South Africa's ANC loses its 30-year majority in landmark election
TLDR
- ANC loses parliamentary majority in South Africa's recent general election, securing 159 out of 400 seats.
- President Cyril Ramaphosa calls for collaboration among parties for the country's progress.
- ANC will need to form coalition partnerships to govern effectively in the new parliament.
The African National Congress (ANC), the party that has dominated South African politics since the end of apartheid, has lost its parliamentary majority for the first time in three decades. Final results from last week's general election showed the ANC securing 159 seats in the 400-seat parliament.
Despite remaining the largest party, this is a significant setback, as the ANC had previously held an overwhelming majority. President Cyril Ramaphosa, addressing the situation, emphasized the need for all parties to collaborate for the country's benefit.
The new parliament will convene in 14 days, and while traditionally this is when the president is elected, the process may take a bit longer with the new dynamics in place. The ANC will now need to form coalition partnerships to govern effectively.
Key Takeaways
Investors are preparing for further volatility in South Africa's financial markets following an election that resulted in no clear winner. The uncertainty surrounding coalition talks and future policy directions has heightened market tension. On Monday, the rand showed increased volatility, briefly reaching levels last seen in September. By 11:53 a.m. in Johannesburg, the rand had strengthened by 0.3% to 18.7375 per US dollar, potentially marking its first day of gains in four days. Yields on benchmark local-currency debt fell by nine basis points to 12.1%, and stocks broke a four-day losing streak, posting their largest daily gain in nearly a month. The market's movements reflect the cautious optimism and nervous anticipation of the political developments ahead.
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