WORLD> Africa
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WORLD> Africa
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S.Africa's ruling party denies split after Mbeki
(Agencies)
Updated: 2008-10-01 10:46 The long struggle between Mbeki and Zuma has undermined the ANC's traditional unity and plunged South Africa into its biggest political crisis since the end of apartheid. Manuel resigned with other cabinet ministers after Mbeki stepped down, briefly rattling financial markets, before he made clear he would serve the next president. Several other ministers were also reappointed by Motlanthe but Mbeki loyalists stayed out. Asked about the Gauteng premier's resignation on the BBC Hard Talk programme, Manuel said: "I think probably over the next two weeks or so there would be a few resignations like this." He added: "There is likely to be some steadying of the ship over the next period and as that happens individuals will choose to depart." The ANC, previously known for its internal discipline, has ruled since the end of apartheid in 1994. Many analysts believe it still enjoys deep loyalty even from Mbeki supporters and any break-up is a distant prospect. Manuel said the government's economic direction would not change under either Motlanthe or Zuma, who have both sought to reassure investors that they will not abandon Mbeki policies that nurtured South Africa's longest period of growth. Some investors are uneasy about a Zuma presidency for fear that his strong backing by trade unions and the small but influential Communist Party will push policy to the left. The rand weakened last week during the political crisis. It slumped again by about 4 percent late on Monday due largely to the global financial crisis before recovering somewhat on Tuesday, but it remained under pressure. "There has obviously been contagion from the sub-prime crisis, but there is some political risk factored in," said Colen Garrow, an economist at Brait Merchant Bank. "The uncertainty has weighed on the markets ... (but) it is a peripheral factor." |
