( 4 minutes read)
· Investors are celebrating the suspension of one of the main party rivals of South African President Cyril Ramaphosa as a sign that he is finally tightening his grip on the party -African National Congress (ANC).
· Investors maintain that the president must move far more quickly on reforms to become bullish on the prospects of Africa’s most industrialized economy
· Ramaphosa has gradually consolidated control over the divided ANC after narrowly winning a leadership contest in December 201
Investors are celebrating the suspension of one of the main party rivals of South African President Cyril Ramaphosa as a sign that he is finally tightening his grip on the party -African National Congress (ANC). However, the investors maintain that the president must move far more quickly on reforms to become bullish on the prospects of Africa’s most industrialized economy.
Ramaphosa has gradually consolidated control over the divided ANC after narrowly winning a leadership contest in December 201. His own sworn enemies were elected to powerful party posts, blocking his reform process. Only last week, he garnered the courage to move against Secretary General Ace Magashule, who has been charged with serious corruption. His allies in the ANC’s national executive sought tougher rules for members charged with serious crimes.
Magashule calls the charges flimsy and fabricated and denied the corruption allegations. However, his suspension clears a major obstacle to Ramaphosa’s bid for re-election as party leader next year. The secretary general oversees the day-to-day running of the ANC and plays a central role in conferences where party posts are won and lost.
Ramaphosa is still facing many hurdles.. The ANC is driven by factions that are in constant flux. Many still remain loyal to Ramaphosa’s scandal-plagued predecessor Jacob Zuma. The COVID-19 pandemic has exacerbated the weak state of public finances. unemployment. is mounting.
It is also a fact that many investors feel Ramaphosa has not delivered on promises to clear policy blockages in sectors such as energy, where red tape still prevents big companies from generating their own power. Hopefully, the president would start asserting from now onwards.
