Here’s why South Africans are the most FRUGAL people on earth

Now here’s a strange boast. In a good news story of sorts from Business Tech, research by auditing firm Deloitte has found that South Africans are the most frugal people on the planet right now. Which goes to show, as difficult as the cost-of-living crisis is, we are adapting like South Africans always do.

SOUTH AFRICANS ARE THE MOST FRUGAL

South African are being hit with rampant levels of grocery inflation, as we’ve explored in our monthly grocery-basket stories. Certain vegetables, fruits and the cost of sugar has seen inflation rise to 16.4%, which is the highest reading June 2017.

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Amidst this cost-of-living crisis, the Deloitte June 2023 Food Frugality Index looks at behaviours associated with financial stress and what impact they’re having on consumers. South Africans are the most frugal in the study because they regularly engage in three or more frugal behaviours to make ends meet.

HOW DO WE RANK?

Deloitte said that this highest level of frugality was measured across the 13 countries in the index. South Africa came first with 46%, second was Canada with 37% and Brazil ranked third with 36%.

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Deloitte says South African consumers are making several trade-offs in their purchasing decisions. 58% said that they saved by buying fewer fresh products and more shelf-stable foods. They are doing this with a meal in mind, considering the price and portion size.

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People are no longer buying unnecessary products. 51% said they are only buying the essentials. And 35% said they bought less food than they wanted, a behaviour which speaks to a genuine shift in buying habits.

CHEAPER IS NOT NECESSARILY BETTER

However, as we explored in our story on five healthy and affordable foods, 39% of respondents say they are switching to cheaper meats and lower-cost ingredients. This is not necessarily a healthy move as you still need to shop cleverly to not buy inferior foods that are bad for you.

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Deliotte said 80% of respondents anticipated even higher grocery prices over the next few months, so this is a habit that is here to stay. This is a sentiment also echoed by a massive anticipated fuel price hike in September.

CUTBACKS IN ALL AREAS

Other cutbacks that ensure South Africans are the most frugal people on the planet right now are any purchases of non-essentials like electronics and eating out at restaurants. These have both dropped by 4%.

Do you believe South Africans are the most frugal people on the planet? And how are you surviving the cost-of-living crisis? Share your tips and ideas with our audience in the comments section below.