In an economic insight note, Nomura research analyst Peter Attard Montalto said that president Zuma learned an important lesson from “NeneGate” – but it wasn’t a lesson on the economy and the disastrous impact of firing the country’s financial lead.
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The rand fell to the lowest in nearly four weeks against the dollar on Tuesday and was 1.4 percent weaker at 14.2038 by 6:01 p.m.in Johannesburg on Wednesday.
“I am here to pledge my total support to the minister of finance”, said Ramaphosa, who has been working closely with the finance minister in unlocking growth in the economy.
A number of concerned civil society organisations gathered in front of the Hawks offices to protest against the events surrounding the Finance Minister. Opposition parties in Parliament have also backed Gordhan, saying he was standing up to Zuma for trying to capture the National Treasury. Police have declined to comment.
Shares in insurance provider Santam ended 1.5 percent higher to 223.5 rand after the company acquired an insurance support services firm, Rand Merchant Investments’ structured insurance division (RMB-SI), for an undisclosed amount.
Business leaders have rallied around South African Finance Minister Pravin Gordhan as he faces police investigations into allegations that he oversaw the establishment of an illicit investigative unit during his tenure as head of the national tax agency.
Analysts claim tensions between the two started after Gordhan opposed Zuma’s plan to invest $60 billion in the construction of several nuclear power stations.
Gordhan has pledged to rein in government expenditure to limit rising inflation, narrow a gaping budget deficit and appease ratings agencies considering cutting South Africa to “junk” status in reviews expected by December.
Various reports suggested a police unit has ordered finance minister Pravin Gordhan to report to its offices.
The Treasury confirmed the Hawks had contacted Gordhan and that he was seeking legal advice.
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“As the ANC Youth League, we call on all those who are involved in this investigation to reduce public spats and engage in a manner that any other citizen would have been treated and responded”, Mkhize said.
