South African markets experienced a significant rally as investors felt relieved after President Cyril Ramaphosa ended weeks of uncertainty by announcing a new cabinet.
He emphasized that the new cabinet’s primary focus would be on driving economic growth. This move reassured investors about the country’s future direction, instilling confidence that the new leadership would implement policies to stimulate the economy and address financial challenges.
President Cyril Ramaphosa, in a televised address late Sunday, allocated key ministerial positions to business-friendly opposition politicians while retaining his close ally Enoch Godongwana as finance minister. This move is seen as a commitment to maintaining fiscal policies aimed at curbing debt.
The announcement came a month after the African National Congress (ANC) lost its parliamentary majority in the May 29 elections, forcing the party to invite opposition rivals to join a broad coalition government.
Nearly a dozen parties accepted the offer, though the two main left-wing parties were excluded from the coalition.
The African National Congress (ANC) lost its parliamentary majority in the May 29 elections, leading to the party inviting its rivals to form a broad coalition government. Nearly a dozen parties accepted the invitation, though the two main left-wing parties were excluded from the coalition.
The presence of opposition parties in the new administration may help address state ineptitude, power shortages, and logistics bottlenecks that have hindered economic growth and investment. Over the past decade, the gross domestic product has grown by less than 1% per year on average, which is insufficient to sustain living standards for the growing population.
