Ratings agencies have raised a warning alarm over political tussle that has crowded the country and how hardly it will affect the country in the future.
The agencies said issues with government relating to the the ANC’s next leader, among many other political risks, will put the country in danger in years to come.
The Ratings firm Standard & Poor’s which is expected to announce its verdict on South Africa’s economy by Friday (3 June) warned the government to avoid making “quick fix” decisions that would fuel political favour among the population, at the expense of the economy, saying that it would ultimately push the country over the edge to junk.
Ratings firms Standard & Poor’s and Fitch’s verdict is expected to either push the country into junk status or hold its current position at one level above junk.
The ruling ANC party is expected to hold its elective conference in 2017 to elect a the party’s new president as current president Jacob Zuma’s tenure ends.
Despite the rising influence of opposition parties like the DA, EFF and Cope, it is expected that following the wide spread of ANC’s influence in local politics, it would likely be in the position to present a new president.
Speaking on the agencies’ warning, ANC secretary general Gwede Mantashe said even though ratings firms raised the question of the party’s 2017 conference, government was not working to please these groups, rather working for the good of the country.
SA’s economy has in 2016 been struggling to regain its stand despite economic challenges compounded by high unemployment rate and a politically volatile environment caused by the forth coming municipal elections in August.
However, much of the country’s economic stagnation has been linked to long-standing government policies, wasteful spending, and political stumbles by president Zuma.
Zuma’s leadership has been widely criticized for its cronyism, where connected friends are given preference in state owned businesses and where his friends are being promoted to high positions in state-owned companies.
Of course President Zuma will play a major role in selecting who succeeds him despite huge criticism of its effect on the party and country.
It was on this note therefore that the ratings agencies fixed their attention to who becomes the future leader of not just the party but the country as well in assessing potential risks moving forward. But ANC’s Mantashe said the Ratings agencies should instead pay more attention to the Government and not on mere speculations