According to a SACC statement, Zuma’s move to fire Nene and replace him with a novice MP David van Rooyen to guide the Treasury as minister was “financially irresponsible” on the part of the President.
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Gordhan’s current position as Minister of Cooperative Governance and Traditional Affairs, where he was overseeing local government, will be taken over by Van Rooyen, who was effectively Finance Minister for just four days.
In my view, President Zuma always lets the people underestimated his academic qualifications.
The blue-chip JSE Top-40 index dropped 0.9 percent to 43,843, while the broader All-share index was off 1.12 percent at 48,438 points by 10.33am GMT.
Pravin Gordhan, who served as finance minister from 2009 to 2014, was re-appointed to the role late on Sunday to try to calm markets after the rand fell to an all-time low of 16 to the dollar when Nene was sacked.
“Minister Gordhan will return to a portfolio that he had held proficiently during the fourth administration”, the Presidency said.
Mr Gordhan has a hard job with unemployment now above 25%, growth sluggish and credit rating agency Fitch recently downgrading South Africa to one notch above “junk” status. Gordhan steered the economy through the first recession in 17 years, while fending off pressure from labor unions to increase spending.
With Gordhan now back in the finance ministry, Van Rooyen will become the cooperative governance minister, according to Bloomberg.
“This is positive in the sense it shows Zuma’s power is more constrained than his actions last week suggested”, Peter Attard Montalto, an analyst at Nomura International Plc, said by text message on Sunday.
South Africa is gearing up for local elections next year where the ruling African National Congress (ANC), is expected to face stiff competition from the opposition Democratic Alliance in urban areas, including the economic hub of Johannesburg.
Questions have been raised as to why those in the ANC leadership structures have merely kept quiet and watched while their leader and the country’s president destroys the country and the party.
“Nene was not prepared to be used as Mr. Zuma’s own petty cashbox”, Ian Cruickshanks, chief economist with the South African Institute of Race Relations, told AFP. “I am therefore privileged to address you today”, he said. He was appointed on Wednesday and sworn in on Thursday amid mixed reactions from the country.
Barbara Hogan, an ANC veteran and former minister in Mr Zuma’s cabinet, said the party should consider “recalling” – or sacking – the president. They also described his latest appointment as a sign Zuma was losing control.
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But Reserve Bank Governor Lesetja Kganyago said there were no plans for a special session because South African capital markets were deep enough to withstand shocks of this magnitude.
