Economist says an ANC and EFF coalition could leave investors uncertain

Economist says an ANC and EFF coalition could leave investors uncertain

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An economist at Standard Bank has warned that an ANC-EFF coalition government would be the worst scenario for investor confidence.

The analyst, Goolam Ballim, said that if the ANC dipped below 50% support and had to join up with the EFF, the economists cost could serious.

Ballim said a coalition between the parties would lead to policy uncertainty and investor fears, and would likely reduce Ramaphosa's ability to pursue his economic agenda.

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Ballim made the comments while addressing the media. 

He added that a decrease in ANC support would make Ramaphosa's hold on power very precarious. In such a situation, Balllim said it was likely that Ramaphosa's opponents within his party might move against him and weaken his position. 

Additionally, he warned that if the ANC peforms poorly at the polls, this could lead to a boom in support for populist politicians, as could further economic problems, according to News24.

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While the most recent polls have put the ANC in first place come election time and have predicted only moderate gains for the EFF, Ballim expressed a different view.

He said that the EFF was growing in popularity among the youth, while the ruling party was not fully bouncing back to its pre-Zuma support.

In his view, the upcoming elections would play a major role in determing both the country;s political and economic future.

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Source: Briefly.co.za

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