SACP Augmented Central Committee Statement
3 April 2023
The South African Communist Party (SACP) held its Annual Augmented Central Committee meeting over the weekend of 31 March to 2 April in Braamfontein, Johannesburg. The meeting included expanded representation from SACP provinces and districts, as well as from the Young Communist League of South Africa.
The Augmented Central Committee was convened to finalise the outstanding task of the Central Committee given by the resolution from the SACP 15th National Congress on State and Popular Power and Electoral Considerations.
The meeting was preceded by intensive and robust discussions by the provincial and district structures of the SACP over the last two weeks. Assessment of the developments in the country and the world was presented by the General Secretary, Comrade Solly Mapaila, followed by a Central Committee discussion paper titled State, Popular and Electoral Considerations: Contesting Elections, more effectively, with or without a Reconfigured Alliance.
The decision on the SACP and elections
The SACP Augmented Central Committee welcomed and accepted the general thrust of the Augmented Central Committee’s internal discussion document. The Augmented Central Committee agreed to contest elections with an effective and reconfigured alliance as our preferred modality as our posture toward the 2024 elections and beyond.
By a reconfiguration, we mean a common alliance commitment to defend and advance the National Democratic Revolution (NDR), based on the vision of the Freedom Charter. In addition, we will engage Alliance partners for a consensus around the following:
- A common analysis of the socio-economic conditions facing the working-class and poor, followed by a common socio-economic approach programme; manifesto development; and its joint implementation by an adequately inclusive Alliance leadership in parliament, provincial legislatures, Cabinet, provincial executive councils, municipal councils, and mayoral committees.
- Conduct of Alliance candidates based on common Alliance discipline during the campaign, as well as Alliance public representatives and office bearers afterward.
- Provisions enabling elected SACP representatives to articulate independent perspectives in parliament, provincial legislatures, and municipal councils within the framework of a reconfigured alliance.
- Accountability of elected Alliance representatives, as well as of SACP members to the Party, just as ANC members are expected to be accountable to the ANC, and our people,
- A common approach and binding democratic consensus-seeking consultation to coalitions when it becomes necessary to seek coalition partners post-elections based on the results of the election.
This is the position of the SACP as we approach the 2024 elections or any by-election. The meeting also agreed that should a satisfactory reconfigured alliance not materialise, the SACP will move towards a popular Left front as an electoral modality.
Furthermore, on a case-by-case basis, the lower structures of the Party will make motivations for the Party to stand independently for the by-elections.
Building a left-popular front remains essential, even for purposes not related to contesting elections, for building a powerful socialist movement of workers and poor on the ground as well as defending and ensuring that our national democratic revolution takes the socialist direction.
In the next few weeks and months, our position on contesting elections will be the focus of our engagements within the Alliance, with the ANC and COSATU, and by extension to mass organisations of youth, women, civics, religious, and so on. We will also engage our communities and the broader organised workers.
The persisting crises of capitalism in our country
The Augmented Central Committee convened in the context of deepening crises of the system of capitalism in this country and the world on many fronts.
The objective crises of capitalism in our country have been made possible by the neo-liberal restructuring of the economy, failure to discipline capital, as well as privatisation and corporatisation of state-owned enterprises.
We have seen the rising cost-of-living crisis hitting hard on the workers and poor. The recent increases of the electricity tariffs by NERSA and the repo rate by the South African Reserve Bank leading to interest rates have further increased the cost of living of the working-class.
South African Reserve Bank’s decision on the interest rate
The Augmented Central Committee is deeply concerned about the South African Reserve Bank (SARB) Monetary Policy Committee’s decision to increase the repo rate once again by 50 basis points (bp) in response to rising inflation levels.
While the significance of price stability as derived from the SARB’s mandate is in no dispute, it is equally important to note that the mandate also dictates that price stability should be maintained “in the interest of balanced and sustainable economic growth”. Therefore, this decision, which comes at the back of economic-growth decline in the fourth quarter of 2022, as reported by Stats SA, and rising unemployment, can hardly be considered balanced nor sustainable and in no uncertain terms underscore the SARB's narrow focus on inflation in total disregard of the need to consider economic growth and employment in its monetary policy decisions.
This punitive decision against the working-class and poor particularly is unlikely to resolve inflation in South Africa as the underlying cause of inflation is not demand-driven and is even induced by conditions beyond our control like the imperialist aggression against Russia through their proxy war in Ukraine. By the SARB's own admission, the current inflation in SA is of a supply-side nature, that is, so-called cost-push inflation.
The current rise in prices is fundamentally caused by the crisis of capitalist profitability. The immediate cause includes, among others, rising oil prices, supply-side constraints, load shedding, potential non-competitive behaviour in food supply chains and other industries, exchange rate depreciation, and other supply-side factors rooted in capitalist falling profitability.
Notwithstanding the fact that since the SARB hiking cycle started towards the end of 2021, the repo rate increased nine times – by a cumulative 425bp, inflation, however, remained around the 7% level – averaging around 6.9% in 2022 with the latest increase of 7.0% in February 2023. This may indicate the ineffectiveness of monetary policy to deal with the supply side or cost-push inflation.
On the demand side, raising interest rates is a blow to the already constrained working-class, middle class, and different sections of the business sector, especially SMMEs. This, no doubt, will further depress the already low consumer spending and thus negatively impact aggregate demand. On the supply side, rising interest rates increase the cost of production as producers face higher borrowing costs.
The decision to raise policy rates under the current circumstances is likely to make inflation worse while further depressing economic growth. This is a recipe for the economic phenomenon called “stagflation”. Thus, for all intents and purposes, the monetary policy path that the SARB is pursuing will indeed most likely reduce inflation by engineering a depression and this will have a devastating impact on the country's economy.
As South Africans, we must urgently have an open inclusive discussion about the mandate of the SARB. We need to categorically determine and reach a mutual understanding of what the role of the SARB regarding economic growth (and thus employment) is.
When all things are considered, however, it must be recognised that there are many other factors affecting and driving inflation that are beyond the practical control of any central bank. Addressing these factors will reduce the need to use one blunt instrument (repo rate) to deal with inflation.
Monetary and fiscal policy
These crises cannot be solved now and again by an austere fiscal policy. Neither can these crises be resolved by monetary policy that narrowly targets inflation at the expense of balanced economic growth. These will require macro-economic policies that contribute towards economic growth, the transformation of economic ownership, and industrial structure through industrialisation which also takes advantage of green industrialisation to contribute towards a low-carbon economy.
Dealing with the current situation will require the government to decisively address our inadequate rail infrastructure, aging road networks, and congestions on our roads – all tend to increase the cost of living and production and thus negatively impact inflation developments.
The immediate challenge of load shedding and the energy crisis
The SACP welcomes the introduction of the National State of Disaster which is already showing positive signs of reducing and eventually ending load-shedding. We also welcome the exemption of critical infrastructure such as hospitals and water facilities from load-shedding.
While the Minister of Electricity must be supported in his responsibilities to deal with the electricity crisis, the SACP reiterates its stance that this crisis must not be used as a ploy to privatise Eskom, which can only make access to electricity unfavourable to most South Africans.
On the contrary, the SACP argues for building Eskom as a publicly-owned enterprise, as part of the general program to support industrialisation, energy security, and a just energy transition—thereby contributing to energy security, job creation, and structural transformation of the economy.
SACP calls for a strengthened capacity of the democratic state to respond to and address floods and disasters
The SACP is concerned with the state’s inability to respond effectively to disasters that affect the lives and livelihoods of our people through their direct and indirect impacts in places such as KwaZulu-Natal, Eastern Cape, and North-West.
The case of the collapse of the mining slime dam in Jagersfontein in September 2022: Emanating from these, livelihoods of communities, namely, hundreds of houses destroyed together with most and in some instances all belongings, lives lost and one still missing, livestock lost all affected by this disaster.
To this day, nearly seven months after the disaster, there has been very little progress despite the declaration of a state of emergency, which should have given powers to state authority, enabled by the Disaster Act.
The SACP notes with grave concern the arrogance of the mining bosses who refuse to offer fair pay to communities affected and calls on the government to step up its role to address the desperate situation facing these affected communities.
The new wars of imperialism
The SACP, along with communists the world over, has always called for an end to all wars and for peace in the world. Capitalism on the other hand is fuelled by profit logic. It does not want peace as it has proven to be more profitable during wars, particularly the industrial-military complex for stoking wars. Workers, the poor, and the vulnerable suffer the most in any war.
Recently, US-led western imperialism has become even more arrogant, aggressive, and greedy. This is leading to more conflicts around the world. Imperialists claim to support freedom and democracy, but they are constantly breaking international law and applying it selectively. They isolate and impose sanctions on those who resist their attempts to control the world, and even grossly impose their ideas as universal ideas and values of the entire world.
But increasingly these attempts are being resisted. The imperialist unipolar world is becoming a multipolar world through struggles of the working people across the world including, in imperialist capitals and by various states asserting their sovereignty and international order based on international law.
The SACP welcomes the call made by the General Secretary of the Communist Party of China, President Xi Jinping, for a Global Civilisation Initiative. The initiative calls for respect for the diversity of civilizations, upholding the common values of humanity in pursuing peace, development, equity, justice, democracy, and freedom, and promoting robust international people-to-people exchanges and cooperation. To this extent, the SACP will soon hold a high-level bilateral engagement with the Communist Party of China.
BRICS Summit
The SACP welcomes the coming BRICS Summit which will be hosted by South Africa on 14 – 22 August 2023.
The BRICS countries (Brazil, Russia, India, China, and South Africa) have a combined 26.7% of the world's land surface, a total population of about 3.21 billion (41.5% of the global population, and a combined GDP of US$26.6 trillion (26.2% of the gross world product.
The existence of BRICS challenges the US and European-dominated unipolar world order.
The SACP looks forward to the presence of leaders such as Presidents, Xi Jinping, Lula da Silva, and Vladimir Putin. The SACP, together with other progressive organisations, will organise public events and programs in support of progressive ideas at the summit.
We will build people-to-people relationships and show solidarity with the countries building a new inclusive world order based on cooperation, multilateralism, and respect for each other’s sovereignty.
ICC Arrest Warrant for President Putin: Down with Judicial Imperialism
The SACP rejects the arrest warrant issued by the International Criminal Court (ICC) based in the Hague, Netherlands.
The arrest warrant, based on frivolous charges, comes on the eve of an important proposal for peace in Ukraine by President Xi Jinping during his state visit to Russia and the BRICS Summit due to be hosted by South Africa.
The International Criminal Court (ICC) was established to try individuals charged with the gravest crimes of concern to the international community: genocide, war crimes, crimes against humanity, and the crime of aggression.
Unfortunately, imperialist powers continue to manipulate this multi-lateral institution and use it for judicial imperialism. Despite many calls, and ample evidence, the ICC has consistently refused to charge the likes of Netanyahu, Bush, Clinton, Blair, and Obama who have destroyed countries and killed thousands of people in Palestine, Iraq, Afghanistan, Libya, and Yugoslavia, with the continued occupation of other countries territories like in Syria, Guantanamo Bay in Cuba, of the Korean peninsula.
The SACP calls upon the South African government to ensure that President Putin attends the BRICS Summit and that he is afforded safe passage.
Furthermore, the SACP calls upon the government to act with speed in withdrawing from the ICC and repealing the Implementation of the Rome Statute of the International Criminal Court Act 27 of 2002.
Africa – Cuba Solidarity Conference
The SACP supports the convening of an Africa – Cuba Solidarity Conference later this year. This is an important initiative to bring progressive forces from across the African Continent together in united action in solidarity with the people of Cuba, a country that has given so much to the world and received less in return, a country that remains the torch-bearer of the future of humanity, as they resist imperialism and endure tremendous hardship due to a crippling and unjust economic blockade imposed by the USA for over 60 years.
Western Sahara
The SACP notes new aggressive military actions from Morocco into Western Sahara, further building a dividing (apartheid) wall of over 2000km.
We re-affirm our unflinching solidarity with the people of Western Sahara and Polisario Front and further express our gratitude to the people and government of Algeria for the continued principled support of the Saharawi people and their just struggle for national independence.
We call on the African Union and the United Nations to speed up the process toward the self-determination of the Saharawi people.
We further applaud the important political position of the South African government on their solidarity with the Western Sahara.
Situation in Swaziland
The SACP condemns the continued reign of terror against the people of Swaziland by a ruthless monarchy determined to resist a democratic transition at all costs. Of particular concern is the use of South African-based mercenaries to assassinate political opponents of the regime.
We condemn the brutal assassination of Advocate Thulani Maseko, the Chairperson of the Multiparty Stakeholder Forum negotiating the transitional conditions with SADC and the Swaziland government.
The SACP calls upon the South African government, SADC, and all progressive forces to show solidarity and provide appropriate support to the democratic forces in Swaziland.
The SACP wishes the Communist Party of Swaziland a successful 5th National Congress to be held on 6-9 April 2023.
Way forward
In the next few weeks and months, the SACP will work towards repositioning our liberation movement to turn the corner and accelerate the transformation of the material living conditions of the people. We need to immediately cushion the working-class and South Africans against hyperinflationary associated with high food prices, higher energy costs and thus increasing the cost of living for the working-class and poor.
Issued by Mhlekwa Nxumalo, Acting Spokesperson, Head of Organising Department, SACP, 3 April 2023
