South African banking stocks rallied on Tuesday, buoyed by optimism that the newly elected leader of the ruling African National Congress will push through policies aimed at putting the economy on a stronger footing.
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South Africa’s Deputy President Cyril Ramaphosa &#8211; a darling of markets &#8211; narrowly beat former cabinet minister Nkosazana Dlamini-Zuma in Monday’s vote, marking a pivotal moment for the party that launched black-majority rule under Nelson Mandela’s leadership 23 years ago.
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As ANC leader, Ramaphosa, a 65-year-old union leader turned businessman, is likely to become the next president after elections in 2019 because of his party’s electoral dominance.
Ratings agency Moody’s said Ramaphosa’s victory opened up tentative prospects of a policy shift and rise in business confidence that “could reverse the gradual deterioration in South Africa’s credit fundamentals.”
Ramaphosa, a former chairman of Africa’s biggest telecoms operator MTN Group, is seen by business leaders as well placed to turn around an economy. South Africa’s GDP is estimated to grow by less than a percent this year, while the unemployment rate is at near records just shy of 28 percent.
In an open letter, Mike Brown, the chief executive of South Africa’s No.4 bank, Nedbank, urged Ramaphosa to immediately address governance failures in state-owned companies and ensure that the country retains the last sovereign investment grade from Moody‘s.
“It is important that we have stable and rational policies, creating an environment that encourages growth for businesses and individuals,” Brown said.

Ramaphosa’s ANC election win lifts South African banks

Geoff Blount | BayHill Capital
This is a win for Cyril Ramaphosa, but given the make-up of the new NEC, this is not necessarily a loss for the Zuma faction within the ANC.
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Markets got this one wrong – and were pricing in a Cyril slate victory, rather than a “hung” NEC. Hence, we expect the rand and the domestic-facing stocks to weaken tomorrow 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.
If people were looking for big changes from this election, which is what markets were hoping for, they will be disappointed. With no clear win for either the Nkosazana Dlamini-Zuma or Cyril Ramaphosa slates, I expect to that the policy paralysis that we have seen will continue until one side “defeats” the other, even post the 2019 elections. This elective conference was a choice to maintain the status quo of the entrenched elite within government, or replace it – so for now it looks like business as usual for government, which will not be perceived by investors, business or the rating agencies positively.
Given the free tertiary education pronouncements by President Zuma over the weekend, coupld with the results of the elective conference, the last standing rating agency will no doubt downgrade our country rating, and the economic challenges we face will continue.

Victory for Ramaphosa, but not a loss for Zuma

South Africa’s rand was slightly weaker in early trade on Tuesday, retreating from a nine-month high notched in the previous session after Cyril Ramaphosa was elected leader of the African National Congress in a vote that will dictate the country’s direction.
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As ANC leader, Ramaphosa, a 65-year-old union leader who became businessman, is likely to become the country’s next president after elections in 2019.
At 0624 GMT, the rand was 0.35 percent weaker against the dollar at 12.8150 rand, largely failing to hold to gains as investors worry about the composition of Ramaphosa leadership team.
“Markets got this one wrong – and were pricing in a Cyril slate victory,” said Geoff Blount, managing director, BayHill Capital.
Ramaphosa narrowly beat Nkosazana Dlamini-Zuma, a fierce campaigner against racial economic inequality, and will have to contend with the former cabinet minister’s allies in his leadership team.
Meanwhile, Ramaphosa has promised to fight rampant corruption and revitalise the economy, a message hailed by foreign investors.
Government bonds opened firmer, with the yield for the benchmark instrument due in 2026 down 4 basis points at 8.815 percent.
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Reporting by Olivia Kumwenda-Mtambo and Tiisetso Motsoeneng; Editing by Sherry Jacob-Phillips
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South African rand drops from nine-month high

Voting for the new leader of South Africa’s ruling ANC ended on Monday about ten hours after delegates began casting ballots for either Deputy President Cyril Ramaphosa or Nkosazana Dlamini-Zuma.
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“Voting for top 6 is done,” said the source, referring to the position of president of the African National Congress and the party’s five other senior posts.
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Reporting by Alexander Winning; Writing by James Macharia; Editing by Ed Cropley
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Voting for ANC Top 6 has been completed. Counting underway

Battle lines were drawn on Monday for South Africa’s ANC as voting began to elect a new leader to succeed President Jacob Zuma as head of a party that has ruled since the end of apartheid but faced scandals and corruption allegations.
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The vote is perhaps the most pivotal moment for the ANC since it launched black-majority rule under Nelson Mandela’s leadership 23 years ago. With scandal and graft accusations having tainted Zuma’s presidency, the party is deeply divided.
Whoever emerges at the helm of the African National Congress, a 105-year-old liberation movement that dominates Africa’s most industrialized economy, is likely to become the country’s next president after elections in 2019.
A total of 4,776 delegates began casting their ballots in the early hours of Monday, the ANC said, to select between Deputy President Cyril Ramaphosa and Zuma’s preferred candidate, his ex-wife and former cabinet minister Nkosazana Dlamini-Zuma.
Voting was still going on at 0530 GMT.
“Delegates are very exhausted,” an ANC source, who is a voting delegate, told Reuters. “I don’t know how they will run today’s sessions.”
Ramaphosa and Dlamini-Zuma were the only candidates nominated for the ANC leadership at a conference in Johannesburg on Sunday night.
In a boost to Ramaphosa, courts ruled that officials from some provinces seen as supporting Dlamini-Zuma had been elected illegally and were barred from the conference.
The rand currency gained after that news on Friday, extending its gains to more than 2 percent on Sunday..
“The rand is stronger on the likelihood of Cyril Ramaphosa being elected ANC head,” said Brett Birkenstock, a director at Overberg Asset Management. “The markets favor Ramaphosa and expect him to improve the economy.”
The currency, which is expected to be volatile until the new ANC leader is announced, had trimmed most of its gains early on Monday to trade steady at 13.0800 to the dollar by 0553 GMT, off an earlier 3-1/2-month high of 12.7300.
A winner had been expected to be announced on Sunday, but long delays led to the vote being pushed back repeatedly.
ANC spokeswoman Khusela Sangoni said voting was expected to be completed by midday and results announced later on Monday.
“The important discussions around policy will get underway this morning and voting will continue on the sidelines of that,” Sangoni told state television SABC. “And that announcement that we are all waiting for will happen am sure in the early part of the afternoon.”
<h3>LOSE RACE</h3>
On Saturday, Zuma announced plans to raise subsidies for tertiary colleges and universities, a move analysts said was timed to appeal to the party’s more populist members allied to Dlamini-Zuma, the first woman nominated as an ANC presidential candidate.
Zuma has faced allegations of corruption since he became head of state in 2009 but has denied any wrongdoing.
Ramaphosa, a former trade union leader who became a businessman and is now one of the richest people in South Africa, has vowed to fight corruption and revitalize the economy, a message hailed by foreign investors.
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Dlamini-Zuma pledged during her campaign to tackle the racial inequality that has persisted since the end of white-minority rule.
Ramaphosa drew the majority of nominations from party branches scattered across the country. But the complexity of the leadership race makes it uncertain he will win the final count.
“The race is extremely close,” said Susan Booysen, a political analyst at the University of Witwatersrand’s School of Governance in Johannesburg.
“Before today we said Dlamini-Zuma could emerge as a winner. Even if there is a strong lead in terms of branch nominations by the Ramaphosa camp, it’s not clear-cut.”
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Additional reporting by Olivia Kumwenda-Mtambo and Ed Stoddard; Writing by James Macharia; Editing by Paul Simao, Clarence Fernandez and Michael Perry
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South Africa’s ANC votes for new leadership

South Africa will raise subsidies to universities to 1 percent of gross domestic product over the next five years from nearly 0.7 percent at present as recommended by a commission on higher education funding, President Jacob Zuma said on Saturday.
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“As a result of this substantial increase in subsidy to universities, there will be no tuition fee increment for students from households earning up to 600,000 rand a year during the 2018 academic year,” Zuma said in a statement.
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Reporting by Olivia Kumwenda-Mtambo; Editing by Paul Tait
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ANC 54th Elective Conference

Ramaphosa’s ANC election win lifts South African banks

Victory for Ramaphosa, but not a loss for Zuma

South African rand drops from nine-month high

Voting for ANC Top 6 has been completed. Counting underway

South Africa’s ANC votes for new leadership

Some South Africa students to get free education: Zuma

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ANC 54th Elective Conference

Ramaphosa’s ANC election win lifts South African banks

Victory for Ramaphosa, but not a loss for Zuma

South African rand drops from nine-month high

Voting for ANC Top 6 has been completed. Counting underway

South Africa’s ANC votes for new leadership

Some South Africa students to get free education: Zuma

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