US Congress slams ANC government: ‘No longer the Party of Nelson Mandela’
28 September 2023
Yesterday, for the first time in a long time, the US Foreign Affairs Committee held a hearing on South Africa. The hearing aimed at “Examining the Current US - South Africa Bilateral Relationship”. This comes at a crucial time, with the AGOA Forum heading to South Africa from 2-4 November 2023. The Forum will discuss the future trade relationship between the US, South Africa and the Region.
Chairman of the Committee, Congressman John James did not mince his words. In his opening statement, he stated that "it is clear that the African National Congress of today is no longer the party of Nelson Mandela. While the South African story is one of hope, reconciliation and determination, the ANC story is motivated by perpetuating a system of elite capture, built on corruption and increasing government dependence through the National Democratic Revolution …”. He went on to mention the ANCs disastrous “empowerment” and “land reform” policies that have resulted in more South Africans becoming dependent on the state in an economy that isn’t growing.
This is not news to South African households battling to put enough food on their tables in the grip of a devastating government-induced cost of living crisis. Government has run out of money and is now desperately scrambling to cut its spending in an attempt to avert a fiscal disaster where it defaults on its huge and growing debt service costs, now the largest single item on the national balance sheet, already crowding out basic service delivery to the most vulnerable South Africans. Amidst this growing fiscal crisis, the ANC government is considering an increase in VAT in the region of 2%. Given that VAT is a regressive tax, this will hurt the poorest South African households the most.