The Rand is currently stable ahead of the upcoming ANC leader elections to be held at Mangaung from 16 to 20 December.
Brigid Taylor, head of institutional sales at Nedbank infers the stability of the Rand to be a direct result of the high chance of an upcoming Jacob Zuma victory. ”For now the market has had its expectations managed with regards to the fact that Zuma and Ramaphosa will probably take the ANC to elections in 2014,” she said.
With five out of SA’s nine provinces formally backing Jacob Zuma, It is highly probable – although by no means certain – that Zuma will be re-elected.This stability may be short lived however.
The managing director of the Banking Association of South Africa, Cas Coovadia, has cast doubt on the long term success of the economy under the ANC, in particular the stability of the banking industry: ”The bottom line is, if (the ANC) take incorrect decisions on mining, land and agriculture, it has an impact on us.”
Enoch Godongwana, head of economic policy in the ANC, agrees that policy should be at the centre of the party conference’s discussions “However, it does not necessarily mean we will make decisions that necessarily make banks happy.”