Gordhan who previously served as the minister from 2009 to 2014, was reappointed finance minister by President Jacob Zuma Sunday, Dec. 13, 2015 after firing Nhlanhla Nene and then David van Rooyen who was sworn in last week, succeeding Nene.
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On December 9, Zuma dismissed Nene and appointed David van Rooyen, a little known MP, to replace him.
But the president said in a statement late on Sunday that his response was a democratic move that emphasized the importance of listening to the people and to respond to their views.
South Africa’s rand extended its rally on Tuesday from the previous session, firming to well below the 15 rand mark against the dollar following the appointment of the widely respected Pravin Gordhan as finance minister.
“I wish both ministers all the best in their new deployments”, Zuma said.
“It’s fascinating that when a Monday morning comes along all those numbers have changed in a very positive sense”, said Gordhan. His appointment sparked widespread outrage and a slump in the rand to a historic low of more than 16 to the United States dollar.
Former Health Minister Barbara Hogan on Friday called on Mr Zuma to resign. The country narrowly missed entering a recession with less than 1 percent growth, said Statistics South Africa.
The selection of van Rooyen, an ANC lawmaker who has no experience in finance and was an unknown political figure nationally, led to a sudden drop in the rand, South Africa’s currency, and added to doubts among investors and credit-rating agencies about the soundness of South Africa’s financial management.
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.
The brief tenure of Mr van Rooyen and the uncertainty it caused may have damaged South Africa’s reputation further, analysts say.
South Africa’s Economic Freedom Fighters party described the removal of Nene as a serious “pathological” crisis in the leadership and direction of the country.
“International investors are probably thinking: ‘Why didn’t the president make a much more considered decision in the first place?'” he said.
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South Africa’s banknotes, which features an image of former president Nelson Mandela on the front in Pretoria November 6, 2012.
