New leadership behind strong rand

Since election of the new leadership of the ANC, the mood has been very positive

ANC treasurer-general Paul Mashatile says new political leadership and the promise of “getting things right” were behind the rand strengthening against the dollar.

Yesterday, the currency breached the R12 to the dollar level for the first time since 2015.

Analysts ascribed the improved market sentiment to the drive by the ANC government to restore South Africa’s battered investment image which came about after several corruption scandals.

Mashatile, who is in Davos, Switzerland, for the World Economic Forum (WEF) as part of the South African delegation, told the African News Agency (ANA): “Since the election of the new leadership of the ANC, the mood has been very positive in the country. But that is clear even in the globe, because it seems there is confidence that the new leadership is going to change things.

“Our president has been talking tough on corruption, state capture and really sorting out things.

“So I think the expectation with this new leadership is that we are going to get things right, particularly around good governance, making sure that state enterprises are run properly, government departments and all that.”

Mashatile was elected to the party’s top six leadership structure at the December conference of the ANC.

“I attribute the strong rand to that,” Mashatile said.

Looking at the increasing investor confidence, Mashatile added “in the coming weeks and months we probably want to see more investment coming to South Africa, and obviously the people are expecting to see more changes going forward”.

Earlier, Trade and Industry Minister Rob Davies said on the sidelines of the WEF summit there was optimism around the country’s growth prospects, aided by a more stable political outlook after the ANC’s December elective conference. – African News Agency/ANA