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.

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 

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