---
title: "South Africa Rand’s Volatility Rises Amid Ramaphosa Farm Robbery Scandal"
description: "The rand’s volatility is soaring as a scandal involving South African President Cyril Ramaphosa and the sale of buffalo once again shakes investor confidence."
type: "NewsArticle"
publisher: "Daily Maverick"
site: "https://www.dailymaverick.co.za"
section: "Business Maverick"
author: "Bloomberg"
author_url: "https://www.dailymaverick.co.za/author/bloomberg/"
canonical_url: "https://www.dailymaverick.co.za/article/2023-03-06-south-africa-rands-volatility-rises-amid-ramaphosa-farm-robbery-scandal/"
published: "2023-03-06T17:47:09"
lang: "en-ZA"
word_count: 247
---

# South Africa Rand’s Volatility Rises Amid Ramaphosa Farm Robbery Scandal

> The rand’s volatility is soaring as a scandal involving South African President Cyril Ramaphosa and the sale of buffalo once again shakes investor confidence.

By Bloomberg · Published 6 March 2023, 19:47 SAST

## Key points
- The rand dropped as much as 0.7% against the dollar after South Africa's tax authority said it couldn't find records of the cash allegedly used by a Sudanese businessman to purchase animals at President Cyril Ramaphosa's game farm. Political uncertainty has resurfaced with the opposition calling for further investigations into the matter. Ramaphosa is expected to announce changes to his cabinet today in an effort to gain stronger support within his party. The scandal has once again threatened to roil South African financial markets, causing one-month implied volatility to surge by the most in a month.
- South African currency's one-month implied volatility surged due to an investigation into President Ramaphosa's handling of stolen funds.
- The opposition party has called for further investigations, raising political uncertainty in the country.
- South African Revenue Service confirmed it does not possess records of the cash allegedly used by a Sudanese businessman to purchase animals.
- President Ramaphosa is expected to announce changes to his cabinet at 7pm in Johannesburg.

## Content

The currency’s one-month implied volatility surged by the most in a month after South Africa’s tax authority said it’s unable to find records of the cash allegedly used by a Sudanese businessman to purchase the animals. The rand dropped as much as 0.7% against the dollar.

“Political uncertainty may resurface,” said Piotr Matys, senior foreign exchange analyst at InTouch Capital Markets. “With the opposition determined to find out the truth about those funds, President Ramaphosa may face fresh calls for impeachment.”

[Read: South Africa Tax Body Unable to Trace Cash Paid to Ramaphosa](https://www.bloomberg.com/news/articles/2023-03-06/south-african-tax-body-unable-to-trace-cash-paid-to-ramaphosa)

The scandal — tied to the buffalo profit that Ramaphosa failed to report stolen — is now once again threatening to roil South African financial markets.

An advisory panel found last year that the leader may have breached the constitution over his handling of the theft of at least $580,000 that had been stashed in a sofa at his game farm. Lawmakers later quashed the report, scuppering a potential impeachment inquiry, though opposition members of parliament have called for further investigations into the matter.

The main opposition Democratic Alliance had asked the South African Revenue Service to confirm that the businessman complied with a legal requirement to declare the foreign currency upon his arrival in the country. The agency said in a statement Monday that it “is not in possession of said record.”

Ramaphosa is expected to announce [changes to his cabinet](https://www.bloomberg.com/news/articles/2023-03-06/south-africa-trade-minister-named-lawmaker-before-cabinet-revamp) at 7pm in Johannesburg as he secures stronger support within his party.