Investors will be keeping a close eye who Ramaphosa appoints in Cabinet says economist
Chief economist at Econometrix Azar Jammine says one of the key elements President Cyril Ramaphosa will need to undertake, is who he will appoint for his cabinet and if the size will be reduced.
The African National Congress (ANC) won the May 8 general elections with 57,5% recording their lowest results since 1994.
Jammine says investors will be keeping a close eye at the size of Ramaphosa cabinet.
"People will look to see whether he has eliminated from his cabinet certain minister who were tainted with perceptions of corruption and state capture because that will be seen as a signal of the extent of the freedom to which Ramaphosa will be subjected to.
"In fact, it's not just within the cabinet, it’s also the whole question of the secretary general and the deputy president who are outside of the cabinet but who are perceived to be in a faction aligned against Ramaphosa, much of the focus will be on what happens to their positions , " Jammine said.
He adds that the other focus will be on the President state of the nation address and what he will say about a way forward in growing the economy.
"The key issues that Ramaphosa will need to address are firstly he will need to be seen to act strongly against corruption and state capture and bringing perpetrators to book.
"Secondly he will need to be seen to be acting in a way to improve the management, governance, and competence of state-owned enterprise and in particular people will be hoping that he will provide some signals that look as if they provide hope in terms of improving the financial position of these state-owned enterprises so that they don't rely on government to bail them out."
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