Deputy finance minister Mcebisi Jonas, who was overlooked as Nene’s successor, will support Van Rooyen, Zuma said, pointing out that Jonas “carries many years of experience in the economic cluster”.
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In a statement, Zuma said he received many proposals to reconsider his decision to install van Rooyen, a former mayor and member of parliament who served on financial committees.
South Africa’s rand weakened to a new record low on Friday, slumping more than 3 percent in a sell-off by investors, while stocks also fell. The rand dropped to below R16 to the USA dollar and the interest rate on government bonds rose dramatically.
“I have appointed Pravin Gordhan, the current minister of Cooperative Governance and Traditional Affairs (COGTA) as the new minister of finance“.
The main opposition party, the Democratic Alliance, called Zuma’s decision “reckless and irrational”, saying Nene had been sacked because he opposed “excessive spending” on a proposed deal with worldwide energy companies to build nuclear power stations and on new aircraft purchases for South Africa’s struggling national airline.
Andrew Rissik, managing director of the foreign currency trading unit of London-based wealth manager Sable Group Ltd., has moved 120 million rand ($7.6 million) overseas for clients since Nene’s removal, he said on Friday.
“I would like to thank the former Minister of Finance, Nhlanhla Nene for his sterling contribution to the National Executive and to taking forward the goals of building a better life for all our people”. “Minister Gordhan will return to a portfolio that he had held proficiently during the fourth administration”.
Many other local media had also speculated Mr Nene might be moved out after he rebuked Ms Myeni.
Even some supporters of the African National Congress (ANC), Nelson Mandela’s erstwhile liberation movement that has ruled since the end of apartheid in 1994, expressed dismay about Wednesday’s appointment of a Zuma loyalist to the crucial post.
Downgrades jack up South Africa’s borrowing costs and flow through to the banking system.
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Significant erosion of ANC control in metropolitan powerbases could strengthen Zuma’s opponents, especially if South Africans blame him for the floundering economy.
