The decision by Fitch Ratings to affirm its sovereign credit rating at “BBB-” and revise down its outlook to “Negative” indicates that South Africa is not out of the woods; and tough times lie ahead and difficult decisions await.
The latest reviews by the credit ratings agencies are not a good story to tell.
The signs of the economy recovering and the efforts of the Minister of Finance are undermined by the power struggle to capture national treasury, state owned enterprises and other key strategic economic areas through undue influence and party political factional interference.
The ANC must shape up or ship out.
The in-fighting within the ANC and the government is likely to continue over the next year,” Fitch said. “This will distract policymakers and lead to mixed messages that will continue to undermine the investment climate, thereby constraining GDP growth.”
The IFP maintains the view that when these political theatrics within the ANC are at play we must call them out because the government has wolves cloaked in sheep skin in general, and more specifically gangsters and criminals masquerading as leaders cloaked in freedom fighter credentials who have stolen all that is good about our freedom and democracy and replaced it with a glaring abuse of state power.
Moody’s in substantiating its decision of a “negative outlook” also points to “political uncertainty” and associated risks such as “low business confidence, and a challenging external environment characterized by low growth, investment and trade”
In this regard the ANC must shape up or ship out. A new political discipline is required.
The decision by Fitch to revise its sovereign credit rating to BBB- (Negative Outlook) brings South Africa closer to a potential downgrade to sub-investment and therefore the road ahead will be difficult to traverse amid an escalation in political uncertainty; such uncertainty does not assist in creating a conducive environment for economic growth and development.
The IFP believes that what is needed is a leadership which is equal to the tasks at hand, driven by the conviction to serve and committed to do the right things at right time for the right reasons for no other benefit other than the development of the people and growing our economy to create jobs, decrease inequality and eradicate poverty.
Issued on behalf of the Inkatha Freedom Party by:
Mkhuleko Hlengwa MP
IFP Spokesperson on Finance and Public Accounts
071 111 0539