Johannesburg - As long as economic policies are kept intact and in some instances strengthened, a Jacob Zuma presidency for SA "can be a good thing", says an economist.
On Friday afternoon, ANC president Jacob Zuma won his bid to have the decision by the National Directorate of Public Prosecutions (NPA) to prosecute him on corruption and other charges declared unlawful.
Handing down his judgment in the Pietermaritzburg High Court, Judge Chris Nicholson said the application had nothing to do with Zuma's guilt or otherwise.
"The problem with the decision is that there will always be the question of whether Zuma was or wasn't guilty, but one could at least argue that the law took its course and the constitutional procedure was not compromised," Investment Solutions' chief economist, Chris Hart, told Fin24.com.
"As long as economic policies are kept intact, not compromised and in some instances strengthened, a Zuma presidency can be a good thing for South Africa.
"Zuma's supporters would expect delivery and good performance from ministers. We do have under-perfoming ministries, and he could change that," said Hart.
Efficient Group economist Dawie Roodt said the decision was good news as it meant there is clarity on the legal process: "This doesn't mean, though, that political uncertainty has been removed, which is more important for financial markets. I think that uncertainty still remains."
Hart said the decision proved that no South African is above the law, but that with the loss of the elite crime-fighting subsidiary of the NPA, the Scorpions, SA's capacity to deal with top-level corruption may well have been compromised.
"The ANC must show that it's prepared to deal with corruption," said Hart.
The High Court's decision was met with little reaction by markets on Friday.
"I would hesitate to say that the rand moved on that. It was already moving up," a currency trader said. At 12:55, the rand was trading at R8.07 against the US dollar, well off its five-year low of R8.30 reached on Thursday afternoon.
"The decision should be perceived as positive as it will calm down the political situation in the country, but it has had no short-term impact.
"We'll just have to wait and see what people read into it. In the meantime, the market is awaiting the US data this afternoon for some direction," the trader added.
"Bonds are selling off a bit, but it's not anything to do with the trial. The market is just following the currency," a local bond trader said.
- Fin24.com