Fedusa calls for Zuma to resign after Moody’s downgrade

Fedusa says the abrupt Cabinet reshuffle in March illustrates a gradual erosion of institutional strength.

FILE: President Jacob Zuma. Picture: GCIS.

JOHANNESBURG - The Federation of Unions of South Africa (Fedusa) is calling for President Jacob Zuma to resign after Moody’s downgraded South Africa’s sovereign credit rating to BAA3 with a negative outlook.

Fedusa says the abrupt Cabinet reshuffle in March illustrates a gradual erosion of institutional strength.

It says this decision making is plummeting the country into a state of despair.

Fedusa says its outraged that the economy and the public have now been faced a double whammy in one week, following negative growth and the downgrade.

Acting general secretary Riefdah Ajam says, “We’re deeply dismayed by the downgrade even though it was somewhat expected following the disastrous mid-night move by President Zuma. We’re calling for President Zuma to review the current self-inflicted pain that has been caused throughout this time and in that regard, we’re calling for him to step down.”

Moody’s placed South Africa on review for a downgrade in April after then finance minister Pravin Gordhan and his deputy were sacked.

Last week, rating agencies S&P Global reaffirmed their sub investment grade at BB+.

The latest GDP figures show that South Africa has entered a technical recession, with economists saying this has put more pressure on agencies to review the way they see the country’s economy.

GDP contracted by 0.7% in the first quarter, along with a contraction on 0.3% in the last three months of 2016.

(Edited by Zamangwane Shange)