One analyst says the uncertainty of the last days is a political plus for South Africa.
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Last week, Zuma shocked the markets and nation when he announced that he had fired Nhlanhla Nene as finance minister and replaced him with the relatively unknown David van Rooyen.
“As a democratic government, we emphasize the importance of listening to people and to respond to their views”, Zuma said.
In a written announcement Sunday night, Zuma, who hours earlier had defiantly dismissed his critics before crowds of supporters, also reappointed as finance minister Pravin Gordhan, whose tenure in that position from 2009 to 2014 has been widely praised.
Backlash over Nene’s removal and van Rooyen’s appointment was swift and brutal, with markets panicking, BusinessDayLive reported.
Zuma acknowledged that he had given in to the condemnation of investors and political opponents, who called the series of changes in the finance ministry indicative of his reckless management of an economy in turmoil.
“If ANC members are worth their salt, they have to start looking very carefully and introspectively about our roles in this organisation and what we are giving consent to by allowing this president to operate as though he is completely unaccountable”, said Ms Hogan. Briefing journalists on Monday, he confidently displayed the economic nous that until last week made South Africa’s financial institutions respected both at home and overseas.
The country’s currency, the Rand, plummeted to new lows as the news broke.
“It is something that one has to earn and something that one has to sustain over a period of time”, said Mr Gordhan, who was also finance minister from 2009 to 2014.
Gordhan, returning for a second stint at the Treasury, was speaking at a media briefing in Pretoria on Monday. South Africa’s economy is seen growing by 1.4 percent in 2015 and 1.3 percent in 2016, according to the International Monetary Fund.
Clearly Zuma buckled under pressure from several quarters, including his own party and its alliance structures, civil society, business and opposition parties.
Nene, who economists say was an advocate of fiscal discipline, was replaced by a little known lawmaker – a move that freaked out markets and angered many South Africans.
Seeking to reassure markets, Gordhan told a televised news conference on Monday: “We take account of the concerns of the rating agencies and investors and we shall endeavor to protect the investment grade rating of South Africa”.
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“Part of that decision is that there will be a formal procurement process in accordance with South African law”.
