There is a huge amount of vested interest keeping the current ANC structure in place despite obvious dissatisfaction by party voters, says ETM Analytics economist, George Glynos.
In an interview with Radio 702 on Monday evening, Glynos said that political jockeying around finance minister Pravin Gordhan has caused a ‘big fear factor’ in the market, particularly talk around alleged ‘state capture’.
“It’s become very clear in trading actions we witnessing that investors and traders are taking the most conservative route they possibly can going into a weekend. Everything that is going on at the moment is just not helpful,” Glynos said.
“I think the ANC is deeply divided. It’s massively divided. When your own supporters are rallying outside your head office, asking you to listen to what voters have clearly told the ANC in these recent municipal elections, it is something to be particularly concerned about,” the economist said.
The ANC took a beating in the local municipal elections last month, losing approximately eight percentage from 62% in 2011, to just 53.9%.
On Monday members of different factions of the ANC turned up at Luthuli house both defending president Jacob Zuma, and calling for his head.
According to Glynos, the story behind the story “is why on earth the ANC is not responding, why are they not listening to their voters?”
“I’ve heard various different versions of what could be going on behind the scenes. It ultimately comes back to this belief…that the ANC at the moment, especially in the upper brass, are being held together by a very strong line of patronage, and there’s a tremendous amount of vested interest keeping the current structure going, not just for financial reasons, but for self-preservation reasons as well,” the economist said.
“Because there are so many vested interests, there is a feeling in the market that this is going to drag on – and it’s going to drag on for as long as the upper brass can continue out of fear, should it all fall apart, that there could be some fairly serious repercussions not just again financially, but for themselves personally,” Glynos told Radio 702.