Tag: Robert Mugabe

In February 2018, the African National Congress (ANC) government of South Africa joined with the radical left-leaning Economic Freedom Fighters (EFF) to approve a motion in parliament to request the Constitutional Review Committee to 'undertake a process of consultation to determine the modalities of the governing party resolution'.

If nothing else, 2017 provided proof positive that the unexpected does happen. South Africa’s political and economic crisis entered a new phase with the GuptaLeaks revelations, Kenya had to rerun its elections and the seemingly indomitable Robert Mugabe was forced from office in disgrace.

Political uncertainty through transitions and instability are among the key risks for businesses in Southern Africa in 2018. 2018 will see continued uncertainty around political leadership in our Southern African markets. The transitions in Zimbabwe and Angola in 2017, elections in Mozambique in 2018, and factionalism within South Africa’s ruling African National Congress (ANC) once again remind businesses in the region of the importance of gaining a clear understanding of the impact of such uncertainty on their risk environment.

Imagine that you woke up this morning to the news that Jacob Zuma and Donald Trump had both just announced their resignations as President and that Robert Mugabe has been declared unfit to lead Zimbabwe! Now think of who you would choose to lead? More importantly, what qualities should the next leader have?

Political uncertainty globally will have ripple effects on Africa, primarily through impacts on commodity prices and global economic sentiment. While the early months of 2017 have seen improved prices for the commodities on which many southern African economies rely, longer term economic sentiment is more mixed. Meanwhile, governance improvements and the embedding of democratic practices and norms will be tested by pockets of instability as succession battles take place across the region.