Why South Africa's Institutional Fabric Is at Risk

The transcript discusses the political and economic instability in South Africa due to President Zuma's actions, including the firing of the finance minister. It explores the potential market reactions and political consequences, such as a non-confidence vote. The discussion also delves into Zuma's possible end goals, including control over the National Treasury, and the implications for the country's economic stability. Investor perspectives on South Africa's market dynamics and the potential impact of international ratings are also considered.

What was the main reason for the political instability in South Africa as discussed in the first section?

• The Finance Minister's resignation

• Jacob Zuma's firing of the Finance Minister

• A natural disaster

• An international trade embargo

What is one potential outcome of the internal political split within the ANC?

• Zuma gaining more power

• A no-confidence vote against Zuma

• The ANC merging with another party

• Zuma becoming the Finance Minister

What is a possible consequence of Zuma's actions on South Africa's financial markets?

• Increased foreign investment

• Stabilization of the currency

• Testing the wides in bond yields

• Immediate economic recovery

How might international investors react to the changes in South Africa's political landscape?

• By increasing their investments

• By withdrawing their investments

• By waiting to see the market reaction

• By lobbying for political change

What is a concern if the Finance Minister is closely aligned with Zuma?

• Increased political independence

• Greater economic stability

• Potential misuse of the National Treasury

• Improved international relations