ANC must come up with clear policy plan that considers rating agencies and international investors: Experts

Experts say delegates at the African National Congress (ANC) Policy Conference would have to come up with a clear policy plan that also considers the concerns of rating agencies and international investors.

Rating agencies have flagged political uncertainty and social unrest among risks creating fear for international investors.

Government has set an ambitious goal in 2018 to raise R1.2 trillion over five years.

South Africa is faced with a multitude of mishaps due to low or no service delivery, high rate of unemployment and high poverty levels.

These factors are attributed to violent protests seen in the July.

Analysts say the July unrests exposed the country’s frustration with government’s administration.

With the ruling party’s policy conference, many are eager to hear whether the ANC will address these matters.

SEMO Advisory and Consulting director, Katishi Masemola says the ANC is likely to adopt radical policies.

Masemola says, “Against the background of  the July unrest, we are likely to see a bit more radical policy dispositions and I think the ratings agencies may have factored work to the equation because they are worried about the fiscal policy position of the country. They are worried about possible debt and as a result they think that more of radical policy parts will be pursued.”

Internal divisions might influence policy shifts

Other factors adding on to the country’s risk include fraud and corruption as well as State-Owned Entities dependence on government bailouts.

On the other hand, internal divisions within the ruling party is another cause for concern.

Political analyst Daniel Silke says because of this it is unlikely that any major policy shifts will emerge from the policy conference.

Silke says, “It would seem unlikely that we will see a dramatic policy shift or initiatives considering the dominate issue in the ANC, the issue is whether President Ramaphosa can retain his presidency of the organisation and therefore remain on as President of South Africa. In an atmosphere where the leadership contestation, policy often, especially more radical policy choices often take a back seat when the key issue becomes the leadership debate and the political squabbles existing between the various candidates and factions within the ANC.”

In its discussion document, the ruling party says it is worried about the “deeply entrenched corrupt practices. The party seeks to deal with corruption in government.

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