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CAPE TOWN , June 15 (Xinhua) -- South Africa's ruling African National Congress (ANC) on Sunday voiced concern over a protracted strike in the platinum sector.


"The impact of the platinum belt is quite significant. Not only were we feeling the pressure in the domestic economy, quite clearly the outside world, including the foreign investors," ANC national spokesperson Zizi Kodwa said.


He was speaking after two international rating firms downgraded South Africa's rating last week.


Fitch on Friday revised the country's economic outlook from "stable" to "negative", while Standard and Poor lowered South Africa's long-term foreign currency credit rating one notch , to triple-B-minus from triple-B.


Both agencies said their concerns about South Africa's economic growth arise partly from the strike that has affected part of the mining sector.


The strike, which has been dragging on for five months, has hard hit the country's platinum production, causing a revenue loss of more than 22.6 billion rand (about 1.23 billion U.S. dollars) as of Sunday.


Partly due to the strike, South Africa's gross domestic product (GDP) contracted by 0.6 percent in the first quarter of this year , the first decline since the 2009 recession.


Kodwa said both rating agencies are concerned about the fall in South Africa's economic growth in the first quarter of 2014, as well as the on-going platinum strike.


"But I think what the strike has done, given that it has taken too long, it has created a perception," Kodwa said.


"I think if you look at both agencies , the Standard and Poor, and also Fitch, they do make reference to the strike. Its impact and the perception it has created," he said in a statement.


Kodwa said the ANC calls on South Africans to work with the government to help strengthen the economy.


As Kodwa spoke, the platinum producers and the Association of Mineworkers and Construction Union (AMCU) were making the last- ditch effort to reach common ground in a bid to end the strike.


AMCU President Joseph Mathunjwa was upbeat about reaching a solution , saying the strike could come to an end soon after the producers offered a new wage offer.


Mathunjwa was busy in the past few days, taking the offer to AMCU members to get their approval.


He was meeting with the management at Anglo American Platinum, Impala Platinum and Lonmin Plc over the weekend to relay the response of his miners to their offer.


The offer, among others, agrees to an annual increase of 1 ,000 rand (about 94 U.S. dollars) per month in basic pay for A- and B- band employees for two years and 950 rand (about 90 dollars) thereafter.



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