Cost-of-Living Crisis Looming for South Africa? 30 Years of ANC Economic Mismanagement Blamed

A stark warning has been sounded regarding the escalating cost-of-living crisis in South Africa, with the United Democratic Movement (UDM) attributing the looming hardships to three decades of economic mismanagement under the African National Congress (ANC) government.

In a statement issued by Nqabayomzi Kwankwa, UDM Deputy President and Chief Whip, the party highlighted the profound challenges facing South African households. Despite National Treasury’s acknowledgment of the ongoing economic pressures, little relief is anticipated in the near future.

The situation was exacerbated on April 1, 2024, when Eskom’s approved tariff increase came into effect, resulting in a 13% rise in electricity bills for direct customers and industrial users. Coupled with already high utility costs, such as water and electricity, this hike further burdens residents’ cost of living.

Moreover, fuel prices surged on April 2, 2024, with the coast seeing a 60-cent increase in 95 unleaded petrol, now priced at R24.33, while inland prices rose by 65 to 67 cents, reaching between R24.78 and R25.12 in Gauteng. The ripple effect extends to transportation costs and vehicle ownership expenses, compounding the financial strain on households.

Statistics South Africa (Stats SA) paints a grim picture, indicating that approximately 26.5% of South Africans live below the national poverty line. These figures, dating back to 2021, underscore the pervasive economic hardships faced by millions across the country.

The UDM squarely attributes these challenges to ANC’s economic mismanagement, noting that economic growth remains stagnant at less than 1% annually, while the unemployment rate has soared to crisis levels, with real unemployment at 41.2% and youth unemployment nearing 70%.

In response to these dire circumstances, the UDM advocates for a National Dialogue to address pressing issues plaguing South Africa. This inclusive forum, involving government, political parties, civil society organizations, and citizens, aims to foster consensus and transparency in finding sustainable solutions to poverty, unemployment, corruption, and social unrest.

The UDM underscores the importance of genuine engagement from all sectors of society to ensure diverse perspectives are considered in decision-making. Ultimately, the party views the National Dialogue as a pivotal step towards building unity, trust, and accountability in South Africa’s democracy.