ANC Government Ignores the Inflation Crisis

26 January 2023

The ANC's reckless economic policies have once again hit South African households where it hurts most - in their wallets. Today, the Reserve Bank Monetary Policy Committee announced an increase of 25 basis points in the repo rate, meaning the cost of servicing debt will increase at a time when our country is already reeling from an ANC government-induced cost-of-living crisis.

The announcement comes as a measure to contain the damage caused by the anti-poor fiscal policy framework of the ANC and the party’s failure to implement measures to combat rapidly rising prices. The shocking inflation statistics released last week reveal the true extent of the crisis - year on year inflation for overall goods has skyrocketed by 10.1%, with transport prices increasing by a staggering 13.9% and food and non-alcoholic beverages by 12.4%.

The price of bread, a basic food item, has risen more than 20% in 2022 alone.

But the ANC government doesn't care. Instead of implementing fiscal policies to soften the blow of rising prices and continuous power outages, they have chosen to bail out bankrupt state-owned enterprises and prop up their patronage networks.

The Minister of Finance, Enoch Godongwana, has even rejected the DA's much needed and practical proposals to cut the fuel levy, introduce a solar tax rebate, and expand the zero-VAT rated food basket to include essential items such as bone-in chicken, beef, tinned beans, wheat flour, margarine, peanut butter, baby food, tea, coffee, and soup powder. VAT on these items disproportionately impact the poorest 50% of South Africans who are already battling to put food on the table.

It is clear that the ANC government is far removed from the harsh reality of hunger and starvation in our country.

The DA will not stand idly by while they continue to play politics with people's lives. We will increase pressure on the government to implement workable economic policies and urgently address the cost-of-living crisis, especially the cost of food.

The time for empty promises and electioneering is over. It's time for the ANC to either take real action to address the plight of economically marginalised South Africans or step down and make way for a DA government that cares for all South Africans.

Issued by Dion George, DA Shadow Minister of Finance, 26 January 2023