The Reserve Bank recently increased interest rates by 25 basis points, raising the repo rate to 7% and the prime to 10.5%.
Members of unions affiliated to the Congress of SA Trade Unions (COSATU) marched to the offices of the South African Reserve Bank in Pretoria on Friday. Photo: Warren Mabona
More than 200 members of unions affiliated to the Congress of SA Trade Unions (COSATU) marched to the offices of the South African Reserve Bank (SARB) in Pretoria on Friday to protest about the high cost of living and unemployment, among other concerns.
This follows a recent decision by the Reserve Bank to increase interest rates by 25 basis points, raising the repo rate to 7% and prime to 10.5%.
Gauteng chairperson Amos Monyela told GroundUp that workers were battling with the high cost of living. “We want the SARB to slow down and not increase interest rates,” said Monyela. “The price of food has gone up since the start of the war between the US and Iran. We also want the Competition Commission to work effectively against unnecessary increases of essential grocery items.”
Provincial secretary Louisah Modikwe said the union handed memorandums to the departments of health, employment and labour, transport, education, and water and sanitation.
Modikwe, reading out the memorandum, said workers are increasingly forced to choose between buying food, paying transport costs, servicing debt, accessing health care or providing quality education for their children.
“This is not only an economic crisis, but also a crisis of human dignity and social justice. The rising cost of food, electricity, transport, fuel, education, healthcare and basic services have become unbearable for workers and their families. This march represents a collective demand for urgent interventions to protect workers, the poor and the unemployed from economic collapse and social devastation.”
Other demands called for: government intervention to regulate excessive food price increases; lower fuel prices, public transport subsidies, and a comprehensive job creation programme.
The Chief Operating Officer of SARB Khutjo Mabetwa accepted the memorandum and promised to give it to the relevant officials.
South Africa‘s biggest labour unions on Wednesday urged workers not to participate in anti-immigrant protests that have seized the country, and said they could face consequences if they skip work to attend.
South Africa is on edge ahead of a June 30 deadline which anti-immigrant groups have given for all undocumented foreigners to leave the country. Protests and potential civil unrest are expected, after weeks of sometimes violent xenophobic attacks.
Four major unions including the Congress of South African Trade Unions (COSATU), which represents around 2-million people, said in a statement that workers would not be protected if they do not go to work on June 30.
“We urge workers to report for duty and not place their employment at risk,” they said.
The unions echoed President Cyril Ramaphosa‘s call on Tuesday not to scapegoat migrants for South Africa‘s problems.
“Removing foreign nationals from workplaces, communities or public spaces will not reopen factories, repair municipalities, strengthen public healthcare or create sustainable jobs,” said the unions COSATU, FEDUSA, SAFTU and NACTU.
Africa’s largest economy has more job opportunities than many other African countries and has long attracted large numbers of foreign workers. Some politicians have seized on the issue in recent months to blame such migrants for widespread poverty and crime.
South African media outlets reported on Wednesday that clashes had erupted between police and thousands of Malawians awaiting repatriation in the coastal city of Durban. Police fired stun grenades and teargas after a crowd became agitated, said News24.
Malawi said earlier in the week that 10 000 of its nationals were in distress and hoping to return from South Africa. While the country has been organising buses to bring them home, it put out a public call for donations to assist with the effort.
“Government is resolute in its commitment to bring home every Malawian who wishes to return from South Africa,” the government said.
“However… the scale and urgency of the operation have created unprecedented financial, logistical, and humanitarian demands.”
Other countries including Ghana, Nigeria and Mozambique have also repatriated citizens due to safety concerns.
South Africa’s annual consumer inflation rate climbed to 4.5% in May from 4.0% in April, reaching its highest level since July 2024 and placing renewed pressure on already strained household budgets.
According to Statistics South Africa, the surge was driven largely by fuel costs, with the fuel index rising by 14.3% in May and recording an annual increase of 28.7%. Petrol prices were up 24.8% year-on-year, while diesel costs soared by 53.8%.
#SAInflation || The inflation surge was largely driven by increases in fuel prices.
The fuel index recorded a second large monthly increase, leaping by 14,3% to reach an annual rise of 28,7%.
— Statistician-General Risenga Maluleke (@SGMaluleke) June 17, 2026
The increase has sparked concern among the labour federation COSATU, which warned that workers are bearing the brunt of rising living costs.
“Workers cannot afford to see a rise in inflation, especially over such a short period of time, given that most workers are paid a pittance and not a living wage by their employers,” read the COSATU’s statement.
COSATU added that the inflation spike is “bleeding workers who are already drowning in debt, borrowing at unsustainable levels, simply to buy food and electricity and service other debt”.
While food inflation continued to ease, falling to 1.9% from 2.9% in April, consumers still faced higher prices in several categories, including dairy products, tea and household staples. Electricity and municipal charges also remained significant contributors to inflationary pressure.
The South African Reserve Bank’s Monetary Policy Committee is scheduled to meet on 23 July, following a 25-basis-point increase in the repo rate to 7% last month.
COSATU urged policymakers to avoid further rate hikes, arguing that the current inflation surge is fuel-driven and not caused by domestic demand. It also called for fuel levy relief and measures to shield workers and grant recipients from rising costs.
“Similarly, Eskom must be assisted to reduce the increasingly unaffordable price of electricity… If inflation continues to increase, government must table a supplementary budget amendment bill to cushion Social and SRD Grant recipients from inflation.”
The Congress of South African Trade Unions (COSATU) in the Western Cape will lead a mass march to Parliament and the City of Cape Town on Friday, 19 June 2026, calling for urgent action to address the growing cost-of-living crisis affecting workers and poor communities.
The march will begin at Hanover Street at 10:00, where COSATU members, community organisations and supporters are expected to gather before handing over memorandums outlining their demands.
COSATU Western Cape Provincial Secretary Malvern de Bruyn says rising prices of food, electricity, water, fuel and transport, coupled with stagnant wages, are placing immense pressure on working-class households.
“Workers and communities across South Africa, and particularly in the Western Cape, are facing a deepening cost-of-living crisis. Households have been forced into a debt spiral as the prices of basic goods and services continue to rise while wages fail to keep pace with worsening economic conditions. Research indicates that consumers are taking home approximately 47% less in real terms than they did a decade ago, while the costs of essential services such as electricity, water, food and transport have increased dramatically. Working-class families are being squeezed from all sides and are struggling to meet their daily needs.”
Among the federation’s demands are lower electricity and water tariffs, reduced fuel and food prices, increases in social grants, stronger enforcement of the National Minimum Wage, and the introduction of a Universal Basic Income Grant.
“The time has come for workers and communities to unite and demand decisive action to address the cost-of-living crisis. Together, we can build a society where all people can live with dignity and social security.”
COSATU has called on workers and communities across the province to join the protected march, saying collective action is needed to push for economic relief and social justice.
The Congress of South African Trade Unions (COSATU) has now given the City of Cape Town seven days to respond to a list of urgent demands submitted earlier this morning, following a protest that laid bare the deep financial strain many households are under.
A group of about 150 residents joined and voiced their support for the march, underscoring the growing anger and exhaustion over the rising cost of living in Cape Town.
COSATU’s Malvern de Bruyn said residents across the City of Cape Town are being pushed to the edge by relentless increases in electricity tariffs, transport fares, and basic food prices. He stressed that immediate intervention is needed to prevent already struggling families from falling further into hardship.
“We are giving them enough time to respond to our demands. We want solutions and we want them soon. If we are not satisfied with the outcome, we will go back to the drawing board, which could see another march in the City.”
Although the demonstration was organised at short notice, de Bruyn said the turnout reflected a deeper reality: many residents are no longer coping with the relentless squeeze on their incomes.
Speaking to SmileFM News, several protesters, who asked to remain anonymous, described the daily struggle of trying to sustain their families despite being permanently employed.
One resident said the burden of rising costs has become unbearable.
“The cost of living has increased enormously in recent years. We cannot keep up. I am paying nearly R50 a day for electricity and I just can’t afford it.”
Another protester pointed to the relentless rise in fuel prices and its knock-on effect across the economy.
“We keep seeing the petrol price increasing and then decreasing, but we never see the prices of food decreasing, even though prices are increased as a result of fuel prices. It has reached a point where I am living pay cheque to pay cheque and I can’t afford the things I could before. I am just buying the things we need, yet I am still struggling.”
De Bruyn confirmed that COSATU will await the City’s response before deciding on the next steps, including possible further action should the demands not be adequately addressed.
