Economy Relies on ANC Presidential Election Outcomes, Ramaphosa Needs to Stay in Power for the Rand’s Sake

• Fitch predicts that the African National Congress's internal presidential election in December can affect the strength of the Rand and the South African economy as a whole
• The agency believes that if Ramaphosa remains the president of the ruling party, the Rand will stabilise
• The Rand is currently being weakened by the effects of the ongoing Covid-19 pandemic and growing distrust in the ANC

JOHANNESBURG - Fitch, an agency that specialises in credit ratings, predicts that the African National Congress (ANC)'s internal presidential election in December can affect the strength of the Rand and the South African economy as a whole.

The agency believes that if Ramaphosa remains the president of the ruling party, the Rand will stabilise, but if he doesn't then the country's economic situation could unravel to the point where the Rand could collapse.

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According to BusinessTech, the Rand is currently being weakened by the effects of the ongoing Covid-19 pandemic and growing distrust in the ANC, which could cause the currency to only grow by 2.1% this year.

Fitch's predictions for the Rand in 2022

Currently, Fitch predicts that even though Ramphosa is facing scrutiny from both within and outside the ANC, the president should be able to retain his position within the ruling party.

However, Ramaphosa has put forward a plan to boost South Africa's economy, The Citizen reports. The president said that he wants to champion science and technology, which he believes will recover the country's economy.

"As the country strives to recover from the effects of the Covid-19 pandemic, we are seeing science and innovation playing a far more prominent role both in our efforts to overcome the disease and rebuild our economy," Ramaphosa said.

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Reactions to financial predictions for 2022

@DokDrinkwater remarked:

"Probably the only currency in the world that has emotions, sentiments and expectations."

@Stylztd_1 shared:

"It's collapsing with him in charge mos."

@THEOKINGB believes:

"Let it collapse. We need a fresh start."

@Blcktyde asked:

"Is that a threat?"

@TheoWoods20 said:

"Tell us something new. The rand has already been bad for years now."

EFF rejects R11 bn World Bank loan, SA says it's useless

Speaking of South Africa's economy, Briefly News previously reported that the Economic Freedom Fighters have South Africans divided after issuing a statement regarding Mzansi's R11 billion World Bank Loan.

Heading to their Twitter account, the party called the loan "senseless and irrational" and has asked citizens to reject the economic policy it believes will only benefit "a few whites and co-opted blacks".

Going on, the EFF explained how the loan was just another ploy by the wealthy minority and corrupt government officials to loot state money.

Source: Briefly News