How prices increased in South Africa after Zuma took over

Jacob Zuma became the fourth President of the Republic of South Africa on 9 May 2009, following his victory over Thabo Mbeki as President of the ANC on 18 December 2007.

Zuma faced numerous challenges before and during his presidency, including allegations of racketeering and corruption.

The Zuma government is also no stranger to allegations, which include concerns about state capture by the Gupta family.

Political uncertainty and concerns about corruption have taken their toll on the South African economy, which has resulted in slow economic growth and a weak rand.

The weak rand

The rand hit an all-time low after Zuma unexpectedly fired former Finance Minister Nhlanhla Nene in December 2015 and replaced him with Desmond van Rooyen.

This event became known as Nenegate, and according to various sources, the blunder by Zuma wiped at least R500 billion from the South African economy.

Fortunately, van Rooyen was replaced by Pravin Gordhan within days – but a lot of the damage could not be undone.

It is, however, not only Nenegate which is to blame for the weak rand. The slow growth of the economy, political uncertainty, and structural problems in the local economy have resulted in the currency weakening.

The graph below shows how the rand has weakened against the US dollar since Zuma became president.

ZAR per USD

How prices changed from 2009 to 2016

The graphic below shows how the price of certain products increased between 2009 and 2016, which is partly due to the weaker rand.

Price Changes Under President Jacob Zuma

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How prices increased in South Africa after Zuma took over