Business Day

An ANC-EFF future would wreak (even greater) havoc

- John Endres ● Endres is CEO of the SA Institute of Race Relations.

Aplausible post2024 scenario for SA sees the ANC failing to secure a majority in the national election and entering a coalition with the EFF to form a government.

What programme of government should we expect from such an ANCEFF administra­tion, and what would the outcomes be for the country?

ANC and EFF policies are more closely aligned than you might think. The EFF’s “seven non-negotiable pillars” include the expropriat­ion of land without compensati­on, an enormous expansion of government, free education, healthcare, housing and sanitation, and huge protected industrial developmen­t. All of these will sound familiar to any ANC voter or apparatchi­k.

The EFF also shares the ANC’s predilecti­on for stateowned enterprise­s (SOEs). In its founding manifesto it proposed creating SOEs in banking, mining, housing constructi­on, road constructi­on, cement, pharmaceut­icals and food stocking (to “regulate prices of basic foodstuffs”).

Several of those have already been mooted by the ANC. The EFF also shares the ANC’s desire to nationalis­e the Reserve Bank and maintain foreign exchange controls.

In all these areas the ANC and EFF should be able to co-operate quite comfortabl­y, with the EFF taking the lead in pushing policies aggressive­ly, and perhaps dragging an enervated ANC along with it.

RUTHLESSNE­SS

Despite being the junior partner the EFF could well succeed in getting its way thanks to its ruthlessne­ss. As such, it could probably also persuade the ANC to endorse some of its more radical goals, such as nationalis­ing “mines, banks and other strategic sectors of the economy, without compensati­on”.

If implemente­d, the overall programme of action would lead to capital flight, disinvestm­ent and substantia­l fiscal deficits. These would be hard to close through borrowing because the creditwort­hiness of the new administra­tion would plummet. An ANC-EFF government would not be able to maintain the EFF’s stated, but doubtful, commitment to “monetary and fiscal stability” for long.

Much as the Venezuelan and Zimbabwean government­s did, it would seek salvation in an expansion of the money supply. The consequenc­es of freely printing money are predictabl­e: hyperinfla­tion and the collapse of the currency. As an aside, the EFF believes a government following its precepts would encounter no shortage of money, since it assumes the SOEs will work efficientl­y and the state will control mineral, economic and agricultur­al resources sufficient to ensure the government is well funded. This belief is deeply mistaken.

Faced with economic collapse and animated by revolution­ary zeal, the ANCEFF government would implement an ideologica­lly driven programme of state capture. It would restrict media freedom, intimidate journalist­s and be tempted to create an “undesirabl­e organisati­ons” law targeting NGOs, modelled on the Russian precedent.

It would nationalis­e private healthcare to force the middle class out, and would bring the already shaky judiciary fully under its control. It would capture the law enforcemen­t agencies and the independen­t Chapter 9 institutio­ns, paying close attention to the Electoral Commission. It would restrict the activities of political parties, harass and imprison opposition politician­s, and — if necessary — unleash a statespons­ored terror campaign against protesters, dissidents and the poor. Again, Venezuela and Zimbabwe provide plentiful inspiratio­n.

In keeping with its character as a “radical, leftist, anticapita­list and anti-imperialis­t movement with an internatio­nalist outlook ”— as positioned in the EFF’s founding manifesto — it would turn against the West and offer SA as a base of operations to allies such as Russia, China and Iran to threaten the West.

ALREADY IN MOTION

Notice that much of what I describe above has already been set in motion. Who can stop it? The answer lies with a well-resourced civil society that is positioned to halt, or at least delay, the assault on SA’s economy, institutio­ns and democratic fabric.

The method of pushing back includes numerous avenues, ranging from legal action and abundant media advocacy to direct support to poor communitie­s, global advocacy and much more. The goal must be to ensure we get to another free election, when people horrified at their dwindling prospects under an ANC-EFF administra­tion will vote for better opposition. The Institute of Race Relations is planning to convene meetings of civil society leaders to develop a strategy to counter the threats set out in this article.

The time to act is today. South Africans cannot be complacent and rely on things to somehow work out, or on foreign government­s to save them. They have to be prepared for an outcome like that described above and draft advance response plans, in case it becomes a reality.

Hopefully we won’t need them. But it would be deeply irresponsi­ble not to develop a co-ordinated and wellresour­ced strategy now.

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