Interest rate hike further deepens South Africa’s woes 

24 November 2022

ActionSA notes today’s decision by the South African Reserve Bank’s Monetary Policy Committee (“MPC”) to raise the interest by a further 75 basis points. While we understand and respect the MPC’s independence and mandate to tame inflation, we must acknowledge the devastating effect this decision will have on South African consumers that are already facing severe economic challenges.

Taking today’s decision with Eskom’s requested 32% tariff hike, despite the economic damage caused by ongoing loadshedding, and the ever-rising cost of living, the knock-on effect on the quality of life of all South Africans will be devastating. Ultimately, more people will be plunged into desperate situations, increasing the vulnerability of our people that have already had to endure so much over the past years.

We cannot ignore the fiscal reality our government faces: thanks to decades of ANC-mismanagement, our government does not have any funds or fiscal room to lighten the financial load of poor South Africans with government-funded relief efforts. While the high level of inflation is a global phenomenon, responsibility for South Africa’s lack of options to support consumers lies squarely at the feet of the ANC.

Come 2024, ActionSA will offer South Africans an alternative government that will focus on building a resilient economy that will continue to give people hope in challenging economic times. We will not only strive for economic growth but increasing access to economic prosperity that empowers all South Africans to weather economic storms.

Issued by Herman Mashaba, ActionSA President, 24 November 2022