South African workers are left with R1,653 after paying for electricity and transport costs
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South African workers are left with R1,653 after paying for electricity and transport costs

In many cases, workers in South Africa are left with only R1,653.35 for food and other necessities throughout the month after utility and travel bills have been paid.

According to the latest household affordability report from the Pietermaritzburg Economic Justice and Dignity Group (PMBEJD), electricity and transport expenses consumed R3,183.45 in August, which accounts for 65.8% of the worker's salary.

This data demonstrates the extremely limited budgetary cushion of households, even despite some decrease in prices for certain foodstuffs.

The average cost of a household's food basket in August was R5,479.80. Although this was 0.9% cheaper than in July, the amount remained 1.8% higher than in 2025. Out of 44 tracked PMBEJD products, prices increased on 19 items and decreased on 25.

However, the group's director, Marvin Abraham, emphasized that families do not receive income but rather allocate money according to fixed categories: the most essential expenses, such as rent or mortgage, electricity, and transport, are paid first. Food is purchased only from the remaining funds.

Abraham noted that this leads people to buy less and less nutritious food because food is bought after all other mandatory payments have been covered. He concluded that the accessibility crisis cannot be viewed solely through the lens of food prices, but must consider the overall competition for funds.

In August 2026, the Competition Commission's Cost of Living Report also warned that rising fuel and transport costs put additional pressure on family budgets. The Commission indicated that the first half of 2026 was characterized by a 'significant increase in fuel costs,' driven by geopolitical tensions and disruptions in global oil supply chains, exacerbated by exchange rate pressure.

Fuel and transport intensify pressure

The Commission reported that the rise in fuel and transport prices has affected not only daily commutes but has also increased production, logistics, and distribution costs across the economy, creating upward pressure on essential goods. Furthermore, the Commission warned that the increase in basic services such as water and electricity is putting extra strain on poorer households that may not receive low-income support.

For workers, the issue boils down to whether wages can keep pace with rising costs. Abigail Moyo, a representative of the United Association of South Africa (UASA), stated that households are already on the brink of collapse. She stressed that the increase in fuel prices will only exacerbate the financial pressure on ordinary South Africans whose budgets are already severely constrained.

Moyo countered that the solution cannot be to expect workers to absorb the increased costs themselves. She pointed out that the adjustment of fuel prices is the reason why UASA and its members in the sugar sector have gone on strike to fight for wage increases and benefits that match inflation. She called on the government to review fuel pricing mechanisms, including fuel and slate levies, and employers to recognize inflation-linked wage indexing as necessary for workers' survival amid the rising cost of living. She added that pensioners are feeling particular pressure.

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Odisha Engineer Swaps IT Career for Mushroom Farming Business and Earns Millions Monthly
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Odisha Engineer Swaps IT Career for Mushroom Farming Business and Earns Millions Monthly

After working in the information technology sector for 14 years, an engineer from Odisha decided to move away from software development and corporate roles to start a completely new business—mushroom farming. Through this enterprise, he now earns an income of millions of rupees monthly.

Vikramdev Mohapatra, who holds a bachelor's degree in electronics and communication engineering, returned home after many years in IT and founded Ganga Bhumi Mushrooms. With this business, he produces 500–600 kilograms of mushrooms daily, achieving a monthly income of 16–19 lakh rupees. This venture also provides employment to 24 local residents, including 18 women and six men.

Vikramdev obtained his bachelor's degree in 2012 from Bijay Patnaik University in Odisha. Following this, he worked for 14 years in the IT industry at companies such as Discovery Solutions, Mindtree, Cerol Technologies, and LTI Mindtree. In his career, he held positions like software engineer, module lead, technical lead, and senior package implementation specialist. His responsibilities included software development, product implementation, SAP solutions, team management, and client interaction. However, after spending over ten years in the corporate sector, he decided to return to Nabarangapur and engage in agriculture, leading to the creation of Ganga Bhumi Mushrooms.

This business demonstrates rapid growth. According to The Times of India, the enterprise produces about 500–600 kilograms of mushrooms daily, which is equivalent to 15–18 tons per month. The mushroom produce is supplied to the markets of Brahmapur and Bhubaneswar, allowing the business to operate year-round.

According to the report, the monthly production amounts to 15 to 18 tons of mushrooms, generating an income of 16 to 19 lakh rupees. At a selling price of 100–110 rupees per kilogram, the total project value is estimated at approximately 2.56 crore rupees. Furthermore, the government provides a subsidy of 97 lakh rupees, resulting in a monthly business profit of 10 lakh rupees.

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