After an exhausting period of negotiations for cabinet positions, with the broadly expected levels of drama and fluff aimed at influencing narratives throughout the process, President Ramaphosa has announced the National Executive for the seventh administration. Notably, while the cabinet appointments have garnered much attention, the individuals serving as Directors General will also play a crucial role.

The market may initially cheer the spirit underlying the Government of National Unity (GNU) and the reduction in uncertainty following the cabinet announcement, but the real challenges still lie ahead. It is no secret that the GNU faces significant ideological differences that need to be bridged, and realistically, there will be plenty of turbulence along the way.

Continued reform progress is, however, expected, promising a more favourable economic outlook for South Africa. While the market may remain cautious of getting too optimistic for now, material evidence of continued reforms could trigger significant capital inflows. Of particular importance will be further progress in consolidating SA’s fiscus, although the retention of Enoch Godongwana as finance minister suggests that this is likely.

Even though the Rand has recovered notably in recent months and is now trading closer to its risk-adjusted fair value, there is scope for it to record more gains through H2 of this year. It is poised to capitalise on looser monetary conditions in the developed world, with SA’s risk profile significantly better than it was just a few months ago.


Six years ago, Ramaphosa promised South Africans the beginning of a new dawn. He adopted an economy facing structural headwinds due to the maladministration of his predecessor, but has gradually been implementing key reforms aimed at crowding in the private sector.

Now, the GNU has another opportunity to push forward the ‘new dawn’ vision. One, perhaps with a more centrist leaning and a business-friendly stance, which will lay the foundations for sustainable, long-term economic growth. In turn, this holds the potential to significantly improve SA’s risk profile, which will unlock foreign capital flows and support the ZAR.

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