The ANC says the credit downgrades by global ratings agencies was clear evidence that South Africa must pull together.
The ANC briefed the media today following recent decisions by three global ratings agencies to downgrade South Africa to “junk status”.
Responding to questions about reports that nuclear build programme gets underway in earnest in June, ANC NEC member, Enoch Godongwana said that the downgrades would require government to consider spending carefully.
He also said that a recession was possible.
Godongwana said that South Africa must pull together following downgrades.
NEC colleague, Stone Sizana, told the briefing that the country needs to respond to the downgrades announced by Standard and Poors and Fitch. He said we must work hard to avoid another ratings agency, Moody’s from doing the same.
Meanwhile, City Press reported Sunday that “a confidential document reveals that South Africa’s nuclear-build programme kicks off in earnest in June when Eskom issues a formal request for proposals from companies bidding for the estimated R1 trillion contract.”
The report said that the nuclear deal – for which Russian company Rosatom was widely considered to be the frontrunner – was, according to senior National Treasury officials, “directly related” to President Jacob Zuma’s axing of finance minister Pravin Gordhan and his deputy Mcebisi Jonas.
City Press reported that the internal Eskom document dated three days before Gordhan and Jonas were axed revealed a tight timeline for the programme that would see four plants built to provide 9600 megawatts of electricity to the country.
