This was due to a “more positive business mood and political developments that are expected to put South Africa in a position for more encouraging business and economic policy options,” the South African Chamber of Commerce and Industry said in a statement.
However, Piotr Matys, emerging market strategist at Rabobank, told Giftofaservant: “The market could be too optimistic about Ramaphosa’s ability to implement much required structural reforms, which could be stalled by ANC officials who are still loyal to Zuma.”
“Jacob Zuma’s removal as president is an increasingly urgent priority for the new ANC leader Cyril Ramaphosa,” Ben Payton, head of Africa at Verisk Maplecroft, wrote in a note Tuesday.
But Ramaphosa faces a tricky tightrope walk, appeasing both voters keen for corruption allegations against Zuma to be acted upon, as well as Zuma’s own supporters within the ANC.
Payton added: “The details of the power transfer, however, are likely to prevent Ramaphosa from implementing much of his own agenda, at least until after 2019.”