The General Election outcomes in South Africa have left investors torn between anxiety over potential coalition arrangements and lingering hopes for a market-friendly government.
Prior to the vote, investors were optimistic, expecting the ruling African National Congress to secure sufficient votes for a coalition with a smaller party, leading to gains in the rand and other national assets.
South Africa’s rand plummeted as election projections revealed a significant drop in support for the ruling African National Congress (ANC), sparking concerns about potentially chaotic coalition negotiations and causing unease among investors.
The African National Congress (ANC) got 42.7% of the votes in Wednesday’s election, according to the latest update from the electoral commission.
Former President Jacob Zuma’s supported uMkhonto we Sizwe (MK) party grabbed 10%, moving ahead of the radical left Economic Freedom Fighters to become the third largest party, while the pro-business Democratic Alliance came in second with 23.6%.