Markets have reacted negatively to the findings of the Independent Panel of Experts against President Cyril Ramaphosa. The Rand fell by more than 1% but recovered some ground in morning trade.
Investors’ primary focus is on whether these developments combined with the elective conference will in anyway derail the reform agenda that has seen a whole mark of the president’s tenure. Any relapse in institutional re- building as well as macro- economic reform will come at a great cost in terms of dampening investor sentiments, as well as investments by local participants may seize and off course given that South Africa is already locked in a low growth environment ant curtailment will be harmful.
A short while ago, the rand is trading at 17-rand-32 to the dollar, 21-rand-3-cents to pound sterling and 18-rand-7-cents to the euro. The euro was trading at one-dollar, and the dollar is at 136-point-five-two Japanese yen. The Section 89The panel has found that Ramaphosa may have contravened the constitution and violated his oath of office. Economist Goolam Balim says investors are concerned about Ramaphosa’s future as head of state in light of the Phala Phala saga.
Section 89 Panel Report | President Ramaphosa has case to answer on Phala Phala: John Steenhuisen
Analysis into release of the Section 89 panel report on the Phala Phala saga: