SA’s political climate most uncertain since apartheid era, Investec says

SOUTH Africa’s political climate is the most uncertain since the end of the apartheid era, with investors acutely concerned about a potential coalition between the governing party and a leftist group after next year’s elections, Investec Bank’s chief executive officer said.

Anxiety is intensifying over the implications of the African National Congress falling short of the 50% it needs to retain control of the continent’s most industrialised economy, Richard Wainwright said in an interview with Bloomberg TV on Wednesday.

That may push the party to tie up with the Economic Freedom Fighters, which advocates for the nationalisation of banks, mines and land.

“There’s probably the highest level of uncertainty politically that we’ve had since 1994,” he said. “It does appear that they are siding in certain instances with the EFF. That will be very negative for international investors and domestic investors.”

The ANC has governed South Africa since the end