It would have been silly to expect that there would be no market reaction to the Supreme Court of Appeal’s decision to overturn Judge Nicholson’s ruling in Jacob Zuma’s corruption trial.
The Rand closed at just over R10 to the dollar yesterday, and at the time of going to print it is currently trading at 10.11 ZAR/USD.This is an indication of international investors current unease with South Africa’s political future.
The ruling made by the court of appeals will allow the NPA to go forward with charges of corruption and fraud against Mr Zuma,the president of the ANC.The ANC is expected win again in the upcoming national election which means Mr Zuma is likely to be our next president.
The ANC has also said they will not change their presidential candidate and will stand behind Mr Zuma through his upcoming legal battle.The prospect of having a President who is facing and/or fighting serious legal charges will certainly make many investors wary.
