Markets will be keeping a close eye on South Africa’s political moves in the coming weeks, as the stability of the Government of National Unity is tested with President Cyril Ramaphosa in focus.
South Africa’s highest court on Friday revived impeachment proceedings against President Cyril Ramaphosa over a scandal in which a large amount of foreign currency was stolen from inside a sofa in his farmhouse in 2020.
In 2022, Ramaphosa’s political party blocked an impeachment committee from being set up to further investigate the incident, which raised questions about how Ramaphosa acquired so much physical cash, whether he declared it and why he stuffed it in furniture instead of depositing it at a bank.
Ramaphosa, in power since 2018, has always denied wrongdoing over the scandal, dubbed “Farmgate” by local media, and has said the money was proceeds from the sale of some buffalo on his game ranch.
The court said the move to block the impeachment process was inconsistent with the Constitution and that the committee should now be established.
Ramaphosa said in a statement that he respected the court’s judgment.
Political analysts said there was still a long way to go in the impeachment process, and Ramaphosa was likely to survive if the matter was put to a vote in the lower house of parliament.
An impeachment vote requires a two-thirds majority, and even though Ramaphosa’s African National Congress (ANC) party lost its majority in the 2024 election, it still holds well over one-third of the seats in the National Assembly.
An independent panel of experts in 2022 found preliminary evidence Ramaphosa may have committed misconduct, which led some opponents to call for his resignation.
These calls have now been revived.
The opposition party that brought the case to the constitutional court, the far-left Economic Freedom Fighters (EFF), wrote to the speaker of the National Assembly on Friday asking her to set up the impeachment committee immediately.
Lawson Naidoo, executive secretary of the Council for the Advancement of the South African Constitution, said the impeachment committee’s work would be more detailed, likely taking several months.
“I don’t think the (panel’s) report is going … any further (towards) impeachment,” political analyst Oscar van Heerden said.
“Ramaphosa still (enjoys) majority support (in his party), and they are not going to want to upset things by (taking) this to its logical conclusion,” he said, adding that neither would the ANC’s key coalition partners like the Democratic Alliance.
(Reuters)
5 important things happening in South Africa today
Level 8 storms: The South African Weather Service has warned of not one but two cold fronts heading for the Mother City, with the first expected to hit on Sunday, and a more powerful system anticipated to make landfall on Monday (11 May). Residents have been warned to expect disruptive rainfall and flooding. [SAWS]
Motion of no confidence: Despite no convictions or parliamentary process yet to that effect, opposition parties like the MK and ATM – vocal Ramaphosa critics – are calling for the president to resign over the ConCourt’s ruling. They are attempting to accelerate the process by tabling a motion of no confidence in the president. [Citizen]
Billions in dodgy Eskom contracts: Amabhungane investigates billions of rands of Eskom contracts, raising questions about a R21 billion contract to supply diesel to peaking plant Ankerlig. The contract has been under investigation for almost a year, but Eskom is refusing to say what it found. [AmaBhungane]
Hacking in the name of SARS: Hacker group SilverFox has been linked to a campaign in South Africa that used fake SARS notifications to breach company systems. Clicking links or downloading attachments could see systems completely taken over. [MyBroadband]
Kganyago double warning: Reserve Bank governor Lesetja Kganyago has warned investors about the rapid growth of unregulated private credit markets and the high valuations of AI companies, cautioning that many South African investors could experience a bear market for the first time when these sectors correct.[ Daily Investor]
