EFF statement welcoming the African Union’s harsh rebuke of Fitch Ratings

12 June 2024

The Economic Freedom Fighters (EFF) welcomes the African Union's Peer Review Mechanism (APRM) for its bold and necessary reprimand of opportunistic Fitch Ratings. In a statement, the APRM has rightly pointed out the premature and unsubstantiated nature of Fitch Rating's recent comments on South Africa's coalition negotiations underway, exposing the agency's clear political agenda, bias, and interference in the country's political affairs.

Fitch Ratings recently stated that following the results of the May 29 elections, the African National Congress (ANC) would be better off forming a coalition or a support arrangement with the Democratic Alliance (DA) for South Africa's credit profile, arguing that it would result in broad policy continuity and allow President Cyril Ramaphosa to continue his priorities with minimal disruption.

At the same time, Fitch deemed potential coalitions with the EFF as risky, citing our "radical agenda" and policies such as land expropriation without compensation, nationalisation of key sectors, and social grant increases. Fitch warned that such a coalition could lead to significant investor confidence erosion and a weakening of South Africa's debt trajectory.

For too long, Fitch Ratings and other Western-based rating agencies have meddled in South African politics, using their influential position in global financial markets to sway political outcomes in favour of the capital and financial markets. The EFF has consistently opposed such external interferences, which undermine the sovereignty of our nation and the democratic process. The latest statement from Fitch, suggesting preferred coalitions and casting aspersions on the potential policy directions of the EFF and other parties, is yet another example of such unwarranted political interference.

The APRM's criticism of Fitch Ratings is a commendable step towards asserting Africa's autonomy in global political and economic matters. It highlights the importance of African unity and self-determination, principles that the EFF has always advocated.

By standing against Fitch Rating's politically motivated commentary, the African Union is championing the cause of an independent and non-political assessment from global financial institutions, which is crucial for the integrity of our political processes.

We particularly appreciate the APRM's reminder to Fitch Ratings to maintain their independence and avoid political entanglements. As South Africa navigates the complex process of forming a coalition government following the general elections, it is imperative that extemal entities refrain from premature judgments and allow our democratic institutions to function without undue influence.

The EFF is committed to radical economic transformation and the upliftment of our people, and we will not be swayed by external pressures. We envision a South Africa where our policies reflect the will of our people, free from the dictates of foreign financial interests.

The AU's stance is a significant step in this direction, reinforcing the need for African nations to unite against extemal interference and support one another in our quest for true independence and economic justice.

Issued by Leigh-Ann Mathys, National Spokesperson, EFF, 13 June 2024