Fears over the ailing health of Nelson Mandela are growing.
This, after his children requested an urgent meeting with close relatives of the former president and chiefs of the Abathembu royal family gathered at his home in Qunu this morning, reports IOL.
While there’s no new information to report since the Presidency announced that Madiba’s condition had deteriorated to ‘critical’, it’s doing little to allay the country’s fears that the end is imminent.
Now, Minister Manuel has spoken out to calm investor nerves.
‘Don't worry about SA post-Mandela’ – says Manuel
Speaking from London yesterday, Manuel said “international investors need not worry about South Africa's future when senior statesman Nelson Mandela eventually dies, as his legacy will be safeguarded,” explains the Business Report.
This comes after many economists have expressed their concern that “the death of Mandela, often considered the moral compass of the ruling ANC party, will embolden the ANC's radical elements, such as those who criticise him for making too many concessions to the white minority or others who call for nationalising the giant mining industry,” adds MoneyWeb.
Current volatility shows how real these investment fears really are
To date, “Mandela's illness has coincided with a storm of events for South Africa, which is seeing investors flee its bond markets as domestic worries over chronic labour unrest coincide with a withdrawal of liquidity by the US Federal Reserve,” reports Fin24.
While Manuel has shrugged this off, citing that other emerging markets were feeling the impact of the Fed's stimulus withdrawal process as much as the South African economy, this hasn’t alleviated fears about the safety of investing in South Africa after should Mandela pass away.
So it’s no wonder than that, as FSP Invest reported yesterday, this “sentiment factor, is weighing down on the rand”.
Despite this, Manuel remains confident that the South African economy will weather this storm. After all, he told reports in closing, “we will continue to see periods of uncertainty, but at some point people will start looking for value” and they’ll find it, here, in the South African economy.