Godongwana: Some ANC leaders need to understand effects of junk status

Credit rating agencies Standard & Poor's Global and Fitch last week downgraded South Africa’s credit rating to junk status.

Nomvula Mokonyane arrives at ANCYL rally at the Germiston stadium on 4 April 2017. Picture: Masa Kekana/EWN

JOHANNESBURG – The head of the ANC’s economic transformation sub-committee, Enoch Godongwana, says some senior party leaders need to understand the implications of the country's credit rating being downgraded to junk status.

The committee held a briefing on Sunday on the party’s discussion document on economic transformation.

On Friday, credit ratings agency Fitch announced South Africa’s credit downgrade to junk status.

This came after Standard & Poor’s downgraded the country to junk, citing political instability.

ANC NEC member Nomvula Mokonyane last week told ANC supporters the rand must fall, they will pick it up.

And then ANCYL president Collin Maine made this remark on Friday.

“We’re welcoming the junk status and what we’re saying is when the economy rises, it is held by us, the majority of this country.”

Godongwana says these leaders must be made to understand the consequences of junk status.

“Those comrades that do not understand this particular phenomenon, we still have to engage them to understand the consequences.”

He says if leaders continue to make these remarks, the credibility of the Treasury and particularly the Minister of Finance will be undermined.

(Edited by Leeto M Khoza)