Ramaphosa Elected President Of ANC: South African Rand Soars 4%, Biggest Jump In 2 Years

Update 2: It's all over, and the best case outcome is now fact, with Cyril Ramaphosa elected president of South Africa’s ruling African National Congress on Monday.

  • CYRIL RAMAPHOSA ELECTED PRESIDENT OF SOUTH AFRICA'S ANC
  • RAMAPHOSA GETS 2440 VOTES IN S.AFRICA'S ANC LEADERSHIP VOTE

Ramaphosa victory threatens President Jacob Zuma’s grip on power after the most divisive vote in the party’s history. Ramaphosa, the deputy president, defeated Nkosazana Dlamini-Zuma, Zuma’s former wife, whom the president had backed. As the FT notes, it is widely speculated that Mr Zuma lent Ms Dlamini-Zuma his support because he believed that as state president she would protect him from prosecution in a corruption case.

Meanwhile, Ramaphosa campaigned on a promise to root out corruption and save the ANC from losing its majority for the first time at the 2019 election.

During his campaign, Ramaphosa made thinly veiled attacks on Mr Zuma’s relationship with the Gupta family, who are accused of using their friendship with the president to influence cabinet appointments and state business, and promised to root out corrupt ANC officials. Mr Zuma and the Guptas have denied allegations of corruption.

As charted below, the South African rand surged against the US dollar on the announcement of Mr Ramaphosa’s victory, higher by more than 4% on the day, its biggest one day gain in over two years. 

“The country outside the 5,000 ANC delegates has breathed a huge sigh of relief,” said Lawson Naidoo, executive secretary of the Council for the Advancement of the South African Constitution, which has campaigned against the perceived attack on independent institutions under Mr Zuma. “We can now put a break on the downward slide of South African politics and economics,” he said.

Ramaphosa, a former union leader who used his ANC ties to become one of South Africa’s richest black businessmen in the post-apartheid period, was seen as the candidate most able to unite business and the government to reignite the economy, which has ground to a halt under Mr Zuma.

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Update: not so fast - according to News 24, a recount for the ANC presidency is underway, adding that "NDZ's camp insisted on recount after she lost the vote, they say. That may cause the delay in announcement."

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The South African currency and local equities soared on Monday amid investor hopes that pro-reform candidate Cyril Ramaphosa has won a victory in the ruling ANC’s leadership contest. While the South African Rand suffered a bumpy start to the day as it became clear that the vote would go down to the wire, shedding all of its early gains. The ZAR has since soared, enjoying its biggest one-day gain in over two years, as ANC chief whip Jackson Mthembu told journalists he was confident Ramaphosa had a clear majority.

With official results expected shortly, the rand is now over 4% higher on the day, rising as high as 12.56 against the dollar.

The rand's ascent accelerated following Reuters headlines suggesting that Ramaphosa appeared a near-certain winner:

  • ANC LEADERSHIP CANDIDATE RAMAPHOSA GRINNING ON STAGE, HUGGING SENIOR ANC OFFICIALS - REUTERS WITNESS
  • SOUTH AFRICA'S ANC CHAIRWOMAN SAYS "THE ANNOUNCEMENT WILL BE IN FIVE TO TEN MINUTES"
  • ANC LEADERSHIP CANDIDATE DLAMINI-ZUMA SITTING CALMLY ON SEAT - REUTERS WITNESS
  • ANC DELEGATES BREAK OUT IN SONG AND DANCE BEFORE EXPECTED LEADERSHIP ANNOUNCEMENT

In addition to the currency, the country’s government bonds also gained, with yields on 10-year debt sliding 21.6 bps to 8.914%. Meanwhile, among stocks, banks were the biggest beneficiaries on South Africa’s equity markets, with the FTSE Johanessburg Stock Exchange index of bank stocks rising 6.6% to the highest level on record.

Readers can watch a live stream of the ANC's 54th national election here.

Comments

Global Hunter Mon, 12/18/2017 - 11:25 Permalink

Any South Africans or people with knowledge correct me if I'm wrong but does "pro-reform ANC leadership candidate" mean he just wants to genocide whites by slow attrition rather than hacking them to death quickly?

CPL Antifaschistische Mon, 12/18/2017 - 14:56 Permalink

Don't think about it too much and just sit back and watch it blow up in their faces.  Remember none of them have a clue whats actually going on and that's to everyone's benefit while they jump into scripted dead ends that look like solutions.  But aren't.  By july it'll be fairly obvious to everyone how they've killed themselves off in hindsight so just stand back and let it happen.  Keep the hands clean and cross your legs.

In reply to by Antifaschistische

adr Mon, 12/18/2017 - 11:36 Permalink

That the Rand is worth anything is the surprise.Let's see what happens when the last of the rich Jews leaves. I'm thinking you'll be able to buy 1 Trillion Rand notes for $1 on Ebay.Hollywood wants you to believe that black people in Africa are capable of this:https://www.youtube.com/watch?v=xjDjIWPwcPUYeah I know it's a superhero fantasy, but it really makes me laugh out loud. Yep, the tribal spearchuckers built a society hundreds of years more advanced than the rest of the planet. Even Tony Stark is light years behind. 

BritBob Mon, 12/18/2017 - 11:43 Permalink

The regime in South Africa needs to be 'business friendly' to create wealth and emplyment opportunities. Then and only then will there be scope for social reforms. Otherwise they'll end up like Zimbabwe.

pods Mon, 12/18/2017 - 11:44 Permalink

I'm surprised S. Africa is still around. How many more years until there are warlords fighting over the last of their gold deposits?I'm sure they will be able to run the world's deepest mine once all the property has been re-appropriated to their friends in the name of fairness for appartheid.pods

Peak Finance Mon, 12/18/2017 - 11:48 Permalink

Hey, these guys still dumping shit into the rivers and pocketing the wastewater treatment money???That will end well. Waiting for the next outbreakof course, aftetr the outbreak,  there will be stupid marathons showing dumb Africans with cholera begging for dough, eternal "victim" but never mentioning their wastewater treatment money is stolen.  

hanekhw Mon, 12/18/2017 - 12:06 Permalink

The American media has been absolutely silent about the ten deaths in the past week within the voting delegates in SA due to political violence to settle the 'ANC's' leadership question. The ANC isn't so much political as it is criminal.

Kagemusho Mon, 12/18/2017 - 12:18 Permalink

The Chinese seek to take over Africa's resources, courtesy of 'foreign aid' and infrastructure projects, and are not impressed.Asian tells Africans they are stupid for destroying what White people built and for learning nothing https://www.youtube.com/watch?v=3LhSjLNyM-sGiven China's actions in colonizing Tibet, the Africans may wish that they had stuck with the Whites, after all. The neoliberal plague does not infect Chinese society as it has Western countries.

Ace006 Mon, 12/18/2017 - 12:28 Permalink

The operative word in these proceedings being "comrade."And wasn't that slogan in part about "radical socio-economic transformation."  What will the slogan be when white businesses have been driven out or destroyed?  The marxist definition of success.

Disgruntled Goat Mon, 12/18/2017 - 13:11 Permalink

Thats funny, "root out corruption" ... I used to laugh when I saw these fat, self important African diplomats walking around in Europe .... many with multiple pens visible in their breast pockets, a subtle power signal to their uneducated countrymen that they themselves could actually read and write

Disgruntled Goat Mon, 12/18/2017 - 13:11 Permalink

Thats funny, "root out corruption" ... I used to laugh when I saw these fat, self important African diplomats walking around in Europe .... many with multiple pens visible in their breast pockets, a subtle power signal to their uneducated countrymen that they themselves could actually read and write

RagnarRedux Mon, 12/18/2017 - 13:41 Permalink

South Africa: Official Zulu King Says Blacks Are Destroying Everything"The official king of South Africa’s Zulu tribe has announced that that country was economically, militarily, and socially better under white Afrikaner rule—and that history will judge blacks as only having destroyed everything that they had inherited from the white government."http://newobserveronline.com/zulu-king-blacks-destroying-south-africa/h…South Africa: 1-In-3 South African Men Admit To Rapehttps://www.cbsnews.com/news/study-over-1-in-3-safrican-men-admit-to-ra…BBC: 90% Of Black Owned South African Farms Are Failinghttp://news.bbc.co.uk/2/hi/africa/8547621.stmBBC: Black South African Says Life Was Better Under White Governmenthttps://www.youtube.com/watch?v=j4f0INWfws0

Easyp Mon, 12/18/2017 - 15:34 Permalink

Can someone explain to me how an ex union leader can become one of Africa's richest businessman in 20 years?  I am guessing this could only happen in Africa?

Lucky Leprachaun Mon, 12/18/2017 - 15:54 Permalink

Makes little difference. Africans, and I know this from working extensivley there, have the Cargo Cult mentality. That is they don't really associate material goods with the initiative investment and work required to make them. The just assume the desirable stuff is there and they want their share. Nothing much will change, mark my words.