JOHANNESBURG: South Africa鈥檚 powerful trade union federation Cosatu, a key coalition partner of the ruling African National Congress (ANC), has called for embattled President Jacob Zuma to resign following a deeply unpopular Cabinet reshuffle.
Bheki Ntshalintshali, union general secretary, said it was time for Zuma to 鈥渟tep down鈥� after his purge last week of Cabinet critics, which included the removal of former Finance Minister Pravin Gordhan.
Gordhan鈥檚 sacking contributed to a credit ratings downgrade to junk status on Monday by Standard & Poor鈥檚 (S&P) as pressure on Zuma grew over his move to oust opponents within the Cabinet. 鈥淲e no longer believe in his leadership abilities,鈥� Ntshalintshali said at a media briefing.
鈥淭he president was careless and reckless,鈥� he said, adding that the downgrade would 鈥渃ost the country a lot.鈥�
Cosatu, along with the South African Communist Party and the ANC, was at the forefront of the effort to dislodge white-minority rule in South Africa that led to non-racial elections in 1994.
It has openly backed Zuma鈥檚 deputy, Cyril Ramaphosa, who led Cosatu during the anti-apartheid struggle, to succeed him in 2019 when the president must stand down.
鈥淓ven if it means marching into the street, we will do that to make our point. We believe in this alliance led by the ANC but we want a reconfiguration of this alliance,鈥� said Sidumo Dlamini, Cosatu president.
Cosatu鈥檚 intervention came as South Africa鈥檚 new Finance Minister Malusi Gigaba said that Monday鈥檚 downgrade to junk status was a setback for the economy.
鈥淲e acknowledge yesterday鈥檚 announcement was a setback. But now is not a time for despondency,鈥� he told a media conference.
鈥淲hat these reviews highlight is that we need to reignite our nation鈥檚 growth engines.鈥�
S&P said the cut to below investment grade reflects 鈥渉eightened political and institutional uncertainties鈥� following Zuma's shock purge of critical ministers.
The shake-up has 鈥減ut at risk fiscal and growth outcomes,鈥� the ratings agency added as it downgraded South Africa to BB+ from BBB-.
Gigaba said that 鈥渢here has not been a change in governments 鈥� there has been a change in executive governance,鈥� adding that he had been working closely with his predecessor at the Treasury.
Mmusi Maimane, leader of the main opposition Democratic Alliance, branded the rating downgrade 鈥渁 clear vote of no confidence in President Zuma.鈥�
The treasury issued a statement in response to the S&P downgrade saying it showed the need to 鈥渁ccelerate inclusive growth and development.鈥�
The rand fell three percent against the US dollar following Monday night's downgrade. The rand was trading at 13.86 against the greenback at 1045 GMT on Tuesday.
Moody's ratings agency too said it was placing its own South Africa rating -- two notches above "junk" status -- on review for a downgrade, a decision it said was "prompted by the abrupt change in leadership of key government institutions".
Mmusi Maimane, leader of the main opposition Democratic Alliance, branded the S&P downgrade 鈥渁 clear vote of no confidence in President Zuma鈥�.
The treasury issued a statement in response to the S&P downgrade saying it showed the need to 鈥渁ccelerate inclusive growth and development.鈥�
"Reducing reliance on foreign savings to fund investment and relying less on debt to finance public expenditure will secure South Africa's fiscal sovereignty and economic independence," it added.
The country was granted a reprieve at the end of last year when rating agencies did not drop it to the "junk" category following a series of downgrades.
Zuma's cabinet overhaul exposed deep divisions within the ANC, and DA officials are confident they can recruit enough support from ruling-party MPs to unseat the president.
"There are quite a number of other colleagues and comrades who are unhappy about this situation, particularly the removal of the minister of finance who was serving the country with absolute distinction," Ramaphosa, the ANC deputy president, said after the reshuffle.