South Africans already facing inflation pressure may soon feel another hidden cost burden as cyber attacks on retailers and logistics firms quietly push up the price of everyday goods and services.
Image: Ayanda Ndamane / Independent Newspapers
As South Africans brace for potential inflation increases linked to global energy shocks, another less visible threat is quietly adding pressure to household budgets: cybercrime.
According to Richard Ford, ransomware attacks and cyber disruptions affecting major retailers, logistics firms, and supply chain operators are increasingly contributing to higher consumer prices across the economy.
While many consumers view corporate cyber attacks as isolated IT problems, Ford said the financial impact often extends far beyond the affected business and eventually filters down to the price of everyday goods and services.
“Consumers may not know the names of logistics or supply chain providers, but they feel the impact when those organisations are disrupted. A cyber incident upstream can delay goods, increase costs, and reduce availability, making cyber resilience a direct contributor to everyday affordability and economic stability,” said Ford.
South African consumers are already navigating mounting financial strain.
Recent data from Statistics South Africa showed consumer inflation at 3.1% in March 2026, slightly higher than the 3.0% recorded in February. However, the South African Reserve Bank has warned that inflation could rise further because of global energy supply disruptions linked to conflict in the Middle East.
Against this backdrop, Ford said that businesses are increasingly passing on the hidden costs of cybercrime to consumers.
According to IBM, the average direct cost of a data breach in South Africa reached approximately R40 million in 2025.
Beyond immediate ransom demands and operational disruption, businesses also face reputational damage, recovery costs, increased cybersecurity spending, and rising insurance premiums.
Integrity360’s 2026 Cyber Trends and Predictions Report found that the average recovery time from a major cyber attack now stands at 32 days, creating prolonged operational disruption for affected companies.
“A transport company whose systems are offline may delay stock reaching stores, while a retailer may struggle to process orders or manage cold chain logistics, absorb penalties or pay more to keep shelves stocked,” Ford explained.
“None of these costs appear on a till slip as a ‘cyber surcharge’, but they can still influence the final price consumers pay.”
Ford said cyber insurance costs are also becoming a growing financial burden for businesses operating in high risk industries.
“Rising cyber insurance premiums by themselves are becoming a material line item on the balance sheet, particularly for organisations in high risk sectors,” he said.
“As insurers demand stronger controls and increase premiums, those costs inevitably flow through the business, and in many cases, into the final price of services.”
The issue is significant in supply chains, where a cyber breach affecting one company can trigger wider economic disruption.
Even businesses with strong internal cybersecurity systems can remain vulnerable through external suppliers, logistics providers, software vendors, or outsourced partners.
Ford believes companies need to adopt a far more proactive approach to cyber resilience if they want to avoid operational disruptions and limit additional costs being passed on to customers.
“The most effective hedge is proactive resilience, simplifying security architecture, improving detection and response capabilities, and aligning controls to actual business risk,” he said.
“Organisations that demonstrate strong cyber maturity not only reduce the likelihood of costly incidents but are also in a better position to negotiate insurance premiums and avoid passing costs onto customers,” Ford added.
He said that businesses need to understand where they are most exposed, how quickly cyber incidents can be identified, and whether recovery plans are capable of functioning effectively under real world conditions.
As cyber threats become more frequent and sophisticated, Ford said cybersecurity should no longer be viewed as a back office technology issue, but as a core component of economic stability and consumer affordability.
“Seen this way, cybersecurity sits at the heart of the value chain that keeps goods moving, services running and prices as stable as possible,” he said.
“For consumers, the connection may be invisible, but for businesses it should never be ignored.”
Follow Business Report on Facebook, X and on LinkedIn for the latest Business and tech news.