S.A may slip into recession - ANC

South Africa is facing the looming threat of slipping into a recession after recent downgrades by rating agencies Fitch and S&P Global. Enoch Godongwana, who heads the ANC's Economic Transformation Committee, revealed that the committee is currently examining the implications of these downgrades. In response to the crisis, the committee has devised a set of measures aimed at cushioning the economy from the severe impact. One of the key focus areas highlighted by Godongwana is the need to stabilize governance within the state institutions and demonstrate the financial stability of State-Owned Enterprises (SOEs). Additionally, addressing policy uncertainties is crucial to instilling confidence in the economy. The ANC is calling for collaboration between various sectors, including government, labor unions, and businesses, to create a conducive environment that supports companies during this challenging period. The committee plans to take proactive steps to develop a coordinated plan to tackle the economic challenges that have led to the current situation. This includes convening economic round table discussions with key stakeholders to address critical issues affecting the economy, with a specific goal of increasing investment levels to 30% of GDP. These round table meetings will be conducted regularly to monitor progress and address emerging issues. In order to protect vulnerable groups from the adverse effects of the economic downturn, the ANC intends to provide assistance to low-income workers, poor households, and marginalized communities. This support may involve providing financial aid to firms operating in underserved areas, enhancing access to credit for businesses, and facilitating entry into export markets in the region. The government will also focus on optimizing its efficiency programs to support economic growth. Efforts to reform the governance structure of state-owned enterprises are underway, with a focus on improving transparency, accountability, and the appointment of competent CEOs and board members based on merit. The ANC is committed to promoting growth and job creation through these initiatives. Godongwana emphasized the importance of transparent and merit-based practices in appointing leadership roles within state-owned enterprises, emphasizing accountability and performance-based pay structures. The ANC's Economic Transformation Committee is determined to navigate through the current economic challenges and steer South Africa towards a path of stability and growth. As South Africa braces for the potential impact of a recession, the ANC's proactive measures offer a glimmer of hope in navigating the turbulent economic waters. The collaboration between government, businesses, and various stakeholders is crucial in charting a course towards recovery and resilience.