The warning is contained in RMB’s report titled “Political Views In A post Downgrade‚ post Gordhan SA”.
It raised the ire of Zuma’s staunch defenders. The ANC Women’s League issued a statement on Thursday reminding the bank that it was ANC members who elected party leaders.
RMB predicted that political uncertainty might persist up until 2019 when there may be a change of government. “The market may be under-pricing the probability that Zuma gets forced from office in the next few months‚” it said.
The report also warned that the removal of former Finance Minister Pravin Gordhan increased the chances of potential interference in the South African Reserve Bank.
“Risks of a shift to the left‚ including potentially interference in the SARB (South African Reserve Bank) are seen as having increased‚” said the report.
But ANC Women’s League secretary general Meokgo Matuba dismissed the report.
“Despite current challenges that the ANC is facing‚ with spirit of humility the ANCWL would like to indicate to the compilers of the alleged RMB report that the ANC remains the only hope for the ANCWL supporters‚ members and the general public who are on daily basis faced with untransformed financial sectors where some banks such as the FNB charge different loan interests to different racial groups.
“It is only the ANC government through established institutions like Competition Commission that can deal with banks which are involved in the corruption of the manipulation of the SA currency (sic)‚” ANCWL general secretary Meokgo Matuba said in the statement.
Since Zuma’s cabinet reshuffle last month‚ which led to the removal of Gordhan and his deputy Mcebisi Jonas‚ there have been some jitters regarding the country’s policy direction under new Finance Minister Malusi Gigaba.
This was amplified when South Africa’s sovereign rating was downgraded by both S& P Global Ratings and Fitch.
The report‚ which RMB states is confidential‚ noted that while the odds of Zuma being forced out of office had increased‚ so had the odds that his faction would win the next ANC elective conference in December.
The report was based on analysis by seven analysts.
Under interpretations‚ the RMB report stated that most analysts believed that Dlamini-Zuma was the clear front-runner to win in December.
Deputy president Cyril Ramaphosa slipped to second place and ANC treasurer general Zweli Mkhize to third.
“Outsiders suggested included (Kgalema) Motlanthe‚ (Jeff) Radebe and (Lindiwe) Sisulu‚” the report noted.
RMB spokeswoman Joandra Griesel had not responded to requests for comment at the time of publishing.