Impact of South Africa's greylist exit on politics and economy

Contrasting perspectives on significance of the delisting

- MASHUDU SADIKE

SOUTH Africa's removal from the Financial Action Task Force (FATF) greylist has elicited sharply contrasting reactions within the nation’s political sphere.

While the ANC hails this as a major achievement, the uMkhonto weSizwe Party (MK Party) has adopted a guarded, even critical, stance.

The ANG, in a statement brimming with optimism, hailed the announcement as a “direct outcome of decisive and coordinated action” across various government entities and the financial sector.

“South Africa’s removal from the greylist is a vote of confidence in our country's reform agenda and in our determination to ensure accountability, transparency, and ethical governance,” the party wrote in a statement.

The ANC emphasised that the fight against corruption and illicit financial flows must remain a national priority to safeguard democracy and ensure public resources benefit all citizens.

However, the MK Party viewed the development with “great caution’, rejecting any notion of it being a “panacea to our ongoing struggle against financial crimes and corruption”.

Its statement asserted that “much more still needs to be done to confront the deep-rooted challenges that continue to enable illicit financial flows and criminal activities in our country”.

The MK Party’s skepticism is rooted in several critical concerns.

It pointedly questioned the removal while linking it to allegations surrounding President Cyril Ramaphosa’s Phala Phala farm incident, where he was reportedly found in possession of undeclared foreign currency.