Investors, analysts, economists and politicians are all reacting to the ANC’s decision to elect Cyril Ramaphosa as its next president.<\/p>\n
The market’s reaction to Ramaphosa’s victory was in-line with predictions ahead of the time, which said that the rand would rally against international currencies, as Ramahosa is seen as a market-friendly leader that would focus on economic reform, rather than radical transformation.<\/p>\n
However, despite hitting fresh highs, the rand fell back on Tuesday as the political reality of the situation started to sink in.<\/p>\n
The ANC’s top 6 is now made up of a cross-slate team, where nominees from both the Ramaphosa camp and Nkosazana Dlamini-Zuma camp are present.<\/p>\n
Market bulls see this as a ‘unified’ leadership team that will bring stability to the party, allowing it to forge a clear path forward – while the bears see it as a breeding ground for conflict, where the modernists are likely to clash with the traditionalists, and stunt any chance for progress.<\/p>\n
Here are some of the reactions from investors and other commentators:<\/p>\n
George Herman, chief investment officer at Citadel Investments<\/strong> said that Ramaphosa\u2019s victory has buoyed investor sentiment, but warned that there was still a long way to go to revitalizing South Africa\u2019s faltering economy.<\/p>\n \u201cRamaphosa has a small window of opportunity akin to the famous \u2018100 days\u2019 to prove that he is the catalyst for change needed in government,\u201d Hermand said. \u201cIf he stumbles at any time during this embryonic period, he\u2019ll be seen as a token rather than the strong leader needed and market sentiment will quickly turn against South Africa.\u201d<\/p>\n Geoff Blount, managing director of BayHill Capital<\/strong> had a more muted response, saying that the mixed-slate top 6 means that the ANC\u2019s National Executive Committee (NEC) will be a crucial space to watch.<\/p>\n \u201cMarkets got this one wrong \u2013 they were pricing in a Cyril slate victory, rather than a \u201chung\u201d NEC. Hence, we expect the rand and the domestic-facing stocks to weaken after their recent rally. Some of the euphoria will be repriced out of the market and it will retrace some of its steps as the reality sinks in,\u201d he said.<\/p>\n