JOHANNESBURG (Reuters) – The South African rand fell in early trade on Monday, as markets awaited the announcement of President Cyril Ramaphosa’s government after the African National Congress lost its parliamentary majority in last month’s elections, the first time in 30 years.
At 0556 GMT, the rand was trading at 18.0075 against the dollar, about 0.22% weaker than its previous close.
Nine parties have joined the ANC in a national unity government, including the pro-business Democratic Alliance, and all eyes will be on Ramaphosa’s government 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 national unity government cannot be preoccupied with jockeying for positions, struggles over appointments, or bickering within and between parties.”
The Cabinet announcement could provide guidance to the country’s financial markets.
Ramaphosa added that the government’s top priority is economic growth to create jobs.
South Africa’s benchmark government bonds for 2030 were weaker in early deals, with yields rising 4 basis points to 9.725%.