Economics
An Equity Guide to Ramaphosa: Winners and Losers in South Africa
- Financial stocks, retailers, miners may benefit from policies
- Rand hedges, property companies invested abroad may suffer
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Equity investors reacted with euphoria to Jacob Zuma’s resignation as South African president, with stocks soaring the most in more than three years. Cyril Ramaphosa, elected to be his successor Thursday, is expected to pursue market-friendly policies.
Economic growth averaged just 1.6 percent a year while Zuma, who quit late Wednesday, was in office, undermined partly by a series of policy missteps and inappropriate appointments that rocked confidence. Since Ramaphosa’s December victory in a leadership contest for the ruling African National Congress set him on course to replace Zuma, South Africa’s rand has risen 12 percent against the dollar, more than any other currency.