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South Africa’s President Tightens Grip as Main Rival Faces Trial

South Africa’s President Tightens Grip as Main Rival Faces Trial

Almost three years after he won control of South Africa’s ruling party, President Cyril Ramaphosa is moving to cement political control and gaining greater leeway to implement unpopular budget cuts and drum up international investment.

The Hawks, a special police investigative unit, revealed on Tuesday that an arrest warrant has been issued for Ace Magashule, the secretary-general of the ruling African National Congress. A successful prosecution in the case, which revolves around an audit contract, would debilitate Ramaphosa’s main political rival and weaken a party faction that opposes his economic agenda. Magashule has said he’s innocent.

South Africa’s President Tightens Grip as Main Rival Faces Trial

Magashule, who oversees the day-to-day running of the ANC, has publicly undermined Ramaphosa and sided with a party faction that advocates “radical economic transformation.” That includes proposals to seize White-owned land, redistribute wealth and changing the central bank’s mandate to ensure it focuses on promoting economic growth.

Ramaphosa has championed a clampdown on the embezzlement of state funds that took place during his predecessor Jacob Zuma’s nine-year rule. He also wants the government to invest 100 billion rand ($6.3 billion) in new infrastructure, with a view to spur 10 times as much spending from private investors, and to freeze civil servants’ pay for three years to help bring spending under control.

Faster reform in the continent’s second-biggest economy may restore confidence from international investors, as will Ramaphosa’s efforts to rebuild law enforcement agencies that were sidelined by the previous administration.

Magashule has yet to say whether he’ll comply with a directive from the ANC’s top leadership to vacate his post until his trial is complete.

©2020 Bloomberg L.P.