South African prosecutors are considering a legal request by ruling ANC leader Jacob Zuma to drop the graft charges against the man who is expected to be the next president after the elections in April. Zuma has always denied any wrongdoing and his followers say the charges were politically motivated.

A decision to drop the charges would give the African National Congress a big boost ahead of what is expected to be the most closely-contested poll since apartheid ended in 1994. It would also remove a major distraction for Zuma in office and the prospect of court appearances that could tarnish South Africa’s standing abroad.

In the short term, investors might also welcome such a step that removes a source of uncertainty and eases political risk.

Long-term, however, dropping the charges could damage South Africa's image.

South Africa often boasts about its constitution, but faces rising disquiet about the independence of its judiciary.

A victory for Zuma could add to that sentiment, eroding confidence in the rule of law and stoking fears South Africa is sliding away from the democratic ideals it sought to promote after the end of apartheid. Some foreign investors even worry it could give the impression South Africa is heading in the direction of neighbouring Zimbabwe.

Opposition party COPE said dropping the charges would add weight to perceptions that South Africa is becoming a "banana republic".

Better to drop the charges or let them stand? What do you think?

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.

Zuma's lawyers may appeal to the Constitutional Court, the highest in the country, which will drag out the case further. Zuma has said before he will only step down as president if found guilty of the corruption and fraud charges.

Prosecutors and Zuma may try to secure a deal that will end the long-running saga over charges that Zuma’s supporters see as politically motivated.

A settlement may suit Zuma if it looks as though he will face new charges and a trial that will either coincide with the election, or punctuate the first years of his presidency.

The appeals court ruling is good news for former President Thabo Mbeki, helping to repair his image after being ousted by the ANC in September, following the high court judgement that suggested he interfered to secure charges against Zuma. He cannot be expected to return to government, however.

What should Zuma and the ANC do next? Even if no charges are brought by then, would the case be likely to have an impact on the elections? Would COPE stand to benefit?