Strong ANC win would boost SA asset prices - Goldman Sachs

A strong win for President Cyril Ramaphosa’s ANC in next week’s election would trigger a rally in asset prices, according to Colin Coleman, head of sub-Saharan Africa at Goldman Sachs Group.

"We need to get out of this election a strong mandate for structural reforms," Coleman said in an interview on Bloomberg Television on Wednesday.

Support of 60% would give Ramaphosa the "political space to implement his modernisation agenda, including trying to effectively get the state-owned enterprises and a raft of economic reforms firmly in place."

With South Africans scheduled to vote on May 8, opinion polls are suggesting the ruling ANC will win enough votes to remain in power. The margin of victory, however, is key to determining if Ramaphosa is able to deliver on pledges to revive flagging economic growth, bring rampant corruption under control and address a 27% unemployment rate.

Estimates of support for the ANC range from 51% to 61%, with the opposition Democratic Alliance garnering between 19% and 24%, according to surveys by polling firms and research institutes. Julius Malema’s Economic Freedom Fighters, currently the third-largest party, is seeing support of 11% to 14%, the polls show.

Were the ANC to reach the 60% mark, "then the market will be very bullish," Coleman said. Anything below that level would limit Ramaphosa’s ability to make the changes he wants, he said.

Find everything you need to know about the 2019 National and Provincial Government Elections at our News24 Elections site, including the latest news and detailed, interactive maps for how South Africa has voted over the past 3 elections. Make sure your News24 app is updated to access all our elections coverage in one place. 

,election 2019

ZAR/USD
17.54
(+0.65)
ZAR/GBP
22.98
(+0.68)
ZAR/EUR
20.65
(+0.58)
ZAR/AUD
12.58
(+0.63)
ZAR/JPY
0.17
(+1.00)
Gold
1947.58
(-3.99)
Silver
26.93
(-7.37)
Platinum
938.00
(-4.66)
Brent Crude
44.95
(+1.33)
Palladium
2123.00
(-4.73)
All Share
57451.33
(+1.22)
Top 40
53112.03
(+1.29)
Financial 15
10149.26
(+2.54)
Industrial 25
75522.89
(+1.14)
Resource 10
59625.80
(+1.15)
All JSE data delayed by at least 15 minutes morningstar logo
Company Snapshot
Voting Booth
Do you think it was a good idea for the government to approach the IMF for a $4.3 billion loan to fight Covid-19?
Please select an option Oops! Something went wrong, please try again later.
Results
Yes. We need the money.
11% - 950 votes
It depends on how the funds are used.
74% - 6338 votes
No. We should have gotten the loan elsewhere.
15% - 1307 votes
Vote