This is what the election result means for the rand<\/strong><\/a><\/p>\n
![\"Rand](\"http:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2016\/08\/Rand-trend.png\")
<\/a><\/p>\n“Marikana barely registers at this altitude, nor loadshedding. What we do see, however, is an acceleration of weakness in ZAR from August last year.”<\/p>\n
“This long-run trend was broken by the first Japanese-led flash-crash at that time on 24 August 2015 and things accelerated higher from there through ratings downgrades, ratings watches, a building sense of a low growth\/no jobs growth narrative and problems mounting at parastatals,” the analyst said.<\/p>\n
This was all before Nene-gate, which occurred on 9 December, causing the USD\/ZAR to rise to a peak on 11 January 2016.<\/p>\n
Nomura’s bleak projections for the rand are based on a set fundamentals in the South African economy, which remain unchanged. High unemployment, zero growth, and views that the country faces a likely ratings downgrade in December still persist.<\/p>\n
Read:\u00a0These are the major hurdles still facing the rand in 2016<\/a><\/strong><\/p>\n “These still stand, even after the recent elections. We believe the positive long-run impact of these elections will take too long to affect growth and the vulnerability of the country \u2013 we think the status quo will last too long,” it said.<\/p>\n Previously, Nomura saw an election outcome where the ANC lost power in two metros as a mixed result for South Africa: on the positive side<\/a><\/strong>, it represented a shift in the political landscape that left president Jacob Zuma in a weaker position – seen as positive for investors.<\/p>\n However, on the negative side<\/a><\/strong>, the result has left major metros in hanging, with no clear winner. This will force coalitions between parties with contrasting views and policies, which could create a turbulent economic landscape, moving forward.<\/p>\n Rand hits 10-month high vs the dollar \u2013 R13.35<\/a><\/strong><\/p>\nMore on the rand<\/h3>\n