South African ruling alliance to hold key policy talks

The leadership of South Africa’s ruling alliance will meet in August to resolve policy differences on the economy and privatisation that have strained the partnership, Reuters reported on Friday. “There will be a meeting of the alliance leaders on 18 and 19 August to exchange views,” Patrick Craven, spokesman for the Congress of South African Trade Unions (Cosatu), was quoted saying. Cosatu and the South African Communist Party (SACP) are the partners in a ruling alliance with the dominant African National Congress (ANC). Opposition to the ANC’s privatisation plans and macroeconomic policies is expected to be high on the agenda. “The Communist Party wants an expanded role for the state and the public sector and wants to slow down privatisation,” said SACP spokesman Mazibuko Jara. Political analysts said the differences between the ANC and its partners over privatisation and other free-market economic policies had intensified in recent months. “I don’t think there is a danger that the alliance could split. I think the meetings will be more focused on what direction the alliance will take,” said Nic Borain, a political analyst at HSBC Securities. Cosatu and the SACP are expected to clash with the ANC over the government’s plans for an initial public offering of telecommunications monopoly Telkom, due in the fourth quarter of this year. The government is determined to get the share offering off the ground this year as rumors of delays in the past have dented confidence in the economy and hurt the vulnerable rand. But Cosatu and the SACP do not want to sell off state assets in telecommunications, energy, electricity and public services because they fear the private sector will not address the needs of the country’s poor majority. “Cosatu and the SACP are worried that privatisation will add to the woes of the poor because delivery will be in private hands,” said Borain.