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Rand weakens as Zuma survives no-confidence vote

Hope of new ANC leadership turning the economy around has been dashed.

The rand tumbled after President Jacob Zuma survived a bid by opposition lawmakers to oust him, crushing the prospect of a new leadership reviving the country’s economy.

The currency slumped as much as 1.2% before paring the decline to trade 0.8% weaker at 13.3374 per dollar by 12:46 pm in New York.

The ruling African National Congress defeated an eighth attempt in Parliament to remove Zuma, whose eight-year rule has been mired in allegations of corruption and mismanagement that weighed on investor sentiment, reduced the country’s credit ratings to junk and sent the economy into recession.

“Expect both the rand and bonds to give back all of yesterday’s gains and end a little weaker than where they opened today,” Isaah Mhlanga, an economist at Rand Merchant Bank in Johannesburg, wrote in a note to clients before the ballot. The concern now is that Zuma “might be able to stretch his reign until 2019,” he said.

© 2017 Bloomberg L.P


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The ANC parliamentarian choice of axing oneself by ousting JZ weighted to heavily on the cadres of JZ. Those who share in the spoils knew that by voting against JZ they themselves would most probably have lost their job in a cabinet reshuffle that surely would have followed.
On the other hand, the good ANC cadres that do an honest and proper job had nothing to fear. The majority ANC cadres though certainly had their livelihood to fear and therefor backed the head of the corruption regime.
It took ignorant politicians in Zimbabwe 20 years (from 1980 to 2000) to collapse the beloved country into national poverty and total chaos. Seventeen years later and Zimbabwe is in an even deeper pit of despair and unable to turn the country around.

The progression in South Africa is unfortunately heading the exact same way. It took JZ only eight years to wipe out all the financial reserves of the S.A. government and all the positive attributes that Nelson Mandela, Thabo Mbeki, Trevor Manuel and others has build up in the first 14 years of our democracy (1994 to 2008). The government and most of the SOE’s are literally bankrupt already. The ANC will bear the same etiquette than Zanu PF does.

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ZAR / Euro



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