South Africa: Who Ramaphosa Picks for Cabinet Will Determine Rand's Direction By Bloomberg
Ramaphosa will be inaugurated on May 25 and is expected to announce his new executive by May 27. He faces the challenge of establishing a more streamlined administration free of ministers tainted by graft and able to implement tough economic reforms. A misstep on key appointments could fell the rand, which has outpaced the emerging-market average appreciation since the May 8 election.
South Africa’s currency has gained 1.3% to 14.2447 per dollar since the poll, and may extend its advance to 13.20 per dollar by year-end provided the new cabinet inspires confidence among investors, according to Morgan Stanley. The options market is giving a one-in-two chance of reaching that level, according to Bloomberg’s probability calculator.
“We are keen to see whether some ministries could be consolidated to give a lower overall number of cabinet posts,” Morgan Stanley strategists including Hans Redeker, James Lord and Sheena Shah wrote in a note to clients. “This would be positive for streamlining policy and an indication of Ramaphosa’s growing authority within the ANC.”
Investors want clarity on the positions of Finance Minister Tito Mboweni and Public Enterprises Minister Pravin Gordhan, or potential replacements should either of them step down, the strategists said.A poll conducted by Citigoup Inc. on May 14 found that less than 50% of respondents expected Ramaphosa to appoint reform-minded ministers, but most believed he would cut its size. In this scenario, assets would not rally.
An internal report by the ANC in February recommended that Ramaphosa slash his cabinet by close to half. The move would reduce the executive inherited from Jacob Zuma to 40 from 72, with 25 ministers and 15 deputy ministers. The presidency said the reconfiguration plan would be announced before any cabinet appointments. DM
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Eyes on Ramaphosa's Cabinet picks after ANC elections winPresident Cyril Ramaphosa is expected to announce a greatly reduced team after he is elected as president by the National Assembly next week Wednesday.
Read more »
Rand stable for now, but could be affected by new Cabinet - economistElectionResults: Rand stable for now, but could be affected by new Cabinet, says economist
Read more »
Ramaphosa has full ANC backing to shrink CabinetPresident Cyril Ramaphosa has the full backing of the African National Congress to reduce the size of the cabinet after the elections, according to Fikile Mbalula.
Read more »
With a Cabinet cut, Ramaphosa could launch a real ‘new dawn’But one of his opponents is party secretary-general Ace Magashule, who testily said yesterday that Ramaphosa was not the reason the party won the election.
Read more »
ANCWL wants equal representation of women in Ramaphosa’s new CabinetThe call came as the ANC on Saturday finalised its selection of premier candidates, as the party is set to retain eight provinces following elections.
Read more »
‘Zuma ministers’ now panicking as Ramaphosa eyes smaller cabinet and clean-upThe Sunday Times reports that mass resignations may now be looming as the president eyes appointing the smallest cabinet in SA history.
Read more »
Ramaphosa expected to trim new CabinetCabinet has long been criticised for being too fat and bloated.
Read more »
Magashule: ANC NEC won’t deal with elections outcome or Ramaphosa’s new CabinetANC secretary-general Ace Magashule said the meeting of the ANC structure would focus on premiers for the eight provinces.
Read more »
Ramaphosa expected to trim CabinetThe ANC will have fewer seats in South Africa's sixth parliament.
Read more »
Ramaphosa's big task: Name a lean Cabinet without worsening ANC divisionsThe pressure is on President Cyril Ramaphosa to unveil a downsized Cabinet, possibly of around 30 ministries, to signal that government is serious about cutting spending.
Read more »