The leader of South Africa’s second largest political party, the Economic Freedom Fighters (EFF), Julius Malema, has called for the immediate dismissal of Finance Minister Enoch Godongwana, accusing him of mishandling the country’s economic recovery and failing to address rampant corruption. In a statement issued on Tuesday, Malema claimed that Godongwana’s policies were “enriching a corrupt elite” and demanded his removal as a condition for continued coalition support.
The demand comes amid growing unease among British investors, who have privately warned that political instability in South Africa could undermine the country’s attractiveness as an investment destination. A senior London-based fund manager, speaking on condition of anonymity, said: “The noise around the finance minister is deeply concerning. We are seeing capital outflows and a wait-and-see approach from institutional investors.”
The EFF’s call to action follows a series of public spats between Malema and senior African National Congress (ANC) officials, including President Cyril Ramaphosa. The party currently holds 44 seats in the National Assembly and has been a key ally of the ANC since the 2019 elections, but relations have frayed over the government’s response to economic stagnation and state capture reforms.
Political analysts suggest that Malema’s gambit is aimed at positioning the EFF as a credible alternative ahead of the 2024 general elections, rather than a genuine attempt to improve governance. However, the timing is precarious: South Africa is grappling with record unemployment, rolling power cuts, and a weak rand.
British investors, who account for a significant share of foreign direct investment in the country, are particularly sensitive to political turmoil. The South African Chamber of Commerce in London noted that enquiries from members had increased by 30% in the past month, with many seeking reassurances about the rule of law and policy consistency.
In response, Godongwana dismissed Malema’s call as “political grandstanding” and reiterated his commitment to fiscal discipline. “We are not going to be distracted by theatrics,” he told reporters in Pretoria. The ANC has yet to issue an official statement, but sources within the party indicate that Ramaphosa is unlikely to bow to Malema’s demands, fearing a loss of credibility.
The standoff highlights the fragility of South Africa’s coalition politics and the broader challenge of balancing populist demands with investor confidence. As the situation develops, the risk of further ructions in the markets remains high.
This is a developing story. For the latest updates, stay with the BBC.
