The cost of living is still under pressure as rising inflation patterns continue.
On 26 February 2025, Statistics South Africa (SA) released the Consumer Price Index (CPI) for January, which has been raised to 3.2%, up from 3.0% in December 2024.
The CPI measures the average change of prices of goods and services typically bought by South Africans. It is a key indicator of inflation as it shows how the cost of living is rising or falling.
The contributors to the annual inflation rate include housing and utilities, food and non-alcoholic beverages, and restaurants and accommodation services.
The increase in prices affects people at all levels, including cash-strapped students. Luthando Nzama, a second year Fine Arts Student at the Wits School of Arts (WSOA), said students can’t keep up. “Whenever we go to Checkers or shopping centre’s the prices are really high and that affects the amount of groceries we (can buy),” she said.
Sizwe Gumede, a second year Civil Engineering student at Wits University has also experienced the brunt of inflation. “Based on my experience, we aren’t able to afford some of the services and goods that we need,” he said.
Gumede said many students struggle to buy themselves essentials such as toiletries and thinks increased allowances may help.
“I heard that NSFAS will be going up, but for the past couple of years it’s been at the same rate while inflation is increasing. This left us students vulnerable to not (being able to) survive off this kind of funding,” he added. Last week, NSFAS confirmed that allowances for university students would increase by 4% and 46% for those studying at TVET colleges.
Various sources have researched the monthly average students need to get by, it ranges between R1500 to R3000 for groceries alone and between R500 and R1000 for other personal items.
As inflation increases, young people on the ground continue to be affected by the rising cost of living and are attempting to make ends meet.
FEATURED IMAGE: South African cash notes. Photo: File.
Finance Minister, Enoch Godongwana agrees to a court order to suspend his decision to increase VAT and this means economic relief to many
VAT increase suspension leave students with a sense of relief
Increased VAT rate was met with resistance from various political parties
Reversal comes with a R75 billion shortfall for the government revenue
Wits University students expressed relief as Finance Minister, Enoch Godongwana, announced reversal of the 0.5% VAT increase on April 23, 2025 after the DA challenged the legality of the parliamentary process that passed the increase.
The initial proposal to increase the VAT rate by 0.5 percentage points was met with resistance from various political parties, including the Democratic Alliance (DA) and the Economic Freedom Fighters (EFF).
For many South Africans, the suspension has provided much-needed relief, including Wits students. As consumers, particularly from lower-income households, funded by bursaries, the VAT increase would have been a big blow.
Shaunice van Wyk, 3rd year student said: “The VAT increase would have forced me to stop buying the basic products that I am used to buying, so the suspension comes with a relief”.
Another third-year student, Patience Msiza, echoed similar sentiments, “As a student I am already struggling to make ends meet, so the increase of VAT rate was going to make things even worse.”
Although the suspension comes with relief, it will result in a R75 billion shortfall in government revenue, prompting the National Treasury to revisit its budget.
Professor Imraan Valodia, an economist at University of Witwatersrand, who previously written in support of the VAT increase, expressed concerns about the long-term implications.
“We’ll have to see what comes in the revised budget, but I think government will have to cut expenditure, which means we’ve missed the opportunity to address the social and economic infrastructure backlogs, which are important for shifting the economy onto a growth trajectory to address unemployment and growing levels of poverty.”
FEATURED IMAGE: Black wallet Photo: Abena Mahlahlane
Wits students brace for the impact of a VAT increase, as stagnant NSFAS allowances fail to keep with inflation and rising daily expenses.
A 0.5 percentage point VAT increase takes effect on May 1, 2025, raising concerns over affordability of essentials for Wits students.
NSFAS-funded students say their allowances don’t keep up with inflation, forcing spending cuts on food, toiletries, and daily essentials.
Wits University says it cannot exceed funder limits or risk its financial sustainability.
With the cost of living sky-high, Wits University students funded by the National Student Financial Aid Scheme (NSFAS) are preparing for another financial hit, a 0.5 percentage point increase in Value-Added Tax (VAT) set to take effect on May 1, 2025.
Finance minister, Enoch Godongwana, said the increase was necessary to increase public revenue.
Dr Jerome Lange, an economics lecturer at Wits University, said the impact is tangible for low-income students. “They might opt to not spend that extra unit to buy bread or electricity if it’s more expensive.”
He raised concerns about the fairness of the tax. “It’s not a measure that works toward equality. Structures like NSFAS safeguard students against poverty, but 0.5 percentage points can still make a difference. Wits is already financially squeezed and limited in the kind of relief it can offer students,” he said.
Government intends to expand VAT zero-rated food items but the risk for students remains high.
A basket of zero-rated food items, including brown bread, eggs, cooking oil, milk, potatoes, onions, and rice, essentials for food security among students. These items are exempt from VAT, according to the South African Revenue Service’s 2022 VAT guide. Photo: LikhoMbuka
Owame Mfeka, a second-year student said, “The potential for inflation remains. NSFAS allowances are not adjusted for inflation, meaning our purchasing power keeps declining.” He said, “to meaningfully support students, allowances should rise at inflation rate.”
Sibahle Majingo, a second-year student, said he’s already making tough decisions about spending. “Even though the NSFAS allowance increased slightly this year, it’s still not enough. I have to prioritise food and toiletries, look for discounts, and reduce all non-essentials, takeaways or entertainment.”
Majingo, who also sends money home, said he may need to take on part-time work to cope. “It’s frustrating because the cost of living rises faster than our support. Wits could help by reducing residence prices and ensuring timely allowance payments,” he said.
But Wits spokesperson, Shirona Patel, said the university cannot exceed limits of funder allocations or risk financial sustainability, saying rising costs affect staff, students, and suppliers.
As VAT increases and the economic pinch tightens, many students fear the strain on their finances will not only affect their pockets but their ability to focus on their academic goals.
With limited institutional flexibility and slow-moving adjustments from NSFAS, the question remains: Who will cushion the students from the ripple effects of this tax increase?
FEATURE IMAGE: A R10 note and coins, the reality for many students surviving on limited monthly allowances. Even a 0.5 percentage point VAT increase can significantly affect purchasing power. Photo: Likho Mbuka
To meet persistent service delivery needs, the government has proposed a VAT increase of 1% over two years, raising the rate to 16% by 2026/27.
Finance Minister Enoch Gondongwana finally delivered the 2025 Budget speech on March 12, after a shock cancellation in February. The approval process will follow, with Parliament set to review, debate, and vote on the proposal.
While much of the public debate has focused on the proposed VAT increase, Gondongwana said “the central issue is fostering economic growth for the majority. Over the past decade, South Africa’s economy has stagnated, with GDP growth averaging under two percent”.
To achieve the country’s goals of redistribution and structural transformation, a faster, more inclusive economy is essential.
The 2025 budget outlines a strategy centered on “macroeconomic stability, structural reforms, infrastructure investment, and improving state capability to unlock the country’s productive capacity,” said Gondongwana.
With fiscal stability in focus, the budget also targets reducing debt-service costs and addressing critical issues like Eskom’s debt. Stabilising the economy, enhancing job creation, and advancing social services, are all at the top of the list.
Infrastructure remains a key focus in the 2025 Budget, with over R1 trillion allocated to capital spending over the next three years. Key areas of investment include R402 billion for transport, R219.2 billion for energy, and R156.3 billion for water and sanitation.
Projects such as upgrading roads, rebuilding the Passenger Rail Agency of South Africa’s infrastructure, and expanding water systems are central to driving economic growth, creating jobs, and improving public services. Public-private partnerships and innovative financing, including an infrastructure bond and credit guarantee vehicle, will further support these efforts.
Godongwana said the VAT increase could help meet persistent service delivery needs. It is expected to generate R28 billion in 2025/26 and R14.5 billion in 2026/27. After weighing alternatives like increasing corporate or personal income taxes, the VAT increase was deemed the most viable option to avoid further spending cuts and ensure essential services continue.
In social security, R284.7 billion is allocated to grants, with increases for the elderly, disabled, and child support. The COVID-19 Social Relief of Distress (SRD) grant will continue until March 2026, with 28 million beneficiaries set to benefit.
The South African Revenue Service (SARS) receives R3.5 billion this year and an additional R4 billion for improved tax collection. Efforts to broaden the tax base and improve compliance will help fund essential government services.
For early childhood development and education, the government allocates R10 billion to increase subsidies and expand access to early education for 700,000 more children. This investment supports the foundation for a better future workforce.
In addition to these measures, funding is set aside for critical health and security services, including a R28.9 billion boost to healthcare to retain workers and ensure adequate staffing in hospitals.
But none of these measures can be implemented without a majority vote in favour, so all eyes will be on parliamentarians for what happens next.
FEATURED IMAGE: The cost of living: South African Rands may not stretch as far if proposed VAT increase takes effect. Photo: Adobe Stock
Fourteen days without electricity turned my academic ambitions into a harrowing experience.
On the night of May 1, 2024, Braamfontein turned pitch black, as a power outage plunged some parts of the inner city into darkness.
I was in the newsroom, situated at the E’skia Mphahlele building on Wits East Campus, writing a review of a theatre play I had watched. Living in a country where loadshedding and power interruptions have become the norm, I did not take the outage to mind, thinking the electricity would be restored in a couple of hours.
The next morning, Johannesburg City Power revealed that underground cables in the Braamfontein area had caught fire, due to suspected cable theft and vandalism. Knowing the city is overseeing the situation, I further relaxed, thinking the matter would be fixed swiftly, but that did not happen.
Since productivity was limited in my residence room, my daily routine changed dramatically — the library in Solomon Mahlangu House became my accommodation, where I rose early to charge my devices, eat, and do some coursework.
As a journalism student, I typically have one or two classes daily, allowing ample time for writing articles, research, and programme engagement. I spend most days on campus, occasionally returning to my residence to rest or prepare meals between classes.
By 10 o’clock in the evenings, I normally return to my room which is a walking distance from campus. I typically buy groceries and cook to save money.
As food prices have gone up due to inflation. I have resorted to only having one or two meals a day. I sometimes grab lunch provided by the Wits Citizen and Community Outreach (WCCO) programme but in most cases, this clashes with my classes, forcing me to improvise.
But on Saturday May 5, 2024, after a basketball game, I returned to find all my recently bought food spoiled in the fridge, just after I had stocked up for the whole month, a financial setback of note.
Due to only having borehole water at my residence as well as a scarcity of water when there are power outages, I then resorted to commuting to Wits Junction daily so that I could shower at my friend’s place before heading to class.
I felt hopeless and exhausted, unable to change my situation — fueling resentment for this place called Braamfontein. Without financial assistance or a food allowance, I had to dig deeper into my own pockets. I observed Darwinism firsthand as “survival of the fittest” unfolded in its ruthless and pragmatic manner.
This situation was a defining moment for me, the emotions I felt, made me look at things differently. Mainly, that challenges will come, but my resilience can see me through.
Finally, on May 13, 2024, the lights in Braamfontein flickered back to life after a long two weeks. Immediately when the lights came on, the joyous screams of students filled the air, and as if on cue, rain showers descend, bringing a sense of renewal amidst the chaos.
FEATURED IMAGE: Salim Nkosi Photo: File/Leon Sadiki
How do bookshops on Wits campus compare as they aim to fulfil student’s academic needs whilst keeping prices affordable?
Buying textbooks can be a stressful exercise for most students; as most of these books do not come cheap. But what is the role of bookstores when it comes to the final price tag? Wits Vuvuzela investigated by speaking to two main bookshops on campus to find out how they set up their prices.
I.H. Pentz Campus Bookshop, situated just outside of the Matrix, was founded in 1992 on Wits campus and operates as a sole proprietor. Van Schaik Bookstore meanwhile can be found at the heart of the Matrix. The original Van Schaik Bookstore was founded in 1914 in Pretoria, and currently operates as a private company.
Van Schaik has been owned by “a syndicate of private equity investors and a pension fund” since 2013. This Wits branch is one of 70 retail stores owned by Van Schaik across Southern Africa. I.H. Pentz, on the other hand, receives no outside funding and is therefore dependent on the business it generates on Wits campus.
When asked how they set up their prices, I.H. Pentz spokesperson said they look at public retail prices to determine their own. He said the business aims to supply students with a “specialised” service and attempt to “cater for everything”, from prescribed books to more obscure research and leisure reading titles.
I.H. Pentz carries 15 000 individual titles as part of its “curated collection”, and even holds books that they are aware “don’t justify shelf space” to provide students with as much variety as possible. They also deal with new, as well as second-hand books as a budget-friendly alternative.
On the other hand, manager of the Van Schaik Wits branch, Mmabosigo Makolomakwa said that they only deal with “brand new books”. The titles and the price they carry are determined by the Van Schaik head office and attempt to streamline student’s acquisition of prescribed books.
In 2019, the National Student Financial Aid Scheme (NSFAS) abandoned their awarding of book vouchers as it found that students would trade these vouchers for cash. They dealt with the issue by giving students with a book allowance. Currently the allocation stands at R5 460 per annum. However, since NSFAS started giving students cash directly, I.H. Pentz said their “textbook sales have gone down”.
Figure 1: A comparative graph displaying how the NSFAS learning materials allowance has increased, versus the South African inflation rate as determined by the International Monetary Fund (IMF) from 2019 to 2024.
Meanwhile, Makolomakwa believes that the allowance is too low and makes students “opt for second-hand” books over more “expensive” new titles. Makolomakwa added that if you are an accounting student, there is a chance “you’re not going to get all your books”.
Depending on the type of subjects an accounting student decides to study, if they opt for brand new books, they could roughly be putting themselves in an R8 000 hole. This trumps the R5 460 learning materials allowance provided by NSFAS – and necessitates the purchasing of second-hand titles.
In some cases, however, buying second-hand titles may not be an option if new versions of textbooks are released every year. For example, if a student is doing tax accounting, they require South African Institute of Chartered Accountants (SAICA) Student Handbook packs that release new versions of textbooks every year.
Figure 2: A tabulated representation of the prices of the annually released SAICA Student Handbook: Volume 2 on online retailers Loot.co.za and Lexisnexis.co.za.
I.H. Pentz, on the other hand, believes that the allowance is “fair” because of the second-hand option they provide. For example, a brand-new copy of Biology: A Global Approach, Global Edition sells for R1 440 at I.H. Pentz, whilst you can buy it for R400 second-hand. The shop also regularly runs sales on second-hand books that can be bought for anywhere between R40 and R100.
Second-hand books on sale outside of I.H. Pentz for discounted prices. Photo: Tristan Monzeglio
Although Van Schaik Wits branch’s prices are dictated by their head office, Makolomakwa says she always listens to feedback from students and compares prices of online retailers like Takealot to make price their prices competitive.
Online retailers like Loot and Takealot appear to have cheaper textbook options than I.H. Pentz and Van Schaik for more widely accessible textbooks, but these initial prices do not account for delivery fees – and more obscure textbooks can be almost double the price.
Figure 3: Groupings of bar charts that comparing the prices of specific textbooks from different retailers: I.H. Pentz Campus Bookshop, Van Schaik Bookstore, Takealot.com and Loot.co.za.
The prices of textbooks vary heavily across retailers; and there is no clear winner when it comes to the affordability of new textbooks. However, because I.H. Pentz sells second-hand books, they have the upper hand on Van Schaik when it comes to providing students with cheaper options.
FEATURED IMAGE: I.H. Pentz Campus Bookshop and Van Schaik Bookstore on Wits Campus. Photo: Tristan Monzeglio
Despite South Africa’s constitution enshrining that every citizen possesses the right to access social security – a large demographic has been excluded from the social grant system.
While it may appear inconceivable to subsist on a grant of a mere R350 per month, this harsh reality befalls millions of South Africans, who find themselves teetering precariously below the food poverty line, trapped in a crippling dependency on social grants.
Wits Vuvuzela delved into the lives of five South Africans, confronting the stark reality of surviving on that R350 per month. When questioned about how their families manage on such an allowance, a resounding “We don’t!’ echoed around the room. Donavan Du Pelsen (53) lamented, “R11 a day! It works out to R11 a day!” Another recipient chimed in, “A loaf of bread is R12!”
Social security is firmly embedded in the Constitution of the Republic of South Africa.
Section 27(1)(c) of Act 108 of 1996 stipulates that every South African has the right to access social security, which includes appropriate social assistance for those unable to support themselves and their dependents.
Yet, in a country with a 32.6% unemployment rate, millions of citizens have been excluded from receiving this core socioeconomic right, resulting in 18.3 million South Africans between the ages of 18-59 living below the food poverty line.
The quarterly labour force statistics published by Statistics South Africa for Q2: 2023. Infographic: Terri-Ann Brouwers
Prior to 2020, when the Social Relief of Distress Grant was implemented in response to the covid-19 pandemic, unemployed and able-bodied South Africans between the ages of 18-59 were completely excluded from the social grant system.
The grants which exist in South Africa include the older person’s grant, child support grant, grant in aid, care dependency grant, foster child grant, disability grant and war veterans grant.
According to a study conducted by UNICEF one of the common misconceptions held by policymakers, the media, and stakeholders in general, is that providing social assistance to citizens between the ages of 18-59 will lead to long-term dependency. Those who hold this view think such social assistance will disincentivise active job seekers and promote laziness.
This kind of thinking imagines that social grants should exclusively be allocated to the ‘deserving poor’ while unemployed people of working age are simply not trying hard enough to fight their circumstances.
Social Relief of Distress Grant (SRD)
Implemented to help the economically vulnerable South Africans during the pandemic, the SRD grant provided a monthly stipend of R350 afforded to recipients. In the 2023 budget speech finance minister, Enoch Godongwana stated that the grant would be extended until 31 March 2024. Although it was a much welcomed extension, the implementation has less than smooth.
On 27 July 2023, the Pay The Grants campaign and the Institute for Economic Justice (IEJ) sued the government over the unfair exclusion of millions of people from the SRD grant. They also included concerns about “the real terms reduction of the value of the grant.” They stated that while all social grants have increased over time, the SRD grant has remained the same since its implementation in 2020. “Given headline inflation over 6%, the value of the grant has decreased to R294 in real terms. Inflation in the price of food is even higher than headline inflation, having reached over 11%,” read the court documents.
“We would rather have jobs than the R350!”
– Euradiece raiters
Commenting on the exclusion of social grants for people between the ages of 18-59, Pay The Grants chairperson, Elizabeth Raiters, who is also a recipient of the SRD Grant said: “We are not lazy to work. If you [are] over 35 it’s a big struggle to find a job because of your age. So, what happens to us after 35? There’s no grant to support us, we [are] not lazy to work, we are looking for jobs.” Raiters sister, Euradiece Raiters, who is also a recipient of the SRD grant echoed the sentiment, “We would rather have jobs than the R350!”
“There is totally no grant that covers those people, until you get old age (older person’s grant), so for all those years how must you survive?” said Raiters.
Charmaine Martin, another grant recipient and mother, was forced to quit her job when her husband developed a chronic disease which left him dependent on two oxygen tanks and unable to stay home alone. “I have a chronic patient, a daughter that’s 14, no income, we’re waiting for a grant that may never arrive, so in your mind how do you think we’re surviving now at this moment?”
She continued: “Tomorrow, he needs to go to hospital, I don’t have money for him to go to hospital for his appointment.” Martin is receiving a grant of R500 for her daughter, “She’s 14, how much is toiletries? R500 is for toiletries. So where does she eat? Where is she getting clothing from?”
Feeling despondent and out of options Martin said: “I’m at a point now where I want to send my husband to a place where they can help him with his illness, his lungs and everything, and me and my child can go to the shelter and live there… At least at the shelter, we will be able to eat breakfast, lunch and supper.”
Martin is constantly managing her hunger, “I don’t eat [for] like four to five days. I’ll rather buy a grandpa and that will fill me and boost me for the day ahead,” she said.
Valentia Mahlaela (22), an honours in physiology student at Wits University, was a recipient of the SRD grant in 2020 and said she was only able to use the R350 for toiletries. “I used it as my allowance, especially toiletries,” she continues, adding that “I was never granted NSFAS so it helped my folks [parents] a lot.”
Universal Basic Income Grant
Pay The Grants has been campaigning for the government to implement a Universal Basic Income Grant (UBIG) of a minimum of R1500. According to Pietermaritzburg Economic Justice& Dignity Group household affordability index, the average cost of a household food basket is R5124,31.
Commenting on the need for the UBIG to be implemented Pay The Grants said, “Debts are skyrocketing and so is child malnutrition. Rising unemployment is a structural feature of the system, currently 35% overall and 70% for youth without any signs of improvement.”
The organization says that UBIG is a way to restore the basic dignity and survival of most of the country.
An infographic outlining the premise of a universal basic income grant. Infographic: Terri-Ann Brouwers
Although deeply embedded in our constitution, it is clear that a significant portion of South Africans have been left behind when it comes to accessing social grants. One would think that the mother in the Eastern Cape who killed herself and her three daughters due to the extreme poverty they endured, would be a cautionary tale to the government to not only increase the grant amount but also make it more accessible to people of working age. However, this has not been the case. The question stands – how many more tragedies must occur before all South Africans’ constitutional rights are met?
FEATURED IMAGE: South Africa is confronted with a striking dependence on social grants, yet millions have been left out of the social security system. Photo: Terri-Ann Brouwers
There comes a time when all birds must fly the nest and leave the comfort of their parents’ home, but for Generation Z, the time is nigh, and it seems there may be nowhere else to land.
“Out of reach.” “Impossible.” “Unaffordable.” These are the words used by members of Generation Z (Gen-Z) on the possibility of buying their own house in their twenties, according to an experimental Instagram poll of 38 respondents run by Wits Vuvuzela.
However, a 2022 Rocket Mortgage survey revealed that 72% of their Gen-Z sample (2000 people of ages 18-26) are highly motivated to buy a home in the near future but, as interest rates reach their highest peak in 15 years this month, buying a house in South Africa is more expensive than ever.
The South African Reserve Bank responded to a world-wide increase in inflation rates, which neared the 8% mark in South Africa at the end of 2022. Raising the bank repo rate to 8.25% meant that the prime lending rate rose to 11.75%, the highest it has been since the aftermath of the 2008 financial crisis. A higher lending rate means that taking out large loans from a bank, such as a bond on a house, becomes more expensive. For younger generations hoping to live on their own, this has added another obstacle to an already almost impossible dream.
“Unfortunately, it is very difficult for young people to purchase property in this country. The current interest rates are higher than they have been in years, economic times are hard – many young people don’t have good credit scores which negatively affects their lending profile and many young people are not aware of the upfront costs that are required when purchasing a property [bond and transfer costs],” says Rob Pound, a real estate agent working in Johannesburg.
The latest FNB property barometer reveals that first-time-buyer numbers are on the decline and the average age at which South Africans can afford their own home is 35. The report cited the rising cost of living, inflation rate and unemployment rate as causes for so few people in their twenties affording homes of their own.
This is supported by real estate agent Ronald Oliphant, a Braamfontein area specialist who said that he has seen fewer young people looking to buy or rent properties this year. Braamfontein, Ferndale and Fontainebleau remain popular areas for young first-time buyers in Johannesburg, but the latest Lightstone report indicates that only 18% of stable homeowners in Ferndale are under the age of 35. This number decreases to 16% in Braamfontein and 5% in Fontainebleau.
For those young people who overcome financial burdens and manage to buy their own homes, the struggle does not end there. “I once had a client who was 27 years old and he found one of my properties, which was R850,000. He said he could afford it because the bond repayments would be the same cost as the rent he was paying at the time, and he was so excited to be purchasing a property rather than ‘paying someone else’s bond,’” said Pound. “He wasn’t aware of the upfront transfer and bond costs that are required when buying property, which in his case were around R56,000. He had to come up with this money in two months in order to buy the house, but he was living hand-to-mouth, there was no way he could afford it.”
South African banks, aware of this difficult situation, are open to giving first-time home buyers a bond of 105% in order to cover the upfront costs for properties under the value of R1.8 million. However, for this young buyer only one South African bank offered to grant him this deal.
Jesse Van Der Merwe (24), a recent Wits engineering graduate also decided to invest in her own property when she started her working life, however, after buying her own apartment, realized that she could not afford to keep up with the day to day costs of owning a property and living alone. “I realized that I can’t really afford to live [in the apartment] and like…eat, so I’m renting it out while I stay at home until I can actually afford to move into it.”
With unaffordable upfront costs and bond repayment rates, many young people who can afford it are pushed into renting property instead. This has led to a high demand for rental properties which, according to the FNB report, has made rental costs in Johannesburg more expensive in recent years. “Real-estate is simply supply and demand,” said Pound.
According to Oliphant, a tenant may only be considered for a property if the rent does not exceed one third of their income, but, as rental rates increase due to high demand, many young people apply for rentals that they do not comfortably afford.
Julia Rolle (24), a 2D character animator from Johannesburg who works remotely, made the decision to move away from the city to the seaside town of Wilderness on the garden route. To afford the rent on what she refers to as a “teeny tiny place”, Rolle pays 35% of her income on rent. When asked if she has had to sacrifice paying for other things for her accommodation, she answered, “Of course, but I wouldn’t trade the independence and having my own space.”
Interest rates have remained steady the last two months as inflation begins to slow, giving hope to young home hunters that the situation might yet improve. However, in a press conference held on July 20 in Pretoria, Governor Lesetja Kganyago said that the interest rates have not yet peaked, “Is this the end of the hiking cycle? No it is not. It depends on the data and the risks. That’s what it boils down to.”
In such an economic climate, some young people such as Jennifer Greef (25) have no choice but to stay in their family home for longer than they planned, “I do think I could move out, but my living conditions at home are just so much better than what they would be if I moved out because I would have to move somewhere really small,” she said. “I think still living with my parents is the right way to go about things right now because then I can save and spend my money on other things such as insurance and medical aid rather than rent.”
FEATURED IMAGE: Feature Image: A real estate agent hands over keys to a young gen-z as they buy their first home. Photo: Kimberley Kersten
The Accounting Student Council partnered with Absa to teach students on campus about investments and savings
Over 250 students from various fields of study overcrowded room five at the FNB venue at Wits on Thursday, August 17 in the pursuit of learning how to manage their money.
According to the World Bank , financial literacy is becoming increasingly important due to high levels of poverty, inequality, and unemployment. But the lack of data about people who are financially illiterate, makes it difficult to measure how bad the problem is.
However, in 2021, the Organization for Economic Co-operation and Development (OECD) conducted a survey noting that only 42% of adults in South Africa are financially literate. This means that over half of the adult population does not understand basic financial concepts such as interest rates, inflation, and savings.
The event focused on compound growth with Keith Davids, investment specialist at Absa. He encouraged students to start saving and investing as soon as they start working.
Absa representative Nells Mokgahla, said his passion for financial education and freedom inspired him to help organize the event.
“The financial literacy gap keeps widening because of the assumption that upcoming graduates know how to handle their finances but as a responsible bank we wanted to close the gap,” said Mokgahla.
Wits students listening to a financial literacy seminar at Wits Universvity, West Campus. Photo: Sfundo Parkozov
The initial plan was to have 150 final year accounting students; however, the event garnered students from different years of study and faculties, overloading the underestimated venue —some students had to sit on the floor.
The hosts tried to make the session as interactive and engaging as possible by asking the audience questions and giving them gift bags for each correct answer.
Davids told Wits Vuvuzela that the turnout amazed him and served as a testament that more students were eager to be financially literate. “What I loved the most is that there were so many women in the audience compared to the guys, normally it’s the opposite- so I’m excited and proud that people want to learn more about finances,” he said.
Final year student in mathematics and finance, Machuene Mahladisa told Wits Vuvuzela that he simply saw Absa banners outside the venue and decided to join. He said the seminar was informative, especially for young people who are entering the job market. “What shocked me mostly is finding out that less than 20% of South Africans can retire comfortably, so it’s important to invest in retirement annuity at an early age.”
FEATURED IMAGE: Private wealth banker, Tshepang Masilo giving a financial literacy talk at Wits university. Photo: Sfundo Parakozov
The financial pressure on students at Wits will not come from what they eat this year, if buying exclusively from on-campus restaurants.
Food outlets at Wits University have maintained 2022’s prices despite a 12,4% increase in the price of food and non-alcoholic beverages over the last year, as noted by the Stats SA Consumer Price Index (CPI) report , released in January 2023. Kara Nichha’s, on Wits’ East campus sells various Indian foods, including samosas at R4.00 and a soya burger at R20.00. It remains one of the most affordable places to grab a meal on campus.
The latest Food Basket Price Monthly Report by the National Agricultural Marketing Council (NAMC) shows that the price of onions, an ingredient in some samosas, increased by 47% while sunflower oil prices increased by 28.1% year-on-year. Manager, Malvina Mogano, said that the restaurant’s strategy to keep prices low includes using soy instead of meat.
Generous servings keep students coming back to Kara Nicha’s. Photo: Mpho Hlakudi
A customer getting their daily fix. Photo: Mpho Hlakudi
Kutlwano Serame, a regular customer, said, “Kara Nichha’s is a good place for [buying food], especially when you want to introduce first years that are struggling financially, especially in terms of having access to food because you can literally come here for R20.00 and you’re sorted for lunch.”
At Wethu Coffee Shop, in Solomon Mahlangu House, directly sourcing from farms is how costs are kept low said café manager, Valentine Nomvuyo.
The coffee bar is open weekly from 7am to 5pm and serves coffee and hot meals. Food prices range from R15.00 for a date and raisin muffin to R55.00 for a lunch meal. Nomvuyo said their breakfast combo special, the americano coffee and breakfast wrap, which costs R48.50, is among their best-selling items.
However, according to the NAMC study, the price of white bread, the main ingredient of their toasted sandwich, has increased by 20,4% year-on-year. Thando Gasa, a regular customer at Wethu Coffee shop, said, “They have really nice wraps, and they are affordable.”
But Jimmy’s Varsity, with outlets on East and West campuses, has announced that their prices will go up in the middle of February. The eatery sells various Halaal foods, from their Original Kota at R19.00 to a Hot Chicks family meal at R199.
The restaurant’s West Campus manager, Sandile Simango, said they are forced to raise menu prices because of skyrocketing costs from their suppliers. “Prices are getting higher and [inflation] is rising, making it harder to make a profit,” said Simango.
Lauretta Masiya, an employee at Jimmy’s, said that they have been told to “watch” portion sizes when orders are prepared, in an effort to remain profitable. “It’s not going well because customers tend to complain a lot… and we want the customer to be happy [but] at the same time, we also want the boss to be happy. It’s very challenging,” said Masiya. Unfortunately, the Bureau for Food and Agriculture Policy (BFAP)’s latest food inflation brief suggests that food prices could rise even higher, which may force many more campus eateries to raise their prices.
FEATURED IMAGE: A barrister prepares coffee for a customer at Wethu Coffee Shop. Photo: Mpho Hlakudi
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