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Analysts Hail Magahshule Suspension as Key Victory for Ramaphosa's Reform Agenda

SOUTH AFRICA

LOCAL NEWS

  • Magashule's supporters say he will never apologise for 'suspending' Ramphosa after being ordered to yesterday by the president or face punishment.
    • Analysts have pegged Magashule's suspension as a victory for the 'reform' faction within the ANC, but note that political turmoil will abound for a long time to come.
    • Local Politics professor says "defeat of the RET crowd is a very positive signal…Ramphosa must now reshuffle his Cabinet"
  • Experts warn SA must move to boost restrictions as third wave risks increase.
    • SA's recent model estimates for a smaller third wave are now in question, given the emergence of two new variants (UK & Indian) which risk escalating its intensity.
    • Currently it is not known how widespread the two variants are, with only 15 people found to be carrying them.
    • Authorities say they are on high alert. SA saw 1,129 new cases yesterday, down from last week's peak of ~2k
  • International Labour Organisation has been called in to assist with SA's wage deadlock as Govt & unions work to break an impasse in negotiations.
    • Unions are demanding 7% increase, while govt is offering 0% –saying that there is no money available.
    • Workers, meanwhile, say that it is Govt's fraud and corruption that have left the coffers dry, and that workers should not be paying the price for that. SA's fiscal consolidation plan relies on cutting the wage bill.
    • ~33% of the national budget goes to wages, which have been increasing far above inflation for a decade
MNI London Bureau | +44 020-3983-7894 | murray.nichol@marketnews.com
MNI London Bureau | +44 020-3983-7894 | murray.nichol@marketnews.com

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