South Africa can weather the storm on global financial markets, although domestic economic growth is likely to be slower as a result, ruling African National Congress president Jacob Zuma has said.
Zuma, who is likely to succeed South African President Thabo Mbeki after elections next year, also reiterated in an interview with Business Day that economic policies would not change with a new government.
The government has dismissed suggestions by ratings agency Moody’s this week that South Africa could be heading for a recession. But it concedes that domestic growth is likely to brake this year as higher interest rates and slower global activity take their toll.
”We are dealing with a global problem — we can’t grow on our own. We can’t say if there is a recession in big economies, we will go up,” Business Day quoted Zuma as saying. ”But what we all agree is that we will weather the storm.”
Investors have been worried about future economic policies in South Africa after Zuma, a favourite of the ruling party’s labour union and leftist allies, defeated Mbeki — who is credited with pursuing business-friendly policies — in a battle to lead the ANC last December.
”What informs ANC policy does not depend on one individual. Policy is not going to change, people should not be worried. We should just sharpen here and sharpen there,” Zuma said.
Zuma said the ANC did not agree with suggestions by its ally, the South African Communist Party, that Mbeki should step down before his term as state president ends next year. — Reuters