South Africa Jacob Zuma Update

South Africa Update

8^th August 2017, the day president of South Africa, Jacob Zuma survived a no-confidence vote in parliament, which made sure that he will maintain power of one of the biggest economies in the African continent. It is worth noting that it was the eighth vote of no-confidence that Zuma has survived since being in charge.

About Jacob Zuma

Name:  Jacob Gedleyihlekisa Zuma

Born: 12 April 1942

Birthplace: Nkandla, South Africa

Political part: African National Congress

Jacob Zuma, who has been involved in corruption allegations since being elected as the president of South Africa in 2009, survived the vote by a majority of 198 votes to 177 after the vote was called by the Democratic Alliance party who accused Zuma of suppressing democracy.
 Even though the motion was defeated, it might still have an impact on the party which currently leads South Africa. Unlike the previous no-confidence votes, the latest vote was held anonymously and there were suggestions it could reach 50 votes of no-confidence from the Zuma’s African National Congress party, which is the number required to pass the motion. Instead 24 members of his part voted against their leader, around 12 others refrained or failed to show up to the vote which would suggest further unrest within the party further down the line.
Many have suggested that Zuma will not last until 2019, which is when the next general election takes place.
 

Financial Markets

The South African Rand weakened against the US Dollar after President Jacob Zuma survived a no-confidence which could have ended his administration of the African nation. The decline was a big turnaround for the Rand which was the best performing major currency on earlier in the week. Despite the result, it is unlikely to cause a major weakness as the result was largely priced in before the vote took place.
 

USD/ZAR

By: Klavs Valters
GO Markets