Mbeki to stand for 3rd term

General Secretary of COSATU, Zwelinzima Vavi, was referring to the ANC elections due this December where a new party leader will be elected. It is anticipated that Mbeki is likely to seek a third term. Under the constitution, however, he is not allowed to stand as President for a third term. Observers believe he is likely to appoint his own candidate to stand as presidential contender.  

“A status quo will see the destruction of the alliance itself. We want to close the chapter of division…COSATU is not mincing its words. We want Jacob Zuma to lead the ANC as part of a new collective,” Vavi told a rally in Kimberley to mark the 63rd anniversary of the African National Congress Youth League.

The 1.8 million member-strong COSATU and the ANCYL have backed Zuma in a campaign to succeed Mbeki as president of the ANC at a congress due in December.

The rivalry between Mbeki and Zuma has triggered some of the worst party infighting in its history, with the winner to take over the national presidency in 2009.

International investors are reported to be concerned about Mbeki making himself available for a third term, according to top US ratings agency Moody’s, which is worried the markets will take a downturn if Mbeki is re-elected and the country has to wait for months before a new presidential candidate is announeced.

“The idea is that when in any emerging market there is a sign that an existing head of state wants to retain his powers, there tend to be question marks about what that could lead to. Politics in SA have been quite brutal recently, with people losing their jobs,” said a spokesman for the agency, referring to the recent dismissal of Nozizwe Madlala-Routledge, the deputy minister of health, and the suspension of prosecutions chief, Vusi Pikoli.

There are concerns among South Africa’s business community that the ANC leadership election could influence SA’s international credit rating and suffering a downgrading by Moody’s credit rating review due this month.  

It is also anticipated that investors would be concerned about a Jacob Zuma victory because of the perception of him holding more populist economic policies. Interestingly, Zuma more recently is reportedly sending out messages to reassure local bankers and international investors on the continuity of South Africa’s economic policies.