South Africa's ruling party decided on Tuesday to sack Jacob Zuma as head of state, two sources said, after marathon talks over the fate of a leader whose scandal-plagued years in power darkened and divided Nelson Mandela's post-apartheid 'Rainbow Nation'.

Markets have rallied since Cyril Ramaphosa narrowly defeated Jacob Zuma's ex-wife Nkosazana Dlamini-Zuma in an ANC leadership contest last month.

South Africa's President Jacob Zuma suffered a setback on Tuesday when a court ruled that the election of a faction loyal to him in his home province two years ago was invalid.

South Africa's ruling African National Congress said on Tuesday its executive committee had stood by President Jacob Zuma in a debate called after media reported that four ministers had demanded his resignation.

The Indian brothers who are accused of corrupting South African President Jacob Zuma lashed out Friday at "xenophobic and hate speech" against them, and denied benefiting from links to the government.