JOHANNESBURG (Reuters) – The South African rand weakened in early trade on Monday as markets await President Cyril Ramaphosa’s cabinet announcement 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 against the US dollar, down about 0.22% from its previous close.
Nine parties have joined the ANC in the Government of National Unity (GNU), including the pro-business Democratic Alliance, and all eyes will be on Ramaphosa’s cabinet announcement expected this week.
Ramaphosa said in his weekly newsletter to the nation on Monday that South Africans want elected representatives to “put aside narrow interests and work together to build the country”.
“The GNU cannot be preoccupied with jockeying for positions, fights over appointments, or squabbles within and between parties.”
The cabinet statement could indicate the direction of the country’s financial markets.
Ramaphosa added that the government’s top priority is economic growth to create jobs.
South African government bonds due 2030 were weaker in early trading, with yields rising 4 basis points to 9.725%.