Africa News blog

What next for Jacob Zuma?

A court ruling that effectively reinstates corruption charges against African National Congress leader Jacob Zuma could hardly have come at a worse moment for him and the party that has dominated South Africa since the end of apartheid.

There appears little doubt that Zuma will be the party’s presidential candidate ahead of elections expected around April, but the ANC now faces its toughest electoral test yet with hefty graft charges hanging over its man.

Prosecutors say the ruling means Zuma remains charged with corruption, fraud and money laundering. This might severely hurt his image, internationally and at home, during a battle to fend off a challenge from the new party of ANC dissidents called COPE. The ANC is still expected to win, but maybe without such a sweeping parliamentary majority to be able to shape laws as it wishes.

The news brought renewed concerns of political instability and the rand fell to a one-month low.

Markets shrug off Zuma case

Adenaan Hadien, Cadiz Holdings

Pietermaritzburg may well have been brought to a standstill with the resumed corruption case of Jacob Zuma in the High Court, but I suspect the same would not be true for local markets.  Certainly, if last week’s market performances are anything to go by, then reactions are likely to be muted.  Last Thursday, the Constitutional Court dismissed all four of Zuma’s appeals to prevent the state from using potentially damaging evidence against him in his corruption trial.  On Monday, Zuma’s legal team submitted an application for a permanent stay of prosecution, arguing that his constitutional rights have been violated.  This application and the round of appeals which may follow if, as is expected, it was rejected, would again delay things.
On the week, the local currency gained over 4% against South Africa’s trading partners’ currencies and bonds enjoyed gains last seen in the late-1990s.  Equities put in a more mixed performance on the week, due to the oscillating woes of resources against financials and industrials.  The performances of bonds were even more impressive, given the higher-than-expected consumer inflation figures released on Wednesday.  Granted, Thursday’s producer inflation numbers were more encouraging.

Holding pattern dawns in Zuma saga

 Raenette Taljaard, Helen Suzman Foundation
 

ANC President Jacob Zuma’s quest for a pre-trial stay of prosecution looks certain to  perpetuate uncertainty and an uncomfortable ongoing holding pattern and turmoil inherent in these dramatic events.

These compounded uncertainties do not only affect the South African economy with perceptions of political risk ratcheting up as key members of the new ANC leadership step up the rhetoric as Zuma goes to court but also creates tremors for core constitutional institutions and the bench in South Africa. After upholding the search and seizure warrants used against Zuma and rebuking his legal team for what amounts to delaying tactics, the Court also discouraged pre-trial legal wrangles of the kind that started in Pietermaritzburg.