South African President Cyril Ramaphosa has declared an “economic emergency” as the African National Congress (ANC) unveiled a comprehensive ten-point plan to revive the country’s struggling economy. The announcement comes amid ongoing labor tensions at the state-owned power utility Eskom and growing financial troubles within the ANC, which threaten to deepen instability.
Speaking at the launch of the initiative, Ramaphosa announced the creation of an “Economic War Room” within the Presidency. This task force will coordinate government performance and monitor progress in job creation, state efficiency, and industrial growth.
“We are treating this as an emergency because it truly is one. The Economic War Room will ensure that government departments are held accountable, that results are monitored, and that South Africans see the impact of our actions,” Ramaphosa said.
The announcement comes at a time when South Africa is facing persistent unemployment, slow economic growth, and ongoing challenges in the energy sector.
The rand traded relatively steadily on Tuesday (7th) at around 17.21 per dollar, supported by an increase in foreign reserves to 67.9 billion dollars, up from 65.9 billion in August — slightly above analysts’ expectations.
Tensions rise at Eskom
In a parallel development, the state-owned power company is preparing for heated wage negotiations.
The company’s largest union is demanding a 15% pay increase — more than four times the inflation rate — following the partial stabilization of the national grid after years of rolling blackouts.
Eskom spokesperson Daphne Mokwena declined to discuss specific wage demands, stating that formal negotiations had not yet begun.
Analysts warn that the standoff could reignite tensions in the sector, potentially disrupting the fragile energy recovery that has brought some relief to businesses and households.
ANC’s financial troubles worsen
Adding to the country’s growing list of crises, the ANC itself faces a potential insolvency battle.
Reports indicate that the party’s bank accounts have been seized to settle debts amounting to 4.5 million dollars, threatening access to over 55 million dollars in public and private funding ahead of next year’s crucial local elections.
Party members fear the financial strain could weaken the ANC’s campaign capacity and deepen internal divisions.
Legal and financial hurdles
Meanwhile, AfriForum — a South African non-governmental organization founded in 2006 that focuses primarily on defending Afrikaner interests and rights — successfully obtained a temporary court order suspending Eskom’s 2.8 billion dollar deal with the National Energy Regulator of South Africa (Nersa), deeming the agreement “illegal and non-transparent.”
The ruling was hailed as a victory for public accountability but may complicate the company’s financial restructuring efforts.
Separately, the Government Employees Pension Fund (GEPF) announced a temporary freeze on new withdrawal requests from two of its funds between October 7 and 21 to allow for a system update, although regular benefit payments will continue.
Despite these internal challenges, the rand’s relative stability underscores investor resilience amid global volatility — a sign that, for now, markets are still giving South Africa the benefit of the doubt.
Source: Diário Económico
