Rand would decline under Dlamini-Zuma – Economist

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ANC presidency hopefuls Nkosazana Dlamini Zuma and Cyril Ramaphosa. Picture: Simphiwe Mbokazi
ANC presidency hopefuls Nkosazana Dlamini Zuma and Cyril Ramaphosa. Picture: Simphiwe Mbokazi
FILE - In this Wednesday, July 5, 2017 file photo former African Union Chairperson, Nkosazana Dlamini-Zuma, attends a ruling-party policy conference in Johannesburg, South Africa. As the African National Congress meets this weekend to choose a successor to scandal-ridden President Jacob Zuma, the race between his deputy and ex-wife, Dlamini-Zuma threatens to split Nelson Mandela's legacy. (AP Photo/Themba Hadebe, File)
FILE – In this Wednesday, July 5, 2017 file photo former African Union Chairperson, Nkosazana Dlamini-Zuma, attends a ruling-party policy conference in Johannesburg, South Africa. As the African National Congress meets this weekend to choose a successor to scandal-ridden President Jacob Zuma, the race between his deputy and ex-wife, Dlamini-Zuma threatens to split Nelson Mandela’s legacy. (AP Photo/Themba Hadebe, File)

JOHANNESBURG –  On Friday morning, news reports suggesting that President Jacob Zuma had provided key members of the ANC with a list of requirements if he were to step down, surfaced. 

The Mail & Guardian reported that Jacob Zuma was pushing for former AU Chairperson, Nkosazana Dlamini-Zuma to take over as the country’s interim president, should Zuma step down. 

Reports indicate that ANC president, Cyril Ramaphosa, has since rejected the recommendation.

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Ramaphosa reportedly favours Human Settlements Minister, Lindiwe Sisulu and National Assembly Speaker Baleka Mbete, over Dlamini-Zuma. 

The publication also reported that Zuma allegedly requested that key members within his cabinet stay in power and become a part of Ramaphosa’s team. This would include Energy Minister, David Mahlobo and State Security Minister, Bongani Bongo.

TOP STORY: Jacob Zuma’s list of demands if he steps down – Report

Earlier this week, after rumours that Zuma would step down surfaced, the rand strengthened – touching its highest level in two sessions.

Economist and Head of Business Development at Bravura, Ian Matthews said there would be a negative impact on the rand should Nkosazana Dlamini-Zuma be appointed interim-President. 

“With so much expectation for clear leadership, most people are hoping for a firm direction and a clear mandate for the country. Dlamini-Zuma does not have a clear mandate”, said Matthews. 

In simple words, “the rand would be hurt; the country would reach a deadlock and this will affect a number of things.”

Taking into consideration the fact that South-Africa is waiting to receive a credit rating by ratings agency, Moody’s next month, “the country’s rating may also take a knock,”  said Matthews. 

“If Cyril is appointed as the new President, there will be a clear indication by government and a clear mandate.Then, the country will have a positive outlook and be able to move forward.”

The rand has since made gains of 8% due to investor confidence in Deputy President, Cyril Ramaphosa’s business-friendly policies.

– BUSINESS REPORT ONLINE 

Source: IOL – Business News
Rand would decline under Dlamini-Zuma – Economist


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