South Africa’s economic growth rate could recover to between 1.7% and 1.9% this year, according to IRR chief executive Frans Cronje. He was reacting to the late-night resignation of Zuma as President.
Cronje said that “if a compelling case can be made for growth and fiscal prudence in the State of the Nation Address and the Budget Speech to follow, the odds of a further rating downgrade fall to below 50%”.
Cronje is also of the view that the ANC should “comfortably attain a majority of above 60% in the next election”.
However, he added: “Maintaining such a majority will be determined in the main in the economy. The government must aspire to growth rates of above 5% of GDP over its next term to have any hope of significantly eroding the unemployment rate.”
Trade union federation Cosatu agreed and says it is an opportunity for change in government.
Cosatu said the ANC now had a chance to give “its government a facelift”. Cosatu spokesperson Sizwe Pamla said the incoming president was tasked with restoring confidence and dealing with the “mediocrity and bureaucratic arrogance that has paralysed government.”
“Some ministers and government leaders need to be removed and replaced in order for our economy to grow and the people-centred development to thrive… We do laud him for finally doing the right thing and freeing the country from what was a momentous week of political turmoil.”
Praises for Zuma packing his bags and buggering off to Nkandla have also been heard from other opposition parties like the DA as well as alliance partner, the South African Communist Party, who said “in welcoming this long overdue resignation there are many lessons to be learnt. In the first place‚ this was not a willing stepping-down. Only a protracted struggle from within the ANC and its alliance has finally dislodged this President gone wrong… The SACP is proud of the role that we have played in this respect from within the Alliance and indeed from within the ANC caucus.”
DA leader Mmusi Maimane said Zuma had done untold harm to the country and left a legacy of unprecedented unemployment‚ growing poverty and corruption.
“We rejoice with all South Africans today as the long‚ painful decade of Zuma’s presidency finally comes to an end‚” Maimane said in a statement.
“Even in his resignation speech‚ he refused to take any responsibility for his actions‚ and for the harm he caused the country. Such shameless disdain requires a level of pathology that reveals Jacob Zuma’s true nature.
“He must now face the 783 criminal charges still awaiting him before the courts. There can be no amnesty or immunity for Jacob Zuma.”
