• The South African stock market has dropped 2.4% in the last week, with every sector experiencing pullbacks, especially the Financials sector
  • The United States has accused the South African government of secretly providing weapons to Russia last December
  • President Cyril Ramaphosa refused to confirm or deny the US accusations, citing an ongoing investigation

Harare-Over the past week, the South African stock market has seen a decline of 2.4%, with every sector experiencing pullbacks, especially the Financials sector. This comes in addition to a drop of 3.7% over the last year, and tensions between South Africa and its allies are only exacerbating matters.

In recent news, the United States accused the South African government of secretly providing weapons to Russia last December, igniting even further controversy over the country's relationship with Russian President Vladimir Putin. According to reports, U.S. Ambassador Reuben Brigety stated at a news conference in the South African capital that arms were loaded onto a vessel in the dead of night for three consecutive days at the Simon’s Town naval base and then transported to Russia.

South African President Cyril Ramaphosa was questioned about these accusations during a meeting of Parliament, but refused to confirm or deny the U.S. allegations. "The matter is being looked into," he told political opposition leader John Steenhuisen, adding that an investigation was underway, and he declined to provide further comment.

The accusations come at a time when tensions between the West and Russia are high, with a battle for influence over the war in Ukraine and what appears to be an increasing arms race. Brigety's comments underscore the tensions between the West and countries that have yet to condemn Russia over the war or join in sanctions efforts.

The accusations and investigation, in turn, have left the South African stock market in a state of uncertainty, with the market's performance hanging in the balance. Time will only tell how this controversy will unfold and what the long-term effects will be for South Africa and its relations with the rest of the world.

Equity Axis News