This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.
Zuma recall now official
The African National Congress (ANC) has now confirmed through the National Executive Committee (NEC) that South African president, Jacob Zuma, is being recalled from his position. The current president has been given 48 hours’ notice to step down and should he do so, Cyril Ramaphosa, the current deputy president (and ANC president), would act as president until a new one is elected via secret ballot in the National Assembly.
Should Zuma decide not to step down, it will then be up to the National Assembly to remove him. Alternatively, his removal could be done through impeachment proceedings.
What if he doesn’t resign?
Opposition parties have already tabled a motion of no confidence in an attempt to remove Zuma through the National Assembly. The date scheduled for the motion is 22 February 2018, although the Economic Freedom Fighters (EFF) have asked the speaker of parliament to move this date forward, increasing the pressure on the ANC to enforce the removal of the president.
The ANC may be hard pressed at the ballot box at the next elections, should the end of Zuma's tenure arrive through opposition party efforts. Especially now that the ruling ANC have conceded that they no longer want him to serve as president of the country. It has been suggested that the ANC may also invoke a motion of no confidence to forcibly remove the president, should he not do so willingly.
A motion of no confidence, should it be successful in ousting the current president, would require the entire cabinet to resign. The speaker of parliament, Baleka Mbete, would then be acting president until parliament decides on a new one.