JOHANNESBURG (Reuters) – South Africa’s rand fell in early trade on Monday amid expectations for an announcement from President Cyril Ramaphosa’s cabinet after the African National Congress lost its parliamentary majority in last month’s elections for the first time in 30 years.
At 0556 GMT, the rand was trading at 18.0075 per dollar, approximately 0.22% weaker than the previous close.
Nine parties have joined the ANC in a Government of National Unity (GNU), including the pro-business Democratic Alliance, and all eyes will be on Ramaphosa’s cabinet announcement, expected this week.
On Monday, Ramaphosa, in his weekly bulletin to the nation, said South Africans wanted elected representatives to “put aside narrow interests and work together to build the country.”
“The GNU cannot be occupied with jockeying for positions, jostling for nominations, or bickering within and between parties.”
The government’s announcement could give direction to the country’s financial markets.
Ramaphosa added that the government’s top priority is economic growth leading to job creation.
South Africa’s benchmark 2030 government bond was weaker in early trading, with the yield rising 4 basis points to 9.725%.
