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EFF decision not to form coalitions creates uncertainty- Economist

Economists have warned that the Economic Freedom Fighter’s (EFF) decision not to form a coalition with the Democratic Alliance (DA) in key metros could create an element of uncertainty.

 

The EFF earlier said it would work with no-one, but would vote with the DA to form minority administrations in the Tshwane and Johannesburg metros.

North West University’s Business School at Potchefstroom Professor Raymond Parsons says key decisions around issues such as municipal budgets will be constantly subjected to long debates as there is no permanent majority.

“From a business and economic perspective, the advent of the so called minority government at a local government takes us to into uncharted waters in terms of the future decisions making at a local level. It injects an additional level of uncertainty into key decisions such as municipal budgets. And indeed local economic development. It means in effect the post polices of some local authorities will be up for constant debate.”

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