Over the past year, South African consumers have received support through the work of the Consumer Goods and Services Ombud. More than 13,000 consumers were able to recover 12.9 million rand by filing complaints against products and services that did not meet advertised promises.
Results for 2025/26 showed a record number of applications—a 26% increase compared to the previous year. However, the CEO of CGSO, Quinn Munyayi, expressed concern over consumers whose legitimate claims remained unsatisfied due to a lack of response from suppliers attempting to resolve disputes.
CGSO functions as an impartial and independent alternative dispute resolution system, established in accordance with the provisions of the Consumer Protection Act (CPA). Its task is to mediate disagreements between consumers and suppliers of goods and services, ensuring that industry players comply with the Consumer Goods and Services Industry Code of Conduct.
Addressing stakeholders at the Westville University campus in KwaZulu-Natal, Munyayi cited a large number of non-compliant businesses, legislative gaps leaving online buyers unprotected, and a geographical imbalance in consumer awareness as obstacles to redress.
She emphasized that the annual report serves not only as a record of accepted and closed complaints but also as an opportunity to analyze how effectively alternative dispute resolution works, what its limitations are, and what can be done to raise consumer awareness so they can recognize and avoid fraud and unethical business practices.
Munyayi noted that a consumer who cannot find an organization, contact it, or understand its objectives remains effectively unprotected. Consequently, a significant area of activity has been educational outreach in various rural and underserved communities, where staff conducted personal meetings with approximately 20,000 citizens.
The CEO and Ombudsman, Liqwat Subrati, expressed concern over the high number of complaints that could not be processed due to insufficient cooperation from suppliers. Of the 9,759 consumer complaints suitable for consideration, 18% were closed for this specific reason.
Program Director and consumer journalist Wendy Nouler highlighted the importance of raising consumer awareness about their rights regarding electronic transactions, contracts, and subscriptions.
The average time to resolve cases was 52 days from receipt. Furthermore, over 40,000 inquiries were handled via email, phone, and WhatsApp. 1,609 complaints outside its jurisdiction were referred to other regulators and ombudsmen (1,918 in 2024/25). A network of satellite offices on campuses was implemented and expanded, and the 12th consecutive clean audit was achieved.
CGSO collaborates closely with the National Consumer Protection Commission and the Department of Trade, Industry and Competition to introduce legislative changes. The goal of these changes is to make it more difficult for suppliers to ignore the provisions of the CPA and the Industry Code of Conduct.
In an interview with The Mercury, Munyayi advised consumers to look for the CGSO membership badge on company websites and premises, which can serve as a sign of the firm's reliability. Regarding the growing e-commerce sector, she strongly urged consumers to be vigilant against fraud.
She stated that while e-commerce is a positive force, fraudsters actively exploit this sphere to improperly deceive consumers. Munyayi concluded that when consumers are informed, educated, and empowered, they are capable of recognizing an unscrupulous supplier. Consumers are encouraged to download the CGSO app to file complaints or call 0860 000 272. The full report is available on the website www.cgso.org.za.
Nearly twelve million residents of South Africa now account for almost half of the country's cash flow, highlighting the growing economic influence of the consumer segment, which has long remained in the shadow of discussions about financial accessibility.
According to a study conducted by a market research bureau on behalf of Metropolitan, the so-called 'fundamental market' of South Africa includes about 12.2 million adults—approximately 26.3% of the adult population. Collectively, these people generate R2.83 trillion in annual income as cash flow, accounting for 48.5% of the total volume in the country.
The study defines cash flow income as actual income receipts that individuals receive before taxes and other deductions. This fundamental market is not limited to low-income households; it covers both the lower and upper tiers of the developing middle class, as well as the established middle class, with a monthly income ranging from approximately R5,800 to R62,700.
This segment includes domestic workers, seasonal employees, contract workers (gig workers), entrepreneurs from townships, and grant recipients who supplement their earnings through informal activities. The findings refute the notion that this segment is peripheral to the financial system.
The Metropolitan study revealed that fundamental market consumers are highly banked clients, actively using smartphones, banking apps, WhatsApp, and social media. Furthermore, funeral insurance remains one of the most frequently used financial products in this group. Nevertheless, more than half of respondents reported difficulties covering monthly expenses, indicating persistent financial pressure on many households despite participation in the formal economy.
Almost 40% of this market is under 40 years old, with the majority being between 30 and 44 years old. Over 80% are employed, although a significant portion of this employment is concentrated in the informal economy, contract work, and gig economy, rather than in traditional permanent positions. The study also showed that this market is concentrated in the provinces of Gauteng and Western Cape.
The Metropolitan study also found that a quarter of South Africa's residents earning between R1,444 and R5,786 qualify as poor, while the majority—45%—fall into the category classified as 'precarious'. The combined segment of wealthy and rich constitutes only 0.6% of the workforce. However, this data contradicts the long-held belief that the wealthy constitute the main share of money. As a share of cash flow income, the wealthy provide 14%, and the affluent provide 11.5%, significantly less than the 48.5% of the fundamental market.
A separate study by the UN University World Institute for Economic Development showed that the top 10% of earners in South Africa still receive about half of all taxable income, demonstrating high wealth concentration even as the broader consumer market continues to stimulate daily economic activity.
Those changing work models are becoming increasingly important to financial service providers. The report argues that the issue of financial accessibility in South Africa goes beyond simply providing access to financial products. Instead, providers need products that reflect how consumers actually earn and manage their money, especially when more households combine formal employment with side jobs, informal trade, seasonal work, and family support.
The report highlights a structural mismatch between the products available in the market and the needs of many developing consumers. This indicates a significant opportunity for financial service providers to develop affordable income protection, pension, and health plans that better align with the realities of the country's growing middle class. For Metropolitan, these findings influenced the development of a new funeral insurance product designed for consumers whose income fluctuates month to month. The insurer noted that traditional funeral coverage suits households with stable and predictable earnings, but many South Africans now earn money in ways that do not fit conventional monthly premium models.
Luke Nel, Head of Protection Solutions at Metropolitan, stated: 'South Africans do not say they don't value protection. In fact, quite the opposite. They continue to prioritize the protection of their families, but different households have different financial realities.'
The South African government has spent 292 million rand on the process of repatriating foreign citizens as part of a five-stage plan presented by President Cyril Ramaphosa to combat illegal migration. Consequently, the Department of Home Affairs is now seeking reimbursement for these costs from Malawi, Nigeria, and Ethiopia.
The Director-General of the Department of Home Affairs, Tommy Makhode, informed the Portfolio Committee on Home Affairs on Tuesday that the department has sent requests to the governments of Malawi, as well as to the embassies of Nigeria and Ethiopia through the Department of International Relations and Cooperation (Dirco), demanding compensation for the expenses.
He specified that the department awaits responses from the respective governments. These expenditures occurred following a sharp escalation of migration problems in South Africa, which followed Ramaphosa's address to the nation on June 7, where he announced a comprehensive five-point approach to migration management.
The plan was approved by Cabinet on June 3 and aims to strengthen compliance with immigration legislation, ensure border security, reinforce the immigration system, eliminate gaps in migration laws and policies, and foster cooperation with other African states.
Ramaphosa stated that the government will intensify the identification and deportation of undocumented foreigners with the support of specialized immigration courts, while simultaneously increasing employer checks and strengthening border control.
The government's response to migration issues took place against a backdrop of growing anti-immigration protests, including demonstrations organized by March and March 30. These actions were accompanied by calls for the expulsion of undocumented migrants from the country, and clashes with police and violence occurred in some areas. Thousands of foreign nationals have already left areas where they feared for their safety.
Makhode informed the members of parliament that foreigners began gathering in various locations, including Sherwood Park in Durban, as pressure around migration intensified. He noted that by the end of June, the situation had become unbearable both in terms of numbers and in terms of the resulting humanitarian emergency.
He explained that these locations were not official state facilities but were managed by non-governmental organizations and the business community, while state officials checked documents to facilitate either deportation or repatriation.
Subsequently, the government established a Temporary Repatriation Centre in Musina, Limpopo, after the Interdepartmental Committee on Migration ordered the creation of such an institution to manage the growing number of people. Makhode reported that the centre was designed to accommodate up to 20,000 people, although its occupancy peaked at around 1,005 people and has since decreased.
By the end of the working day on August 6, the Department of Home Affairs processed 82,875 people within the processes of repatriation and deportation. Makhode emphasized that this figure includes both repatriates and individuals who underwent the deportation procedure. The highest number was processed during the peak period—4,850 people—after which the number significantly decreased.
He added that the data from Musina does not reflect all processed individuals, as some foreigners went through the procedure in other locations and proceeded directly to entry points.
Makhode characterized the repatriation operation as an 'unfunded mandate' for the Department of Home Affairs and other involved government departments. He explained that the Department of Home Affairs did not budget for this operation, and repatriation was not provided for in its legislative framework.
Of the total amount of 292 million rand, transport constituted the largest expense item. Furthermore, the Department of Public Works and Infrastructure spent 48 million rand on the establishment and operation of the temporary repatriation centre. The cities of Ekurhuleni and Cape Town also provided transport assistance, and the Department of Home Affairs reimbursed Ekurhuleni for the costs.
Makhode reported that the Department of Home Affairs was initially allocated 60 million rand, but the scale of the operation proved unforeseen. The department submitted a memorandum to Cabinet regarding unexpected and unavoidable expenses and also sought the reallocation of funds.
The current fiscal year budget for deportations in Lindela was 257 million rand, but Makhode predicted an overrun of this amount due to the increased volume of deportations. Therefore, the department appealed to the Minister of Finance for the reallocation of certain budget items.
Makhode clarified that in the previous fiscal year, 44,607 people were deported through Lindela, and in the current fiscal year, 16,078 people between April 20 and July 28. The largest groups consisted of citizens from Zimbabwe, Mozambique, and Malawi. In the last fiscal year, 13,479 Zimbabwean citizens and 12,354 Mozambican citizens were deported; in the current fiscal year, these figures were 4,095 and 4,034, respectively.
Lesotho registered 3,495 deportations in the previous fiscal year and 931 in the current one. The department also recorded deportations of citizens from countries such as Somalia, Bangladesh, Benin, Botswana, Cameroon, Rwanda, the United Kingdom, Vietnam, Algeria, Brazil, Thailand, and Liberia.
As part of the government's migration strategy, specialized immigration courts were also established to expedite case reviews. Makhode reported that 28,737 cases were concluded through these courts. Gauteng recorded the highest number of cases, followed by KwaZulu-Natal with 4,973 cases, Western Cape with 3,334 cases, and Eastern Cape with 2,019 cases.
In Ekurhuleni, the Chief Magistrate established seven specialized courts between July 1 and July 9. One court operated virtually, maintaining a link with Sherwood, while six operated from Central Durban. During this period, the courts concluded 2,173 cases.
The government is also working to expand the capacity of specialized courts at O.R. Tambo International Airport and Lindela so that immigration cases can be processed 'faster and more efficiently.'
The department also reported that in the previous fiscal year, 63,090 foreign nationals were declared undesirable, compared to 20,340 in the current fiscal year. Makhode explained that these declarations related to cases where foreigners exceeded the permitted stay in South Africa. He noted that exceeding the period by 30 days results in a one-year ban, and longer periods can lead to bans of two to five years.
The department is also engaged in deportations in accordance with Section 34 of the Immigration Act and undesirable declarations according to Section 30. Makhode assured that the government's approach remains based on the Constitution, human rights, and international obligations. He stressed that the government will not tolerate violence, intimidation, racism, xenophobia, or blocking foreigners' access to clinics, hospitals, schools, and other public services.
The government also stated that the migration strategy must take into account regional factors contributing to migration. Makhode informed the members of parliament that poverty, instability, and limited opportunities in countries of origin will continue to drive migration if these issues are not resolved. He noted that South Africa will use its chairmanship in SADC to raise these issues with regional countries.
In the first six months of the current year, exports of South Africa's major raw materials brought in over 261 billion rand for the country. The rise in prices for precious metals and coal helped support export revenues and the rand exchange rate, despite ongoing geopolitical tensions.
According to Investec chief economist Annabel Bishop, exports of gold, platinum, diamonds, jewelry, and other precious metals amounted to 213 billion rand in the first half of the year. An additional 48 billion rand was contributed by coal and related products.
According to World Bank data, South Africa's annual economy is estimated at approximately 8 trillion rand. Consequently, the 261 billion rand received from the export of just six main raw materials in the first half of the year is equivalent to more than 3% of the country's annual economic volume, highlighting the significance of the mining industry and raw material exports to the economy.
These figures are recorded against the backdrop of strengthening global commodity prices, even despite disruptions caused by the conflict in the Middle East.
Bishop noted that in July, overall commodity prices rose by 2.1%, bringing the annual increase to 14.1%. This growth was driven by an increase in metal and mineral prices by 21.3% year-on-year and a 6.9% rise in agricultural commodity prices.
Metals formed the basis of eight out of the ten largest raw material export positions in South Africa in the first half of the year, underscoring the importance of this sector for the country's currency and export earnings. Although some commodity prices fell after the start of the Middle East conflict, they remain significantly higher than a year ago. Platinum prices rose by 34.6% compared to the previous year, gold by 23.7%, and coal by 15.3% over the same period.
However, compared to pre-conflict levels, gold prices fell by 19.5%, platinum by 22%, iron ore by 5.5%, and manganese by 8.9%. Investec data shows that coal demonstrated resilience, increasing by 13.3% due to steady demand from Asia.
Agricultural commodity prices also rose sharply; Bishop attributes much of this increase to the rising cost of fertilizers and agricultural chemicals, linked to the increased price of oil raw materials following the conflict.
Bishop stated that higher commodity prices helped support the currencies of commodity-exporting countries, including the rand, even with a relatively stable US dollar exchange rate. She noted that oil prices were particularly volatile, briefly exceeding $101 per barrel at the end of July before falling to approximately $79.40 amid reports of progress in behind-the-scenes peace talks between the US and Iran.
Bishop also reported that South African motorists benefited from the drop in oil prices this month, as the price of gasoline fell by 52 cents per liter. Despite easing price pressures, risks in global supply chains have not disappeared.
Referring to the latest S&P Global raw materials price and supply PMI index, Bishop pointed out that overall commodity price pressure eased in July, although shortages remained significantly above long-term averages.
Oil recorded the highest registered supply shortage, while semiconductors, electrical components, stainless steel, and copper also experienced pressure. The report noted that a resumption of military action in the Middle East could once again test the resilience of global commodity markets and production supply chains.
Meanwhile, the latest S&P Global South African Purchasing Managers' Index showed a moderate improvement in private sector conditions in July. This improvement was supported by easing inflationary pressure and a return to production growth after two months of decline.
Bishop predicts that commodity prices and currencies are likely to strengthen slightly by the end of the year, provided the war in the Middle East does not escalate again and continue to disrupt commodity prices and global supplies.
