”
She describes having to go to the Hillbrow Community Health Centre for medication and says life is ‘impossible’. Increases and rate hikes see her taking funds from her food budget as there is nowhere else, she can. “I don’t like to complain though as so many have it worse than me, but It is an effort to remain positive.”
The Pietermaritzburg Economic Justice and Dignity group (PMBEJD) tracks and analyses data from 44 supermarkets and butcheries across the country. Their household affordability index tracks the cost of food, essential toiletries and looks at the impact of the economy on households.
The national minimum wage is R25.42 an hour. “The maximum wage of R4 270,56. When disbursed in a family of four persons is R1 067,64.”
“The minimum shortfall on food for a family is 43,8% in June 2023. After securing transport and electricity workers are left with R1 971,06. If all this money went to food, then for a family of
four, it would provide R492,76 per person per month. The Food Poverty Line is R663.”
Rob Janbroers owns Fairland Hardware and says his observations are that fewer people are buying new homes. “A change in spending at my shop shows a rise in alterations on existing properties to perhaps build a small cottage or additional room rather than a move to bigger premises.”
He also believes his business has seen an uptick because he does not sell the additional spending temptations like plants and other ‘luxury’ items that the larger outlets in the hardware market offer. “A customer is less likely to deviate from their budget with us.”
Louise Daneel has a florist and gift shop in Melville called the Auckland Park Florist that was opened 60 years ago. She has owned it for 15 and says business is terrible. “My store sells non-essential goods and fresh-cut flowers can’t keep, so if they don’t sell, I lose money.”
She describes having a lovely landlord who is understanding and supported her through the pandemic. “There are 17 empty shops on my street. The two next to me have been closed for two years.”
Soon a small wellness centre will be opened at the back of the beautiful store to diversify income which she hopes will bring some relief.
Aletha Greyson owns Cathy’s Q4U, a vehicle registration store in Fairland says her ability to offer stellar service to all clients is impacted terribly due to load-shedding and poor service delivery. “When the power is out or cables are stolen affects everyone, including small businesses that do not have the capital to mitigate shortcomings from the municipality.”
She says some see her service as a luxury where they pay a small amount for the convenience of getting their car registered without going to the traffic department, but more and more people are doing it out of necessity. “Customers can no longer afford to lose a day’s pay by queuing at the department for potentially an entire day and not get what they need because the department is without water or power and doesn’t work in the evenings – people leave with nothing.”
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