The Institute of Race Relations expects the ANC to fulfil the EFF’s demand for Floyd Shivambu as finance minister in any coalition agreement.
Terence Corrigan of the Institute informed the media on Monday morning about a prospective alliance between the two parties after Wednesday’s general election.
The EFF also demanded free education and land expropriation without compensation.
Corrigan said this may devastate the economy.
The budgetary direction is uncertain, but watchers and businesspeople are aware of it.
“The ANC, having been in government long enough to understand the implications, would also be keen to avert investor panic and would insist on retaining the finance portfolio, whose incumbent would be selected as a safe pair of hands. This has been a traditional practice and has, in the past, provided a substantial degree of reassurance.
“The EFF has stated that a coalition with the ANC would rest on three non-negotiable policy items: expropriation of land without compensation, free education (to which the government has already made considerable commitments), and nationalisation of the mines. It can be anticipated that the ANC would have made a public commitment to carrying them out.
“The very entry of a government with this political nature can be expected to undermine whatever reassurance even a reputable finance minister might offer,” said Corrigan.
He argues that South Africa would undoubtedly face heightened capital flight and emigration, coupled with the loss of economic resources that this represents.
“In policy terms, the early time of the administration would likely be marked by a combination of inquiries into the interventionist policies already suggested by both the ANC and EFF — adopting specified assets being an obvious example.
“Where these are already well advanced or parsed into legislation, their implementation will begin in earnest. The National Health Insurance and extended ‘free’ education would definitely be the headline programs here,” stated Corrigan.
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