South Africa’s data prices remain below headline inflation, but still pose a barrier to digital inclusion and economic participation.
This is according to the Competition Commission’s (CompCom’s) second Cost of Living (COL) Report, published yesterday.
It shows how prices for basic goods and services have changed since 2020, and what this means for household budgets.
This analysis is based on publicly available information, and it helps the commission understand how prices move through the value chain and where the gap is widening or narrowing.
The COL Report builds on the commission’s Essential Food Price Monitoring, launched in July 2020 to track selected staple-food prices from farm to retail. The monitoring programme has since expanded beyond food, and the COL Report now covers essential non-food items, such as electricity, water, housing, healthcare, transport, education and communication services, while also assessing how interest rates affect affordability.
The COL Report provides insights into the affordability of basic goods and services, especially for low-income households. Using Consumer Price Index data from Statistics South Africa from 2020 to January 2026, the report tracks price trends and shows that many essentials remain expensive, even as inflation eases.
It also looks at regulated prices, such as electricity and water, because they place a heavy burden on vulnerable consumers.
Digital economy participation
The report highlights internet access as an increasingly essential service, as more aspects of daily life – from education and job applications, to banking and government services – shift online.
It warns that for low-income households in particular, the cost of data can determine whether individuals are able to participate meaningfully in the digital economy.
“Access to affordable data is a critical component of economic and social participation in South Africa,” the commission says, noting that high inequality and spatial divides continue to shape who gets online and who is left behind.
The report links internet affordability directly to household welfare, arguing that data has become a basic input for economic activity.
It states that without reliable and affordable access, millions risk exclusion from opportunities such as online learning, remote work and digital entrepreneurship.
According to data collected by Statistics South Africa from providers including Telkom, the price of wired internet remained stable at just below 15% over the period from April 2025 to January 2026, staying under headline inflation.
Wireless data prices rose slightly in May 2025 but stabilised thereafter, averaging around 2% for the remainder of the year.
While the commission described this trend as encouraging, it cautioned that affordability remains a concern.
The regulator says South Africa ranks 31st out of 45 African countries for the cost of a 1GB mobile data package, indicating that prices are still relatively high compared to peers on the continent.
The findings suggest that even modest data costs can weigh heavily on lower-income households, particularly as connectivity becomes non-negotiable for accessing essential services.
The commission says monitoring internet pricing trends alongside broader inflation is key to understanding cost-of-living pressures, especially in a digital-first economy where connectivity is increasingly tied to economic opportunity.
The report concludes that despite recent price stability, further reductions in data costs will be critical to expanding access, reducing inequality and enabling broader participation in South Africa’s digital economy.
“Addressing the cost of living requires greater scrutiny of administered price-setting mechanisms, enhanced transparency and accountability in tariff determinations and targeted protection for vulnerable households,” says commissioner Doris Tshepe.
“Without deliberate attention to how essential service prices are formed and transmitted through the economy, cost pressures are likely to remain entrenched, limiting gains in household welfare and slowing broader economic recovery.”
#DataMustFall inquiry
The Competition Commission’s Data Services Market Inquiry, finalised in 2019, found that South Africa’s mobile data market was highly-concentrated and characterised by high prices, particularly for prepaid and low-volume users, which disproportionately affected poorer households.
It concluded that dominant operators were able to maintain elevated prices, while smaller players faced barriers to effective competition.
As part of its outcomes, the commission secured commitments from major operators to implement immediate price reductions on prepaid data bundles, in some cases by up to 30% to 50%, and to introduce “lifeline” data packages aimed at low-income consumers.
Operators were also required to offer more transparent pricing, extend the validity period of data bundles, and stop the automatic expiry of out-of-bundle data where possible.
In addition, the inquiry led to regulatory interventions to improve competition, including measures to reduce barriers for mobile virtual network operators, facilitate spectrum allocation and support infrastructure sharing.
While these steps contributed to some price declines and improved consumer protections, the commission noted that structural challenges in the market remain and continued monitoring is necessary to ensure sustained affordability and broader digital inclusion.
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