Corruption allegations in South Africa forced Jacob Zuma to step down yet this bold step may have significant impact on African economy. He was then replaced by Cyril Ramaphosa who is currently the South African president. Ramaphosa promised to work on eliminating corruption in the country. Moreover, he promised to improve the South African economy. The economy has been on the decline in the recent past. The country’s political and economic decisions have a huge bearing on the rest of African countries. This is because South Africa is one of the richest countries in the continent. Zuma’s departure as a president will affect the continent in many ways.
Countries like Zimbabwe, Botswana and Namibia caries out trade with South Africa. Such countries are the ones that will feel the effect of a new president in South Africa. Zuma and other corrupt leaders in the past regime might have given trade deals to the highest payers. In case Ramaphosa delivers according to his promises on corruption then South Africa will trade with many countries. This will help in improving the continent’s economic growth. The South African economy has been on a decline in the recent past. These are some of the reasons why the citizens pilled more pressure on Zuma to resign. The resignation has reinstated the confidence of investors in the South African economy.
The value of the Rand went high immediately Ramaphosa become the president. That shows how the investors confident grew within a short period of time. The investors will also have to invest in the rest of African countries. However, it does not guarantee a shooting in the economy due to Zuma’s departure. His departure can even lead to instability in the South African economy. This can be bad news for the rest of Africa. But many believe that his departure will give stability to the South African economy. Ramaphosa still has to prove his worth in bringing back the country’s economy to where it was before.
Zuma’s departure is also a warning to other countries that have economic problems and corruptions. African countries are taking a different direction in their leadership. People are already tired of bad leadership. The recent ousting of Robert Mugabe in Zimbabwe is a clear sign that people are ready to fight for their economy. Businesses and citizens will, therefore, have huge confidence in their economy. This will strengthen consumer spending and the markets. This is in case the new leadership creates more jobs.