How world sees SA: ANC policies wielded like an axe to frustrate Ramaphosa reform

The demands by the ANC that the South African Reserve Bank should consider quantitative easing on the very same day that dismal GDP figures were released, appeared to be deliberate. ANC Secretary-General Magashule was flexing his muscle to remind Ramaphosa that he was not totally in control. The problem that Ramaphosa has, is that the decision to change ownership at the Reserve Bank was taken at Nasrec by the ANC's national elective conference. Magashule and other allies of former President Jacob Zuma are likely to use this decision and other resolutions taken at the conference, including land expropriation without compensation and the closing of the Israeli embassy, to frustrate and embarrass Ramaphosa who has been trying to tread a careful path between ANC policies and investors demands. And overseas media and investors have noticed. In an article in the Financial  Times, it is said that Magashule could use the ANC policies like an axe to hurt Ramaphosa… – Linda van Tilburg

By Thulasizwe Sithole

President Cyril Ramaphosa's tough slog to turn South Africa's economy around just got harder after a decision by ANC Secretary-General Ace Magashule to tamper with the independence of South African Reserve Bank's mandate. Ramaphosa, who was given a fresh mandate in May this year has inherited a country "skirting with recession and threats to growth". The ANC has added to his woes by calling for "quantitative easing for developmental purposes", which spooked the markets leading to a drop in the rand.

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