The South African rand strengthened to a two and half years high after Jacob Zuma stepped down. The rand traded at R11.72 Thursday morning as the country prepares itself for the swearing in of Cyril Ramaphosa.
Zuma resigned late Wednesday evening, bring an end to his nine year long tenure, which was laced with strong allegation of corruption and abuse of office. Zuma’s exit sent a cheer to investors, posting a record bullish high in the stock market.
It appears too that once depleted investors confidence has returned to the second biggest
economy in Africa, a Bloomberg analyst observed.
‘While the rand already rallied in anticipation of Zuma’s exit, a recovery in risk assets should propel the currency even higher’, wrote Bloomberg.
There are still challenges in the economic, fiscal and political fronts but it is believed that Zuma’s exit is a panacea.
The pressing challenges now facing Ramaphosa is to return the lost confidence of investors by turning on the positivity that Zuma’s troubled era flamed out.
“2018 could be the year that finally turns South Africa around and sets it on the road to fulfilling its potential” said Craig Kiggen, a regional head at Financial Services Firm, Citadel.