South Africa president's impeachment process may stall

Significance

The report found that Ramaphosa may have violated the Constitution in matters related to the theft of large amounts of US currency from his farm in early 2020 and subsequent interference in the investigation. Ramaphosa reversed an initial decision to resign, and will contest the report.

Impacts

• A Reserve Bank investigation could complicate matters for Ramaphosa if it finds he broke regulations on foreign exchange holdings.
• Uncertainty over Ramaphosa's future may put downward pressure on the rand.
• The hit to Ramaphosa's credibility may increase the risk of 'grey-listing' of the banking sector by the Financial Action Task Force.