JOHANNESBURG (Reuters) -South Africa’s rand firmed on Thursday as investors awaited President Cyril Ramaphosa’s State of the Nation address, which could offer some solution to ease a worsening power crisis.
At 1510 GMT, the rand traded at 17.6425 against the dollar, 0.7% stronger than its previous close.
Investors are looking for leadership, guidance and clarity on steps being taken to extricate South Africa from its electricity generation crisis.
“The country’s future is at stake, so the rand will be solely focused on the contents of his message,” ETM Analytics said in a research note.
Daily power cuts since last year have hammered economic growth and are proving a major test for the governing African National Congress, whose support among voters is sliding.
“A calm, direct and honest assessment, with strict timelines and some accountability, will go a long way to calming nerves,” ETM said, adding that the market perceives significant risks and is positioned for some disappointment.
Shares on the Johannesburg Stock Exchange were little changed ahead of the president’s speech, with both the Top-40 and the broader all-share closing not far from their previous close.
The government’s benchmark 2030 bond was stronger, with the yield down 4.5 basis points at 9.730%.
(Reporting by Anait Miridzhanian and Bhargav Acharya; Editing by Robert Birsel and Jan Harvey)
