ANC must shape up or ship out, says IFP

African News Agency (ANA)

ANC must shape up or ship out, says IFP
Inkatha Freedom Party

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 Inkatha Freedom Party said.

“The latest reviews by the credit ratings agencies are not a good story to tell,” IFP spokesman Mkhuleko Hlengwa said in a statement.

The signs of the economy recovering and the efforts of Finance Minister Pravin Gordhan were 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”, he said.

Fitch had said in its review that: “The in-fighting within the ANC and the government is likely to continue over the next year. This will distract policymakers and lead to mixed messages that will continue to undermine the investment climate, thereby constraining GDP growth.”

Hlengwa said the IFP maintained 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 sheepskin 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 Investor Services, in substantiating its decision of a negative outlook, also pointed to “political uncertainty” and associated risks such as “low business confidence, and a challenging external environment characterised 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) brought South Africa closer to a potential downgrade to sub-investment levels and therefore the road ahead would be difficult to traverse amid escalating political uncertainty. Such uncertainty did not help to create 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 the 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,” Hlengwa said.

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SOURCEAfrican News Agency (ANA)