Following the appointment David van Rooyen, an A.N.C. lawmaker who has no experience in finance, the South African rand fell steeply against the dollar.
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“International investors are probably thinking: why didn’t the president make a much more considered decision in the first place?” he said.
Gordhan said the government was acutely aware of the financial impact of the change in ministers last week.
He also urged South Africans to “retain their optimism” as he would implement policies aimed at creating favourable investment conditions.
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.
Four days after appointing Van Rooyen, Zuma announced in another late-night statement that he was replacing the finance minister again.
Late last Wednesday, when Zuma fired finance minister Nhlanhla Nene after just 19 months in the position, the currency dropped to 15 rand to $1 dollar.
Reuters reports that Gordhan will address a news conference on Monday.
Bank executives, including Barclays Africa Group Ltd. Chief Executive Officer Maria Ramos, Investec Plc CEO Stephen Koseff and Goldman Sachs Group Inc. local head Colin Coleman, met with senior ANC officials Jeff Radebe and Zweli Mkhize to express their concern at Van Rooyen’s appointment, Radebe told reporters.
Following Nene’s dismissal the rand tumbled to a record low and bond yields jumped to a seven-year high. “As a democratic government, we emphasise the importance of listening to the people and to respond to their views”, Zuma said in a statement. South Africa’s currency recovered at the news that an experienced finance minister has been reinstated, after the president abruptly replaced two finance ministers in less than a week.
There were also calls for Zuma to be recalled as president of the country.
Meanwhile, the EFF leader Julius Malema, says the redeployment of Gordhan to the ministry of finance proves that South Africa is a joke.
“How the ANC can continue to defend Jacob Zuma, whilst admitting he caused a “bloodbath” in our economy, shows the level of denial in the governing party”, it said.
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.
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“We are going to ensure that the kind of discipline that government has demonstrated since 1994 is the kind of discipline that will continue and nobody needs to fear that we will move in any other direction”.
