SACP: We reject any proposal for SA to approach IMF or World Bank

The tripartite alliance has rejected Finance Minister Tito Mboweni’s suggestion to approach the institutions for economic relief.

Mboweni's proposal to approach the International Monetary Fund (IMF) and the World Bank has been shut down by the ANC and its tripartite alliance partners, the SACP and Cosatu.

The secretaries of the alliance have written a letter to President Cyril Ramaphosa rejecting the suggestion by Mboweni.

SACP's first deputy secretary Solly Mapaila says lending from the institutions would compromise South Africa’s sovereignty and plunge the country into a debt trap.

Moody's downgraded South Africa’s credit rating to "junk" less than two weeks ago as the country began its national response to the Covid-19 pandemic.

Despite this, Mapaila says the government must explore a variety of domestic funding sources to protect the country's independence as well as its fiscal and monetary policies.

We reject any possibility for us to simply go to the IMF.

Solly Mapaila, First deputy general secretary - South African Communist Party

The IMF and the World Bank have never helped any developing country in the world or rescued them from any economic crisis.

Solly Mapaila, First deputy general secretary - South African Communist Party

They take away the national independence of countries through apportioning to themselves the national policy space.

Solly Mapaila, First deputy general secretary - South African Communist Party

We have to look into other measures... These aren't things that the [Finance] Minister can pronounce willy-nilly without appropriate discussion.

Solly Mapaila, First deputy general secretary - South African Communist Party

Listen to the SACP's perspective on The Midday Report:

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