Panic buying in the wake of Covid-19 underscores inequalities in South Africa

Article by James Lappeman, BizCommunity

Pictures of empty shelves and long queues have pervaded all forms of media in South Africa over the past few days. These scenes are not unlike those in other parts of the world as many consumers succumb to panic buying, in fear of running out of toilet paper – among other essential items.

Many authors have covered the reasons for panic buying and all behaviourists would agree that this is not a new or unexpected phenomenon. But the way it plays out in a country as economically unequal as South Africa accentuates the gap between the haves and have-nots.

Who wins and who loses from panic buying?

Of course, there is a first-mover advantage in getting to the front of the line. This behaviour is what often triggers a rush on the stores in the first place. But in a country that is not actually experiencing a famine or toilet paper shortage, the losers are those who cannot afford to stock up should the need arise.

While inequality exists everywhere, wealthier economies have a population base that is generally more capable of stocking up their homes when needed. This is also true of South African households in the upper middle class and at the top end.

The majority of consumers in South Africa are, however, unable to fill up a trolley in the best of times, let alone to finance a serious stockpile.[click here to read full article]

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