Julius Malema says that while the Economic Freedom Fighters' policy positions are likely to be demonised by government, he believes the people will still support its cause.
After a lengthy absence from the South African political arena, the former ANC Youth League leader announced the official formation of the EFF on Thursday afternoon.
The firebrand politician said the party would fight for nationalisation of mines and land reform without compensation.
He said that while these policies may result in sanctions and a situation similar to that of Zimbabwe, he believed that South Africans were ready.
"South Africans should know they're going to be punished heavily by monopoly capital... there will be a day when we wake up without bread on the shelves and that's the day when you'll learn to make bread at home," Malema said.
Malema added that there was a strong possibility the party would form a coalition with other leftist organisations if it decided to contest next year's election.
He said that the party had already started consulting with senior government officials, some of whom occupy high-ranking positions within the ANC.
Malema added that the EFF was also meeting with the ANC's alliance partners to seek advice on how to become a successful movement.
However, he stressed that the EFF wouldn't think about working with the Democratic Alliance, as he considered Helen Zille's party to be the mouthpiece of white monopoly capital.
"We'll never see eye-to-eye with the DA. It doesn't matter what strategic matter they have, we'll never go to bed with them," said Malema.
Malema said that the national assembly of the EFF would be the decision-making body of the formation. The assembly would determine the formation's constitution and founding manifesto, as well as party colours and logos.