Page 8 - Jonathan Katzenellenbogen News Today

The DA is seeking a "Moonshot Pact" of like-minded parties to prevent ANC-EFF coalition - and stop a 'doomsday' scenario in SA.

Party congresses are about putting on a show for the next election and are full of big talk. But the Democratic Alliance (DA) has for long been used to losing at national level, and big talk would have been seen as empty. Back in Progressive Party days, and until recently, the DA did not have a hope of being part of a national government. Things have changed.

Katzenellenbogen looks at the risks facing local banks, including the possibility of a crisis due to a lack of confidence in government.

With worsening power cuts, poor service delivery, low economic growth, high unemployment, and no sense of direction coming from government cutting deep into ANC support, it is almost certain that to stay in power after next year’s national elections, the ANC will have to form a coalition with other parties.

In certain ways all banking crises are the same. There is a run on the bank as depositors rush to withdraw their cash and big lenders refuse to extend any more credit. It is all brought on by an erosion of confidence. While the erosion in confidence might be drawn out, the breaking point is always sudden.

The national shutdown called for by the Economic Freedom Fighters (EFF) on Monday did not bring the country to a standstill. In the end it made the EFF look weak and cast the African National Congress (ANC) and the state in a better light. Security forces maintained relative order and were seen to be on the side of those who were inconvenienced by attempts to stop them going about their business.

All the signs are that there is now a stand-off between government and corporate South Africa, while the business environment deteriorates.

Big business bosses are coming down hard on SA government for its lethargy in responding to the multiple crises we face.

South Africa is drifting into growing isolation from its trading partners and much of the international community.

Eskom nearing bankruptcy and the growing severity of power cuts have forced a change in thinking by the ANC - with concessions now possible.