But his sacking may now persuade investors and voters that South Africa is heading towards fiscal and political instability. “Holy wow. Midnight ministerial massacre in South Africa”, former U.S. Ambassador Patrick Gaspard tweeted.
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Analysts have warned that dismissing Gordhan and other key cabinet ministers could cause chaos, a CNNMoney report said.
Gordhan became South Africa’s finance minister after Zuma’s abrupt decision in December 2015 to fire Finance Minister Nhlanhla Nene and replace him with a relatively unknown figure unsettled markets and prompted a national outcry.
Radical economic change in the political language of ANC means the redistribution of wealth, land and opportunity to the black majority. Gordhan was replaced with Home Affairs Minister Malusi Gigaba, while Jonas’ position will from now on be filled by Sfiso Buthelezi, former businessman and fund manager and currently an ANC MP who has served on the standing committee on finance.
The Chamber of Mines states the move that can only be described as freaky and hard to understand, particularly as it comes at a time when South Africa’s sovereign credit rating is at risk and investor confidence in the economy is at a very low ebb. “Regardless of which individual is responsible for which portfolio, what matters most should always be the interest of the ANC and country above any other narrow interest”, says Mkkhize.
“Our souls are not for sale. Why would we do that”, Gordhan said on Friday.
It’s undoubtedly the clearest sign that daggers have now been drawn, and it’s about to get bloody among South Africa’s most powerful politicians. For years, the President has been dogged by allegations of corruption.
“Debt levels have increased, the budget deficit remains under pressure, and the government’s tax take as a proportion of gross domestic product is projected to reach a record level”, Cronje said.
South Africa’s Communist party, a historic ally of the ANC, called on Zuma to resign.
“What should the public do? Organize!” he said, to applause.
Treasury staff clapped and sang revolutionary songs in an emotional sendoff for Gordon on Friday. The sacked minister claimed the trip was to reassure rating agencies and worldwide investors about the stability of the country.
Zuma’s purge further divided the governing African National Congress, with half the party’s top six leaders strongly opposed to Gordhan’s dismissal.
The leaked “report” was short and seemed amateurish.
Gordhan added that the staff at Treasury will commit to a proud tradition of managing and maintaining macro-economic stability in the country.
Deputy President Cyril Ramaphosa was among high-ranking officials in the ruling party who expressed their support for the finance minister.
The ouster of Gordhan poses significant risks for Zuma and the ANC. But they will need a significant portion of ANC politicians to turn their back on the President.
There are growing calls for Zuma to step down.
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Gordhan past year faced fraud charges that were criticised as a move to oust him by Zuma’s associates. And for the first time, I also want to say to you what I said when I was asked to take this job? The party’s tradition of debate was ignored when Zuma presented a list “developed somewhere else”.
