JOHANNESBURG: South Africa’s rand weakened early on Monday as investors awaited the outcome of voting for the new leader of South Africa’s governing African National Congress (ANC).

At 0707 GMT the rand traded at 17.6875 against the dollar, 0.43% weaker than its previous close.

Voting for the ANC’s new leader was almost complete on Monday as the race pitting President Cyril Ramaphosa against former health minister Zweli Mkhize entered the final stretch.

The winner, who will run for president under the ANC banner in national elections in 2024, has been more or less guaranteed to become president in the close to three decades since Nelson Mandela ended white minority rule in the country.

“For the rand, trading activity should settle down through the week ahead, especially if the ANC elective conference outcome is benign and Ramaphosa is selected for another five-year term,” ETM Analytics said in a research note.

Analysts added that the ANC’s reformist agenda and its ability to introduce some necessary changes were at stake.

South African rand steady ahead of Q3 GDP data

“Anything short of that will likely see the USD-ZAR spike, with thin liquidity conditions amplifying the move,” ETM said.

The government’s benchmark 2030 bond was weaker in early deals, with the yield up 11.5 basis points at 10.330%.