President Cyril Ramaphosa has been Under tremendous pressure to appoint a credible cabinet which will implement his economic reform agenda.
His selection of MP’s is likely to determine the direction of the markets and investor confidence. Rating agency, Moody’s warned the sworn in president that it is keeping an eye on the composition of the incoming administration and the policies it would put in place, in addressing South Africa’s credit challenge.
Data shows that the labour market conditions in the past few weeks deteriorated, with the unemployment rate having picked up to 27,7% from 27,1%. Production Figures weakened as well as retail and mining according to the first quarters’ activity data.
While Tito Mboweni’s budget speech sent the right message on the wage bill, it failed to address issues surrounding Eskom.
Yesterday 22 May after being sworn in Ramaphosa said he knew the country is watching and insisted he knews which work needed to be done.
In a twist of events there are certain names that may not be seen in Parliament.
- Nomvula Mokonyane who has been accused of taking bribes, this according to findings by the Zondo Commission
- Former Finance Malusi Gigaba and former National Assembly Speaker Baleka Mbete
- Deputy President David Mabuza as he has corruption charges against him
These announcements may largely be Market Positive.
Meanwhile the World Bank projects economic growth for South Africa in 2019 at 1.3 percent, accelerating further to 1.7 percent in 2020. The biggest challenge it says, is the development of its people.
With the elections over and cabinet ministers elected, South Africans can now move rapidly towards the first sitting of parliament. What happens afterwards is something that many analysts, economists and investors will be keeping a keen eye on.