Ace Magashule's suspension improves investor confidence in South Africa
- Investors were happy with the recent suspension of ANC secretary-general Ace Magashule
- The rand rallied against other currencies since Magashule's suspension
- The recent events are being seen by overseas investors as President Cyril Ramaphosa consolidation of his power with the ANC
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Critics of Ace Magashule are not the only ones celebrating his suspension. Investors are delighted that the secretary-general has been suspended from the ruling party.
Reuters reported that the rand rallied on the news that Magashule had been suspended. Other factors contributed to the improvement of the rand against other currencies such as the National Treasury reducing debt issuance.
Source: Getty Images
The secretary-general's suspension is cited as a key factor in the rand's performance recently.
However, if President Cyril Ramaphosa wants international investors to get behind brand South Africa he needs to increase his pace of reform.
Since his election to president of the ruling party, Ramaphosa has been consolidating his grip on the ANC.
According to Times Live, Magashule's suspension removes an obstacle to Ramaphosa being re-elected as president of the ANC.
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Earlier, Briefly News reported that South African Twitter user Daniel Marven recently shared a clip of suspended ANC secretary-general, Ace Magashule very energetically punching a punching bag while dressed in his formal clothes.
The video left many South Africans with truly funny things to say about Ace who recently lost his battle to step aside as an ANC member. A lot of them thought that the clip was a way of Ace saying that he would not apologise to President Cyril Ramaphosa for writing him a suspension letter.
In other news, African National Congress (ANC) deputy secretary-general Jessie Duarte came forward to clear the air on claims that the party has run out of money, saying that the ruling party is not broke, they are just having some cash flow issues.
It was on Tuesday, 11 May that Duarte said sponsors have gone quiet since the Party Funding Act came into effect at the end of April, which requires that sponsors' names are made public. Apparently, sponsors do not want to be identified as they believe it will tarnish their reputations in the business world.
“So, they don’t want to be known that they fund the ANC and they believe that it might be bad for business.”
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Source: Briefly News
