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NewsFinancePolitics

ANC Faces Backlash Over VAT Hike and Load Shedding Ahead of Local Government Elections

Last updated: February 24, 2025 1:16 pm
Divinity Mokgwatshane
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ANC Faces Backlash Over VAT Hike and Load Shedding Ahead of Local Government Elections
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Public Discontent Grows Over Rising Costs and Power Cuts

The African National Congress (ANC) is facing mounting criticism over the proposed 2% VAT hike and the return of load shedding. Experts warn that these issues could significantly impact the party’s performance in the 2026 local government elections.

Contents
  • VAT Hike Sparks Public Outcry
  • Load Shedding Returns as Eskom Struggles
  • Political Fallout for the ANC

VAT Hike Sparks Public Outcry

Finance Minister Enoch Godongwana’s proposal to raise VAT from 15% to 17% has triggered backlash from citizens and political analysts. Independent political commentator Pule Monama has called the move “another nail in the ANC’s coffin,” suggesting it could further alienate voters.

Unisa political analyst Prof. Lesiba Teffo believes the VAT increase will be a deciding factor for voters in upcoming elections. “It will be in the hearts and minds of the people when they go to the elections next year and beyond,” he said.

Critics argue that the tax hike disproportionately affects lower-income South Africans, increasing the cost of essential goods and services. Some experts have suggested that if the government must raise VAT, it should zero-rate more basic food and health products to shield the poor from further economic strain.

Load Shedding Returns as Eskom Struggles

Adding to the ANC’s woes is the return of load shedding, which has once again disrupted businesses and households across South Africa. Eskom recently implemented Stage 3 power cuts following multiple power plant failures, exacerbating public frustration.

Despite government efforts to stabilize the energy grid, many believe the return of power cuts reflects ongoing mismanagement and a failure to implement long-term solutions. Political analysts warn that the persistence of load shedding could further erode trust in the ruling party.

Political Fallout for the ANC

The combination of the VAT hike and energy crisis is expected to impact the ANC’s electoral prospects. Experts suggest that the party’s internal divisions, coupled with unpopular economic policies, could drive voters toward opposition parties in 2026.

President Cyril Ramaphosa is also facing criticism for supporting the VAT increase, with some arguing that he and Deputy President Paul Mashatile should have advised against it. The government’s handling of economic policies and service delivery will likely be a major factor in determining the ANC’s performance in upcoming elections.

As South Africa heads toward the 2026 local government elections, the ANC faces growing opposition over economic policies and governance challenges. The proposed VAT increase and continued load shedding could be decisive issues for voters, potentially reshaping the country’s political landscape.

Also read: Ramaphosa Urges G20 Unity to Tackle Global Crises Amid Rising Tensions with US

TAGGED:ANCEnoch GodongwanaEskomLoad sheddingLocal Government ElectionsPolitical AnalysisSouth AfricaTags: ANCVAT HikeVAT increase
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