In one ill-considered action – the firing of Nhlanhla Nene as finance minister, President Jacob Zuma has done more damage to the South African economy than what occured in the wake of the global financial crisis of 2008.
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“Zuma has appointed him because he knows that Van Rooyen will not stand up to him when he wants to do the wrong things”, spokesman Mbuyiseni Ndlozi said in a statement.
The rand firmed to 15.77 per dollar from 16.02 after Zuma’s comments.
Zuma said former finance minister Nhlanhla Nene had been nominated for the post.
“Foreigners are getting assets out”, he said.
Analysts had speculated that the bank may call an earlier meeting to increase interest rates to protect the rand.
Government also remained committed to providing support to state-owned companies in a fiscally sustainable manner, including South African Airways.
Barclays Africa plummeted as much as 12 percent, but later traded 4.6 percent lower at 125.71 rand, while FirstRand as lost 8.7 percent to 35.42 rand and Standard Bank fell 6 percent to 99.55 rand by 1340 GMT.
Even some supporters of the African National Congress (ANC), Nelson Mandela’s erstwhile liberation movement that has ruled since the end of apartheid in 1994, expressed dismay about Wednesday’s appointment of a Zuma loyalist to the crucial post.
Van Rooyen holds a Master’s Degree in Finance, majoring in Economic Policy from the University of London and a certificate in investment analysis and portfolio management from Unisa to mention a few.
Van Rooyen is seen as likely to back huge outlays on a nuclear station building programme and the troubled state airline as well as public spending ahead of local elections next year.
Citing an unnamed government official, Business Report newspaper reported this week that Nene’s dismissal could be linked directly to his fall-out with the SAA board.
“The shock announcement… was devoid of any logic and justification, especially when (Zuma’s) government is meant to be doing everything possible to restore confidence and growth”.
“At no stage is Cabinet ever told if there is going to be a reshuffle”.
His time as a small-town mayor is partly remembered for when his house was burnt down by a mob over provincial boundary changes that local people thought would disadvantage them.
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Van Rooyen said he would ensure every policy is “directed at creating favourable investment conditions” for the country. “I take this job at a very challenging time”.
