Markets responded positively to President Cyril Ramaphosa’s cabinet announcement, resulting in a strengthened rand on Monday morning.
Also read: Ramaphosa introduces new GNU Cabinet for second term
Ramaphosa announced the new executive for his Government of National Unity (GNU) after two weeks of uncertainty late Sunday evening.
On Monday morning, the rand traded at these levels against major currencies:
- ZAR/USD: R17.97 (-1.10%)
- ZAR/GBP: R22.75 (-0.96%)
- ZAR/EUR: R19.32 (-0.77%)
As reported by BusinessTech, the GNU’s make-up was seen as more business-friendly and pro-reform thanks to the African National Congress’s (ANC) new partnership with the Democratic Alliance (DA), the Inkatha Freedom Party (IFP) and others.
According to Business Leadership South Africa Chief Executive Busi Mavuso, the new administration will find goodwill locally and internationally.
‘There has already been a vote of confidence from investors, and the finalisation of the GNU will support that. Business is looking forward to working with the new administration to deliver – we are fully aligned with the President’s agenda to drive economic growth.’
Unleash your inner explorer with these incredible car deals, all priced under R100 000. Find car listings here.
Business Unity South Africa (BUSA) says the announcement signalled that South African leaders are now ‘ready to put aside their party-political differences and tackle the social and economic development tasks at hand, in the national interest.’
BUSA noted that although not everyone is happy with the new appointments, South Africans need to support the new administration so that it can urgently ‘implement practical, evidence-based policies that will deliver sustainable, inclusive economic development, job creation, investment, and social development.’
The group added that the new government should create an enabling business environment to attract foreign investment, build on public-private partnerships and get public finances under control.
‘It is crucial that we continue to prioritise bringing public finances under control in line with the fiscal consolidation measures outlined in the 2023 Budget.’
Cape {town} Etc discount: Looking for things to do in the city at half the price? Get exclusive offers here.
Also read:
South African rand slides amid ANC-DA rift over cabinet posts
Picture: ER Lombard / Gallo Images