- Pravin Gordhan is being accused by the ANCYL of showing bias towards Ramaphosa
- Gordhan stated that Ramaphosa's "New Deal" would prevent any future downgrades
- The ANCYL have also accused the rating agencies of having political agendas
The outcome of the ANC’s elective conference will directly impact the country’s future and possible further downgrades.
This is the view economists and analysts have taken after the ANC Youth League accused Pravin Gordhan of trying to manipulate the outcome of the conference by promoting Ramaphosa as the best option.
Gordhan said in a previous statement that the country’s economy would fare a lot better with Ramaphosa as leader. He said that if Ramaphosa proved victorious, we no longer need to worry about the ratings agencies.
Gordhan stated that with Ramaphosa’s “New Deal” the country will see a change in the growth of numbers, increasing inclusivity and a new form of optimism.
In response to Gordhan’s comments, ANCYL national spokesperson Mlondi Mkhize said: “His confidence in uttering those words could only mean that he is well briefed on the ratings agencies' decisions after the 54th ANC national conference, or he is lobbying the agencies to take a particular position if comrade Ramaphosa is not elected.”
Briefly.co.za learned that Mkhize also said it would not be ideal if the ratings agencies were communicating with the former finance minister and not with Malusi Gigaba who currently holds the position.
Mkhize accused the ratings agencies of also having political agendas and that the ANCYL have always suspected it.
Gordhan refused to respond to the league’s claims.
South Africa’s long-term local currency rating was downgraded by S&P Global Ratings on Friday to junk status. Moody’s has put the country on review to possibly be downgraded.
Dawie Roodt, chief economist of the Efficient Group, said he had very little doubt that Nkosazana Dlamini-Zuma’s election as president would ignite a negative reaction from the ratings agencies.
They would however probably act positively if Ramaphosa was elected as he may be able to influence the facts over time.
Roodt did however stress that whoever should win the title of President of South Africa, that they would not be able to change the economy overnight.
He pointed out that the state’s debt will still be present whether or not there are political agendas.
IOL reported that he said he did not think the rating agencies had political agendas, but that a lot of investors do listen to them and take them seriously.
Bonke Dumisa, an Economist Professor, said that the rand dollar exchange stayed stable despite the downgrade, but that the situation would probably change after the elections. He said that the changes would only be seen in the new year.
He added that Christmas shopping will not be affected as the conference would be concluded before the 22nd of December.
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