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The ANC says its economic policy won’t shift, but many commentators do expect some changes. Unions backed president-in-waiting Jacob Zuma during some pretty hairy times and his government is expected to be less economically conservative.
Interest rates
Zuma has dismissed demands by some in his party that the SA Reserve Bank's mandate and the policy of inflation-targetting have to change. Critics want the central bank to be more relaxed about monetary policy, not concern itself so much with inflation targets and lower interest rates more aggressively to boost the faltering economy.
But while he is not expected to interfere, Zuma has stated that he is in favour of interest rate cuts.
With many economists expecting more rate cuts – some even predict a steep cut of two percentage points on Thursday – a clash with the central bank may be avoided.
If rates do not move fast enough, the Reserve Bank governor Tito Mboweni's job – which is up for review in August – may not be safe.
Your job
ANC leaders have been adamant that there will be no bailouts of struggling firms – particularly in the car and mining industries, that have been worst hit by the global crisis.
So although Zuma has urged businesses not to cut jobs and rather make other sacrifices (like smaller bonuses for bosses), your job probably won't be safer under the new government.
The government has promised that new jobs will be created and remained committed to halving the unemployment rate of more than 21%, mainly through its R787bn infrastructure programme.
However, this could prove quite difficult. Zuma inherits SA's largest budget deficit in more than a decade and borrowing the money for the projects could be tough (and expensive) given the global credit crunch.
Tax
There is little chance of much tax relief – particularly for middle and high-income groups. Government will earn R50bn less in tax than it expected as businesses and individuals suffer – at exactly the time it needs more money to bolster the economy.
Also – the new government wants to move ahead with the new national health insurance system. Health Minister Barbara Hogan has said that a new tax will be needed to finance it.
Some believe that medical aid members will lose the tax relief they currently enjoy on their monthly instalments.
Your investments
So far, the politicking and election results have had little effect on shares and other markets. In fact, the rand has enjoyed a strong rally during the last week.
But the market will be watching Zuma’s cabinet appointments very closely. Some experts have warned that signs of cronyism – instead of appointments on merit – will not go down well.
The market is particularly keen to see that Trevor Manuel, the world’s longest serving finance minister, stay in cabinet. There have been grumblings from prominent ANC representatives that the treasury has become to powerful and his department has been restricting state spending.
He is expected to stay on in cabinet, but might be moved to head a new body which will oversee state infrastructure spending and, crucially, state-owned firms.
SAA, Eskom, Transnet and others will be major challenges for the new government. They need more than R1 trillion to address ageing infrastructure and huge capacity problems.
Businesses
While former president Thabo Mbeki was seen as largely pro-business, Zuma has much closer links to labour.
However, many of his closest allies – including Tokyo Sexwale and Mathews Phosa – are prominent businesspeople.
But it is expected that Zuma will be much stricter with black economic empowerment.
Many in the new government are disgruntled about BEE – specifically that it only enriched a couple of people and that black South Africans still own less than 10% of the economy.
What are your theories of the South African economy under Zuma's rule? Share your thoughts in the box below.
