Culture

International Monetary Fund chief meets South Africa's Ramaphosa in Davos to discuss economy

International Monetary Fund chief meets South Africa's Ramaphosa in Davos to discuss economyā€¯

The announcement is a fresh blow to Zuma who has seen his power within the party wane since Cyril Ramaphosa succeeded him as ANC leader at an election last month, putting the deputy president in pole position to become national leader.

The party executive "discussed this matter. there will be interaction between officials, President Zuma and (party) president Ramaphosa", ANC secretary-general Ace Magashule told reporters.

"Officials were seized with this matter and officials will remain seized with this matter", he said, adding that Ramaphosa would "continuously interact" with Zuma over his future as president.

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"It is as if Cyril is confirming that he has taken over the reins", said Susan Booysen, a political science professor at the University of Witwatersrand's School of Governance.

An open question remains whether Zuma will step aside before February 8 so that Ramaphosa can deliver the annual state-of-the-nation address.

South African markets strengthened on Monday, driven by optimism about the prospects for change under the new leader of the ruling African National Congress (ANC). "The longer Zuma stays, the more people will lose confidence in the new leadership of the ANC", sources said. "The clearest example of this is the sudden new appointment of the Eskom board with the Minister of Finance Malusi Gigaba and the Minister of Public Enterprises Lynne Brown reporting to Ramaphosa, while Zuma was not involved in the decision at all".

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Further strengthening would also cause fuel price cuts and place downward pressure on inflation, with the possibility of the rand moving towards R10 to the dollar should Ramaphosa continue to make reforms and promote growth, she said.

The end to the USA government shutdown implied a shift to risk-on trade, said Rand Merchant Bank currency strategist John Cairns.

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