How parties intend to mitigate rising costs
Poor economy, inflation, VAT and weak wage growth main reasons
With the cost of living being one of the biggest problems confronting South Africans ahead of elections, some of the major political parties have outlined how they intend to mitigate the effects of this on consumers.
According to parties surveyed by Sowetan, some factors behind the high living costs are driven by food, transport and basic services, exacerbated by inadequate state functions and high debt burdens.
Addressing these issues requires comprehensive policies and investments in sectors like mining, agriculture and energy to boost the economy and create sustainable development, they said.
ActionSA’s Pieter Scribante said the main reasons for SA’s high cost of living were high inflation, weak wage growth and a poor economy. “Consequently, with inflation outpacing wage growth, in real terms, the average worker’s salary is worth less each year,” he said.
Scribante said the country’s weak economic performance was a vital driver of the worsening cost of living in SA.
“SA’s weak economic performance is from 2014-2023. …the average South African is poorer in 2024 than in 2014.”
He said the best chance of alleviating the problem was increasing the economy and creating more jobs.
DA spokesperson Solly Malatsi said the ANC’s economic policy was one of the major factors of the high cost of living.
“Particularly stuff like the increasing price of electricity, the increasing price of fuel and also just the levels of corruption. All in all, these things play an effect on the high cost of living that we are experiencing. One of the things the DA has proposed to reduce the cost of living is making sure we do not introduce new taxes.
“We also need… to expand food items that are exempted from value-added tax.
“This includes stuff like flour, margarine, butter and chicken… by exempting these foods , it will ensure that at least basic essentials is not as unaffordable,”
Malatsi’s words were echoed by Build One SA’s (Bosa) Graham Charters, whose party also wants to expand the list of zerorated food items “because with VAT likely to increase, this is a vital intervention for poor households that spend a disproportionate amount of income on food”.
He also said they would scrap numerous fuel levies, which make up a third of the total cost of a litre of petrol. “This has a direct impact on lowering citizens’ transport costs as well as an indirect impact on lowering the cost of food.” He said they would also be freezing the 31.4% electricity price increase scheduled for the medium term.
“Again, this is an out-of-touch and unaffordable increase for already squeezed households. Ultimately, the best remedy to address struggling households is to put more jobs in homes. …to put a job in every home – at a minimum – will require at least 2-million new jobs,” said Charter.
Rise Msanzi’s Gugu Ndima said: “You cannot have a functioning economy without a functioning state.” Ndima said the party proposed a three-year wealth tax to establish a national growth fund.
Steve Motale of the Patriotic Alliance said addressing the factors of cost of living requires government policies, “economic reforms, social programmes and private sector initiatives to ensure the cost of living remains manageable for everyone.
“SA truly doesn’t have enough SMMEs, and this is also a drag on employment.”
The ANC and EFF did not respond.