South African farmers, still reeling from a challenging 2023, will face more adversity in 2024 with a significant electricity price surge. The increase, set to take effect from 1 April, further strains food producers and consumers alike.
The National Energy Regulator of South Africa's (Nersa) approval of a 12.74% electricity price rise from April implies a considerable food price hike. This increase will severely impact farmers, causing a ripple effect. This added cost will inevitably be passed on to consumers.
Farmers, already struggling to keep their operations afloat amid constant power outages, will be further burdened by the electricity price rise.
Professor Sampson Mamphweli, head of the energy secretariat at the South African National Energy Development Institute, warns that the price hike will impact not just South African agriculture, but overall food production. He anticipates this could potentially lead to an escalation in food prices.
Source: foodformzansi.co.za