South Africans save R12.5 million on groceries through surplus food marketplace

South Africans have saved R12.5 million on groceries while preventing 200,000 meals from ending up in landfill through Refreshi, a local startup that built a surplus-food marketplace that has expanded from just 35 partner stores to 700 nationwide in the space of a year.

The startup has released its very first annual Grocery Savings Impact Report, revealing how the sale of quality surplus food at discounted prices (instead of throwing it away) is helping South African households stretch their grocery budgets while creating a new revenue stream for retailers.

Through its app, Refreshi connects consumers with quality surplus food from grocery stores, bakeries and restaurants. Users can browse discounted "Surprise Bags" available at participating stores near them, pay for them securely online, and collect them during a scheduled pickup window at the end of the day. Food that would otherwise have been discarded is instead enjoyed by consumers at a fraction of the original retail price.

The model has exceeded initial expectations, and has delivered significant results over the last year. Since launching in Stellenbosch in March 2025, Refreshi bags are now available in 700 participating stores across Cape Town, Johannesburg, Pretoria, Durban, Gqeberha, George and Mossel Bay, with an average growth rate of 10-15 new stores per week as of July 2026. These stores include Spar, Bootlegger, Vida e Caffe, King Pie, Chateau Gateux, Vovo Telo, Ou Meul, Newmark Hotels and OK Mini Marks to name a few.

The platform now serves more than 200,000 registered users, and rescues more than 20,000 quality meals from the landfill every month. Over the past year alone, South African consumers have collectively saved R12.5 million on their groceries through Refreshi Surprise Bags, while participating retailers have recovered more than R10 million in revenue from quality food that would otherwise have been written off, undeservedly, as waste.

The local environmental benefits have been equally significant. By rescuing approximately one kilogram of food through every Surprise Bag sold, the Refreshi community has prevented an estimated 500,000 kilograms of CO₂ emissions, conserved 120 million litres of water and saved more than 400,000 square metres of agricultural land.

"Food waste isn't only an environmental issue, it's becoming a cost-of-living issue for millions of South Africans," says Jakob Holbak, CEO and Founder of Refreshi. "Every Surprise Bag helps a family spend less on groceries while helping a business recover value from food that is still perfectly good to eat. That's why we've seen such strong growth over the past year."

The growth comes against the backdrop of a severe national food waste challenge. Based on the latest industry reports, South Africa discards an estimated R61.5 billion worth of food every year, with approximately 10.3 million tonnes of edible food being sent to the landfill annually.

“Organic waste now accounts for more than half of the country's general waste stream, placing increasing pressure on municipal landfill sites while local households continue to battle rising food prices during a cost of living crisis that has been extremely punishing to consumers this year. We believe technology can help change these circumstances, for consumers, retailers and our environment. By creating an easy-to-use, everyday app, we knew we could build a pathway for consumers and businesses to keep surplus food in circulation, while putting money back into both their pockets,” adds Holbak.

The company's momentum shows little sign of slowing. Refreshi conservatively expects to exceed 2,000 participating stores within the next year. Looking further ahead, the company sees the opportunity to build one of South Africa's largest circular economy marketplaces by rescuing millions of meals annually. International markets suggest the opportunity is substantial. Italy, with a population similar to South Africa's, has nearly 29,000 participating stores on comparable surplus-food platforms, rescuing approximately 22 million meals every year.

“Our startup aims to play a role in complementing the important work already being done by organisations such as FoodForward SA, with which we have partnered, and SA Harvest. While food donations remain critical for supporting vulnerable communities, not every surplus product can be redistributed quickly enough. Refreshi’s app helps bridge that notable gap,” concludes Holbak.

The startup’s consumer app is further supported by the Refreshi Exchange, a separate business-to-business platform that enables manufacturers, distributors and retailers to move surplus inventory efficiently, before it reaches expiry. Altogether, both platforms are well equipped to deliver on the startup’s vision to build one of South Africa's largest circular economy marketplaces.

As South Africa works towards its commitment of halving food waste by 2030 in line with the UN Sustainable Development Goals, Refreshi believes the solution will come from making food rescue a normal part of everyday shopping rather than an occasional act of sustainability.