South African stocks, rand gain after ruling ANC, DA reach deal

BREAKING NEWSJune 16, 2024 at 9:19 PM UTC

TLDR

South African stocks surge and rand strengthens as investors support Cyril Ramaphosa's reelection agreement.
Coalition government between ANC and Democratic Alliance set to lead following ANC's failure to secure outright majority.
Ramaphosa's ANC engages in extensive negotiations with rival political parties after historic election results.

South African stocks surged and the rand strengthened, bucking the global trend of risk asset selloffs, as investors welcomed an agreement between rival political parties to support the reelection of Cyril Ramaphosa as president.

The deal paves the way for a coalition government led by the African National Congress (ANC) and the business-friendly Democratic Alliance, following an election where the ANC failed to secure an outright majority for the first time in history.

Ramaphosa's ANC, which came into power in 1994 after decades of fighting apartheid, engaged in extensive negotiations with other parties over two weeks. The president called the deal a “new birth, a new era for our country” and said it was time for parties “to overcome their differences and to work together”.

Key Takeaways

The agreement marks a significant shift for South Africa, a country where politics has been largely dominated by the ANC since its historic 1994 election victory that ended apartheid. Nelson Mandela's party, once considered unbeatable in national elections, has seen declining support in recent years due to ongoing challenges such as high poverty rates, inequality, crime, frequent power outages, and corruption within the party. Cyril Ramaphosa, set to be sworn in next week in Pretoria, will soon announce his new cabinet.

ANC

South Africa

African National Congress

Cyril Ramaphosa

Elections

Economy

Investments

Finance