South Africa’s business community has been shaken by the country’s shock election result, which could see its partnership with the government crumble and a populist wave sweep aside belated programmes to fix everything from power shortages to congested ports.
The ANC is projected to garner as little as 40.5% of the vote, losing its majority for the first time since the end of apartheid in 1994. Only days before the election, a survey by research group Krutham showed that more than two-thirds of local and foreign fund managers expected the ANC to form an alliance with minor parties that would have little impact on its decision-making.
Those parties have called for the nationalisation of mines and banks – policies that Nelson Mandela dropped before the advent of democracy in 1994 – and large increases in welfare payments. The EFF has demanded that its deputy leader, Floyd Shivambu, become finance minister, and an alliance with either would likely mean Ramaphosa’s departure.
Ramaphosa has “been a critical role player and leader in overseeing this process of structural reform, the head of driving the partnership,” Kingston said. “It would be very risky to substitute him with anyone who doesn’t have the credibility and confidence of the market.”