The South African Property Owners Association (Sapoa) has expressed their disappointment at the decision by President Jacob Zuma to remove Finance Minister Nhlanhla Nene.
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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.
By 1025 GMT the rand had weakened 2.42 percent to 15.8500 per dollar, pulling slightly back from a slide to the psychologically crucial 16.00 level.
Responding to Zuma’s Wednesday announcement that Nene would be moved to “another strategic position” and Van Rooyen would take the job with confusion, many people are shocked and disappointed. “However, his decision to dismiss Minister Nene and to appoint in his place an inexperienced and virtually unknown backbencher, David van Rooyen, is a matter for the deepest concern”, it said.
South Africa’s main opposition leader Mmusi Maimane criticised the sacking on Twitter saying that Mr Zuma “has again proven himself to be a President incapable of making the right decisions”.
The South African Chamber of Commerce and Industry (SACCI) said it was concerned about Zuma’s removal of Nene.
“We identified looser fiscal policy that resulted in a failure to stabilise the ratio of government debt/GDP as a rating sensitivity when we downgraded South Africa to ‘BBB-‘/Stable last week”, the note said.
Both independent prices, such as bond yields, and the Rand exchange rate are pricing in a bleak 2016 for South Africa.
“The change [in finance minister] would be relevant to our sovereign rating assessment if it led to a loosening of fiscal policy, such as an upward revision to the government’s nominal expenditure ceilings, and a faster increase in government indebtedness”, Fitch said.
Having relatively liquid and open markets at such junctures is a hindrance for emerging economies like South Africa since they make it easier for investors to bail.
He is a former Umkhonto we Sizwe operative, and has held various leadership positions in Congress of South African Students, the United Democratic Front and the National Union of Mineworkers.
Even the stars of recent South African governments struggled to initiate structural reforms that might have made inroads into chronic unemployment and the apartheid legacy of racial and income inequality. “When I saw him on TV this morning, I was so happy”, said Mantembe Gladys as she barbecued chicken pieces and feet to sell on the side.
Van Rooyen was sworn in on Thursday. “On the contrary, his appointment stands to cost South Africa”, Kruger said.
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She said that during his seven years in power, Zuma had destroyed the carefully cultured reputation for competent government built up since the ANC and Nelson Mandela took over from the white-minority government in 1994.
