PRETORIA, Jan South Africa’s ruling African National Congress (ANC) which held a three-day party caucus here this week, has called on the government to take bold action to grow the economy and avert the possibility of a credit ratings downgrade.

The caucus, or lekgotla as it is called in South Africa, was held ahead of the State of the Nation Address (SONA) by President Jacob Zuma to Parliament next month and was attended by the ANC’s alliance partners and Cabinet Ministers

Economic growth forecast is at less than one per cent for the year and rating agencies have warned that any fiscal missteps could see the country downgraded to junk status.

The party has also expressed concern with an application by state-owned power utility Eskom for an electricity tariff hike, saying affordable and accessible energy is crucial to economic growth.

ANC Secretary General Gwede Mantashe told a media briefing here Wednesday after the lekgotla that the government must deal decisively with state-owned enterprises (SOEs).

“We must deal decisively with the threat of State capture, resolve governance problems in SOEs, implement stringent cost-cutting measures and consolidate the implementation of sound fiscal parties to strengthen the people’s confidence in the South African economy.”

The ANC Lekgotla reflected on the recently renewed trade agreement between South Africa and the United States under Washington’s African Growth and Opportunity Act (AGOA).

Mantashe said all trade agreements entered into since 1999 must be reviewed.

“There must be a review of all trade agreements entered into by the democratic government since 1999. The review must assess socio-economic impact and the extent to which the agreement advances South Africa’s economic interest,” he added.

“The government must be alive to the need for an exit strategy where agreements have a potential to defeat the core objective which is to expand, increase and grow our domestic industries and markets.”

SOURCE: SABC