Rand loses ground as ANC leaders backtrack on Zuma opposition
The rand lost 1.6% against the US dollar on Wednesday morning after ANC secretary general Gwede Mantashe backtracked on his opposition to president Jacob Zuma’s recent cabinet reshuffle, and endorsed the entire process on behalf of the party.
By 11h30, the rand was trading at R13.75 to the dollar, having opened trade at R13.54. The rand experienced a recovery on Tuesday after many of the ANC leaders and alliance partners came out in opposition to the president, sparking hope among investors that Zuma would face an internal battle within the party.
However these hopes were dashed on Wednesday, when Mantashe marched out to brief the media on the outcomes of a National Working Committee meeting, where Zuma scored an apparent victory over his critics.
The urgent meeting was called to discuss recent issues within the ANC and the country, including the call for the resignation of President Jacob Zuma, and the reasons why finance minister Pravin Gordhan was fired.
“The events that followed after the axing of finance minister Gordhan has caused concern and undue confusion,” Mantashe said.
However, the SG said that the NWC were given the reasons given for the axing of Gordhan, highlighting that it was “unfortunate” that the intelligence report was put front and centre as the reason for Gordhan’s removal, when the official reason behind the removal was a breakdown of the relationship between the minister and the president.
“This was worsened by ANC officials who went public to the media, separate from the ANC, about their disagreements and to express this discomfort with the president to the media”.
Mantashe called this move by Zuma opponents – including himself – a “mistake” and said it would not happen again.
The SG said that the party would also meet with its alliance partners, Cosatu and the SACP – both of which have publicly called for Zuma to resign – to discuss the outcomes of the meeting.
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