Nelson Mandela passes away

South African markets are calm following the passing of Nelson Mandela, who was instrumental in the country's peaceful transition away from apartheid.

One of Mandela's biggest achievements was enacting policies that paved the way for GDP to grow for 15 years, the longest period of expansion in South Africa's history. These policies included embracing the free market, cutting costs and attracting foreign investment.

The question is now that Mandela has passed on, whether South Africa will feel more free to abandon the policies and conciliation that he espoused. For example, the ANC's youth wing wants to nationalize banks and mines, policies that Mandela ditched in 1994.

There are also fears that Mandela's death could leave South Africa open to renewed racial and social tensions, such as those seen in the mine strikes over the past year or so.

The economy is already not in a good way: unemployment is 24.7% and there is a large inequality in earnings between blacks and whites.

The FTSE/JSE Top 40 is +0.3%, the South African 10-year bond yield is -2.5 bps at 8.16%, and the USD-ZAR is +0.2% at 10.4732 rand.



Comments (5)
  • Trader's Profit Compass
    , contributor
    Comments (2072) | Send Message
    What a life......i cannot fathom being locked up for 27 years for any reason, let alone in Mandela's case, no reason. Then to emerge from prison at such a late stage in one's life to lead a country back had to have taken an unbelievable amount of mental strength and courage.
    6 Dec 2013, 06:00 AM Reply Like
  • al roman
    , contributor
    Comments (18369) | Send Message
    Rest in peace
    6 Dec 2013, 06:01 AM Reply Like
  • TheJollyGreenMan
    , contributor
    Comments (103) | Send Message
    Nelson Mandela was very lucky and it is time that it is acknowledged.


    As a Communist he lead a revolutionary terrorist organisation that wanted to overthrow a government. Killing innocent civilians to achieve his objectives was part of his plan. Read his co-authored autobiography - The Long Walk to Freedom - if you want to dispute this fact.


    FW de Klerk let him out of prison after the fall of the Wall in Berlin. Communism was seen, at that stage, as a dead in the water ideology, so when Nelson was released he could not espouse or lobby for a failed dogma. To his credit, he embraced the free market system - albeit reluctantly - and South Africa was spared that what was done in other African countries, economies being ruined because of stupid and unworkable socialistic policies.


    The greatest legacy of Nelson Mandela is universal. He was the first African leader that showed, get elected, serve your term, and then hand over power to the next fellow. This is his most remarkable achievement and future generations will be taught that being elected as president doesn't mean its a job for life!


    For that reason I an very sorry to hear about his death. Since he resigned as president, more than three terms ago, he had no influence on the day to day running of the country. To try and say that is like saying George Bush or Jimmy Carter is still running the US of A.
    6 Dec 2013, 07:04 AM Reply Like
  • ratnamsub
    , contributor
    Comments (452) | Send Message
    A great man who will be remembered and will go into the history books. Yes he was lucky as at the time he was released iron curtain fell and the world was crying freedom. The whole world supported him to end apartheid and run free elections for South Africa. A dream come through for native Africans. The credit also should go to FW de Klerk who avoided bloodshed between the ruling whites and the natives by agreeing for free elections and a fully independent country.
    6 Dec 2013, 07:31 AM Reply Like
  • chillywilly69
    , contributor
    Comments (36) | Send Message
    His main achievement (almost his only) was not to throw SA into a bloodbath typical of communist ideology, fueling the civil war, keeping the country free for blacks and whites and all.
    6 Dec 2013, 08:56 AM Reply Like
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