As inflation squeezes disposable incomes, protein-rich staples like poultry and beef are becoming increasingly out of reach for many low-income families. Producers of these products, alarmed by this trend, are pressing for more protein items to be added to South Africa’s zero-VAT list—a step they argue is vital to making essential nutrients affordable and addressing the nation’s growing food insecurity.

Mmamoloko Kubayi, head of the ANC's economic transformation committee, recently signalled a governmental push to expand the VAT-free food basket. The decision, announced on October 26, follows rising pressure from both the South African Poultry Association (SAPA) and Beefmaster Group, whose supply chain executive, Roelie van Reenen, advocates for zero-rated VAT status on beef. This measure, they argue, is not merely about prices; it is a necessary intervention to ensure access to the quality protein that is crucial to physical health, especially in a country where lower-income households struggle with limited dietary diversity.

The argument for exempting these products from VAT is compelling. The National Food and Nutrition Security Survey (NFNSS) found that over 63% of South African households experience food insecurity, with the poorest regions, including North West and KwaZulu-Natal, bearing the brunt. Diets deficient in animal protein lead to a cascade of health risks, from poor cognitive development in children to weakened immune systems in adults. While staples like grains and starches are essential, a well-rounded diet that includes protein is equally vital for South Africans’ health and productivity.

Affordability, however, remains a substantial obstacle. South Africa’s economic growth lags behind its population growth, compounding the strain on families facing rising costs for electricity, transport, and food. According to PwC, South Africans are being forced to prioritise non-food expenses, leaving less room in household budgets for protein-rich foods. This trend has implications far beyond individual health, threatening the agricultural supply chain and the economic stability of food producers.

A new report by Stellenbosch University economists, commissioned by the Shoprite Group, underscores the severity of the crisis. By 2023, food security in South Africa has hit a ten-year low. The report identifies dietary diversity as essential for child health and recommends that the Treasury consider zero-VAT status for critical protein sources.

Van Reenen of Beefmaster Group argues that, despite the recent easing of food inflation and hopes for a modest interest rate cut, consumer relief must go further. “We must create an environment in which people can access good, nutritious food,” he insists. Indeed, the South African food sector remains one of the most affordable globally, but the economic pressures of high unemployment, rising energy costs, and low wage growth make it imperative to intervene decisively.

Zero-VAT status for proteins is not a panacea, but it is a powerful measure to restore affordable access to an essential part of a healthy diet. The stakes are high, and food producers are right to sound the alarm. Ensuring a diet that meets nutritional needs for every South African is not merely a matter of food policy; it is an investment in the nation’s future health, productivity, and stability.

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