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.