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Ramaphosa calls on major retailers to help lower food prices

| Economic factors

President Cyril Ramaphosa has urged South Africa’s major supermarket chains to do more to make food affordable and avoid anti-competitive behaviour that drives up costs.

In his weekly letter to the nation, Ramaphosa said that rising food prices and food insecurity remain key challenges for the Government of National Unity (GNU). While overall inflation eased to 3.3% in August, food prices have continued to climb, particularly for meat and vegetables, putting added strain on households already struggling with unemployment and poverty.

The president acknowledged that retailers face their own cost pressures—such as high fuel prices, transport costs, and drought-related disruptions—but said this does not absolve them of responsibility. “The majority of South Africans depend on supermarket chains for their daily food supply,” he wrote. “Retailers have a vital role to play in ensuring access to affordable and nutritious food.”

Ramaphosa singled out the country’s biggest food retailers—Shoprite, Pick n Pay, SPAR, Woolworths, and Massmart—saying they must expand efforts to keep essentials affordable and offer healthy options such as fruits, vegetables, and proteins at lower prices.

He also condemned cartel-like practices that inflate costs, highlighting recent findings by the Competition Commission. The watchdog has uncovered price-fixing and collusion in several food markets, including bread, milling, and poultry. Earlier this year, an edible oils producer paid a R1 million settlement for price manipulation.

The commission’s reports have also revealed a “rocket and feather” pattern in pricing—where retailers raise prices quickly during supply shocks but delay cutting them when conditions improve. Essential items such as chicken, eggs, maize meal, and bread have shown this kind of “price stickiness,” the commission said.

While Ramaphosa placed the focus on the private sector, critics have noted that government policies have also contributed to rising food costs. The ANC-led GNU’s proposal to raise VAT to 17%—later reduced to 16% before being blocked in court—was widely opposed for its potential to worsen food inflation despite planned additions to the zero-rated basket.

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