South Africa's ruling African National Congress will ignore ratings company Moody's advice and call for an increase in mining taxes, said Enoch Godongwana, who heads the ANC's Economic Transformation Committee.
Speaking to Moneyweb in an interview in Johannesburg Tuesday, 4 December 2012, Godongwana said the ANC must ensure that the lives of poor black South Africans improve. "Unless we do some radical transformation, we'll create fertile ground for an uncontrollable revolution," he said.
Moody's Investors Service and Standard & Poor's have downgraded the nation's debt, citing slower economic growth after violent mining strikes and political pressure to raise spending. The ANC holds its five- yearly electoral conference this month amid calls for radical policy change to tackle a 25.5 percent unemployment rate. "We're kind of in a Catch-22 situation," Godongwana said. "Do we please Standard and Poor's and Moody's or do we deal with the kind of constituencies we're facing. We're walking that tightrope."
While Godongwana ruled out the ANC conference agreeing to any form of mine nationalisation, he said increased taxes on mining is possible, Moneyweb reports.
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