Markets have reacted with cautious optimism to President Jacob Zuma’s appointment of Pravin Gordhan as South Africa’s new Minister of Finance – the third minister to hold the key portfolio in four days.
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South African markets have rallied after President Jacob Zuma re-appointed Pravin Gordhan as finance minister, although the move did little to quell criticism of the country’s leader. “As a democratic government, we emphasise the importance of listening to the people and to respond to their views”, the Presidency said in a statement.
Gordhan was replaced with Nene in 2014 and moved to the post of minister for cooperative governance and traditional affairs.
“Although Nene has a lower favourability rating overall than president Zuma, this is expected as he only started in the position of minister of finance in May 2014 (after the most recent general election), thus South Africans were taking some time to get to know him”, Ipsos said.
On Monday, BusinessDay newspaper reported that Cabinet approved a deal for the proposed nuclear power program on the day Nene was sacked.
Zuma’s unexpected announcement sent the rand surging almost 5 percent Sunday evening, with added gains Monday, strengthening another 4 percent to trade at 15.1561 rand to the dollar, BusinessDayLive reported.
“Part of that decision is that there will be a formal procurement process in accordance with South African law”.
“Rumors about a romance and a child are baseless and are created to cast aspersions on the President”, Zuma’s office said in a statement dismissing a list of rumors.
His replacement for less than a week, Mr van Rooyen, was a little-known MP. “So I am walking into a new job, but there are old decisions that have been taken”, says Gordhan.
Monday, Gordhan promised he would set the nation back on a course of “sound fiscal management”, something it badly needed amid falling commodity prices, sky-high unemployment and increasing political turmoil.
The Economic Freedom Fighters said Gordhan’s re-appointment is a joke, and no amount of explanation can save the ruling ANC from this embarrassment.
The South African Property Owners Association (Sapoa) expressed their disappointment on the axing of Nene and was deeply concerned about this latest rounds in the economy.
“International investors are probably thinking: why didn’t the president make a much more considered decision in the first place?” he said.
Yesterday Gordhan hit the ground running, tacitly warning Myeni that a situation where state-owned entities are “toys for personal gain” will not be allowed.
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Opposition leaders called for a vote of no confidence in the president when parliament returns in January.
