South Africa’s Economy Negatively Affected Following Release of Phala Phala Report, Warns Economists

• The Phala Phala report compiled by Parliament’s Section 89 panel has had serious ramifications on South Africa’s economy
• Since the release of the report that implicates President Cyril Ramaphosa, the dollar-rand cross jumped by as much as 4.4%
• Michael Kafe and Andreas Kolbe of Barclays Bank believe that if the president were to resign, it would negatively affect the markets

JOHANNESBURG- President Cyril Ramaphosa’s Phala Phala scandal has caused serious effects on the country’s economy.

It was found that the president may have violated the Constitution and the country’s law over the theft of millions in foreign currency. Since the release of Parliament’s Section 89 panel’s decision, the dollar-rand cross jumped by as much as 4.4%.

According to News24, the increase is the most significant experienced since March 2020 at the height of the Covid-19 lockdown. Michael Kafe and Andreas Kolbe of Barclays Bank told the publication that it would negatively affect the markets if the president were to resign.

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Cyril Ramaphosa's allies plan to protect him at ANC NEC meeting, says “He is more popular than the party”

It is still unclear what Ramaphosa will decide following the release of the Phala Phala report. However, members of the African National Congress and his allies have convinced him to hold off on making a decision.

Meanwhile, political writer and commentator Dr Ebrahim Harvey said Ramaphosa’s term in office has been more damaging than his predecessors. During an interview with Cape Talk, Harvey said the president “messed up” in every aspect.

The commentator said Ramaphosa’s rumoured resignation leaves South Africans with very few credible candidates to take the reins. He added that it is a case of the ‘devil you know is better than the one you know even better.

Citizens react to the state of the economy:

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Minister in the Presidency Mondli Gungubele confident that Cyril Ramaphosa will respect the law

@MondliNtuli_ZN said:

“No worries, let the rand fall I know someone who will pick it up.”

@DavidWolpertZA commented:

“The consensus seems to be that SA needs him- why? Even now he’s indecisive, he’s achieved almost nothing, SA has regressed badly, and his hands are not clean. So how desperate are we?”

@Bonganih15 posted:

“Whether the Rand collapses or not Ramaphosa is going to resign we don’t need him anymore.”

@Future_COO wrote:

“We don’t need this kind of stress in December, please.”

@ItsRadebe added:

“So the rand supports violating the Constitution? We learn every day.”

Cyril Ramaphosa’s allies plan to protect him at ANC NEC meeting, says “He is more popular than the party”

Briefly News also reported that President Cyril Ramaphosa’s allies are attempting to protect the nation’s leader by any means necessary, much to the dismay of some citizens.

On Friday, 2 December, members of the African National Congress national executive committee (NEC) are expected to meet to determine a way forward following the Section 89 panel’s findings.

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EFF's Mbuyiseni Ndlozi says Cyril Ramaphosa and his allies must fall amid release of Phala Phala report

The independent committee found that Ramaphosa may have violated the Constitution and the country’s laws. The president was expected to announce his resignation.

Source: Briefly News