ANC power battle eclipses key policy talks

The ANC gathers this week to review and revamp its policies at a meeting that will be overshadowed by a power struggle to succeed President Jacob Zuma as leader of the ruling party.

Deputy President Cyril Ramaphosa and Nkosazana Dlamini-Zuma are leading the field of contenders to be elected head of the ANC in December and probably president in 2019. Dlamini-Zuma has backed her ex-husband’s call for “radical economic transformation” to increase the black majority’s share of wealth, while Ramaphosa has put more emphasis on inclusive growth.

The leadership contest won’t feature on the agenda of the sixday ANC policy conference that started today in Johannesburg, but divisions between the competing power blocs will play out in the debates over issues such as land redistribution and ownership of banks and mines.

SA stocks have missed out on an emerging-markets rally in 2017, held back by an economy that slipped into recession. Johannesburg’s benchmark stock index is up just 1.9% since January, versus the 18% advance in the MSCI Emerging Markets Index. Foreigners have sold a net R76.8 billion worth of SA shares since the start of 2017.

Divisions over what needs to be done to address the malaise have become increasingly prominent in the ANC this year.

While Zuma backed a mining charter published June 15 that calls for greater black ownership and which has been condemned by the industry, Ramaphosa said companies and government should “go back to the drawing board” to reach consensus. – Bloomberg