The ANC would disregard ratings agencies’ advice and call for an increase in mining taxes, it was reported on Thursday.

Moody’s and Standard & Poor’s have downgraded South Africa’s debt, citing slower economic growth, after the worst mining strikes since the end of apartheid and political pressure to raise spending.

Enoch Godongwana, the head of policy in the ANC, said: “We’re kind of in a Catch-22 situation because there are people who listen to Moody’s, and when we go out there and raise money it becomes expensive. We may take a hit”

He told Business Day, South Africa’s leading business daily, that the ANC would have to make a choice.

“We will have to decide whether we please Standard and Poor’s and Moody’s, or do we deal with the kind of constituencies we are facing? We’re walking that tightrope.”

Godongwana made these comments a day after Moody’s changed the South African banking system outlook to negative from stable.

Ventures Africa reported that this could trigger a widespread backlash in South Africa as many in that country have often been told that their banks were stable after they managed to withstand the rigours of the 2007/8 recession.

While Godongwana ruled out the ANC conference agreeing to any form of mine nationalisation, he said increased taxes on mining were possible.

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