For South Africa, this is a big week in a big year. The country’s erratic leader, in whom dictator-like power resides, has supposedly been preparing to launch another misguided economic missile. He has apparently prepared his ANC cohorts. The nation will be brought into the picture on Thursday night.
Some maintain Jacob Zuma will use his State of the Nation address to announce the “redeployment” of respected Finance Minister Pravin Gordhan. The rumour mill says Gordhan will be replaced by Zuma’s ex-wife, an over-promoted politician with Presidential ambitions who has freshly returned from an under whelming stint as head of the African Union.
Others believe that Zuma learnt the folly of taking on global markets during Nenegate. They reckon the recent strength of the exchange rate suggests there will be no repeat of that blunder. On the other hand, the Rand has also received considerable support lately through hard currency inflows from the R1.4trn sale of SAB Miller to InBev.
We will get the answers soon enough. Tomorrow Zuma hosts a pre-State of the Nation luncheon with SA’s business leaders. It is the ideal opportunity to prepare them for Gordhan’s exit. Or allay their fears on the subject, which will be the perfect way to thank them for unprecedented collaboration over the past year. A big week indeed.
