Much of South Africa’s economic problems over the past decade can be attributed to the ruling party’s gross mismanagement of the economy and state-owned enterprises (SOEs), as well as policy uncertainty. As a consequence, the South African economy has experienced tepid – but still negligible – economic growth rates over this period.

Under the ANC government, countless bailouts to SOEs have turned them into a major drain on the fiscus, diverting billions of Rands that should be channelled to the poor and service delivery.

Further, the ANC government has failed to reduce the unemployment rate, the youth unemployment rate and poverty and inequality despite it having borrowed more than R1-trillion over the past decade. Rampant corruption and the mismanagement of the South African economy has resulted in an increase in the cost of living for the poor and the working class.

The UDM believes that a responsible government cannot leave the fate of South Africans to market forces alone. Nor can it sit back while the economy is underperforming; causing the quality of life of the poor and the working class to deteriorate.

As a social democratic party that works for “social reform” and “social renewal” in order to ensure inclusive growth and development, a UDM government will adopt pro-poor economic growth policies that seek to redistribute income, eradicate poverty, reduce inequality and ensure dignity and prosperity for all South Africans. For instance, a UDM government will cut VAT back to 14% and increase Corporate Income Tax from 28% to 29%. We would also restructure the SOEs portfolio of government and ensure that only the ones that are central to government’s growth and development strategy are kept.

UDM Manifesto 2019