A guide to the ANC's policy proposals

The ANC is meeting to fine-tune its policies and adopt new ones, with load-shedding, social grants, Reserve Bank independence, immigration rules and management of state companies among items on its agenda. 

Several policies up for discussion on Thursday are reiterations of decisions the party took years ago, but didn't execute. Others are couched in broad terms, which will give the government leeway in deciding how to implement them.   

The policy changes were supposed to be debated at the ANC’s December national conference, where President Cyril Ramaphosa won a second term as party leader. However, that gathering was adjourned until Thursday because proceedings were delayed by registration glitches.  

These are some of the key proposals:

Energy

The ANC recognised that South Africa’s energy crisis is the biggest impediment to economic growth, but suggested it should largely stick to its current path to tackle the problem. It proposed a state-owned company continue to play a central role in bolstering electricity supply and that the government consider natural gas and more nuclear power to ensure a transition to renewable energy doesn’t disadvantage the country.

The party also suggested South Africa's weak transmission grid be strengthened and the development of green-hydrogen and electric-vehicle industries prioritised. 

State companies

The proposals say state companies operating in certain economic sectors should be overseen by relevant government departments. That could see the dissolution of the department of public enterprises. Eskom would then fall under the department of mineral resources and energy, while Transnet and SAA would be under the transport department.

This could raise concerns among investors as energy minister Gwede Mantashe has criticised the transition to green energy, even though Ramaphosa backs it.

A comprehensive review of all state-owned entities (SOEs) has also been proposed to determine which should be “retained, consolidated or repositioned.” There has been little follow-though on previous suggestions that the government sell non-core assets.  

Social grants

The draft documents state the system “should be protected from inflationary pressures and should be expanded to provide for basic incomes as fiscal space allows”.

The National Treasury has warned that an indefinite extension of the temporary monthly stipend, introduced to cushion the unemployed from fallout from the pandemic and seen by many as a precursor to a basic income grant, could threaten the sustainability of public finances unless a permanent source of funding is found. 

The ANC suggested measures be taken to contain state debt and a wealth tax be considered to reduce inequality. The draft policy documents also reiterate that the government should establish a state bank, even though finance minister Enoch Godongwana has warned the country can’t afford to fund it.

The documents state that the “historic anomaly of the private ownership of the Reserve Bank must be corrected in a manner that does not enrich speculators or overburden the fiscus”.

The Bank is one of a handful of global central banks owned by investors, including individuals, commercial banks and pension funds, though its shareholders have no say in monetary policy or the appointment of its governors and monetary policy committee. While the ANC decided in 2017 that the state should own the central bank, the process, which will require a change to the Reserve Bank Act and an agreement on the price of shares, has stalled.  

The party called on the Bank to “implement monetary policy in a balanced manner, taking into account growth, employment and exchange rate factors”. The Bank implements its inflation-targeting mandate in the interest of balanced and sustainable growth, in line with the constitution, and has repeatedly said obstacles to bolstering output fall outside monetary policy scope.

Immigration

The ANC has proposed immigration laws and policies be tightened, and that it no longer be possible to gain citizenship through marriage. It also suggests refugee reception centres be established near borders to avoid the flow of migrants to the country's cities.

The party lost ground in the 2021 municipal elections to newly formed opposition parties that advocated a harder line on immigration. The country has been plagued by xenophobic violence for years, with poorer South Africans seeing foreigners as competitors for jobs, housing and government services.

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