The CEO of one of SA’s largest asset managers has called for a government of national unity, with Ninety One’s Hendrik du Toit warning against taking a path of racism and tribalism that will tear the country apart.
Du Toit said the outcome of last week’s election, in which the ANC lost its majority, setting the country on a course of coalition talks, demands that President Cyril Ramaphosa lead and ‘not be a follower’.
“I was the first South African public company CEO to say we need a government of national unity, which is different from what a coalition is. We need some form of co-operation. It’s not about jobs in the cabinet — it’s about reconstructing the SA economy,” Du Toit said.
“If we don’t do that, we are going to rue the day and end up in a tribalist, racist, backward and inward-looking economic and political set-up. My fear is that if we are not responsible now, that can happen.
“It’s a bit like 1993/4. South Africans are good at looking down the barrel of a gun. We just have to keep our cool because this could actually be the beginning of the most exciting period in this country’s history since the early 90s. I am excited but also afraid [of the possibilities].”
Financial markets are expected to remain unsettled over the next week or two as coalition discussions progress.
Post-election governing scenarios range from an ANC, DA and IFP coalition, which markets seem to favour due to the promise of more policy reform, stronger implementation and a firm stance against corruption, to a government of national unity involving the ANC, DA, MK, EFF and IFP.
Another possibility is the ANC partnering with its splinter groups, the EFF and MK. The ANC’s national executive committee, its highest decision-making structure between conferences, is meeting this week to plot the way forward.
Du Toit said he was impressed at how Ramaphosa handled the ANC losing power, a rare feat in many African states.
“I was incredibly proud on Sunday when the president spoke. I saw SA’s democracy maturing. We should note that. I think markets are currently priced for a positive outcome. But there is a downside risk if we get a mess,” he said.
“The responsibility on the political players and key figures in the ANC and the DA is massive. I hope that they understand that. It’s the time for the president to lead and not to follow.”
Brait CEO Peter Hayward-Butt said the country was at a crossroads. “It’s a watershed moment. Either we go left or right. I suppose from a market perspective if the ANC does something with the DA in the governance perspective, the markets will see that as a massive positive,” he said.
“If the ANC turns left and does something with the EFF and MK, the market won’t be particularly positive. The ANC has accepted the outcome of the election which bodes well for democracy.”
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