Indian-origin politician becomes South Africa’s Finance Minister

His replacement for less than a week, Mr van Rooyen was an unknown quantity for worldwide investors and his replacement sent the rand up nearly 5% on Sunday night.

In a statement on Sunday, the president said that after replacing Nene he had “received many representations to reconsider my decision”. “As a democratic government, we emphasize the importance of listening to the people and to respond to their views”.

“I have also chose to appoint the current Minister of Finance David van Rooyen as the new minister of cooperative governance and traditional affairs”, Zuma said.

Reacting to the news, DA federal leader Mmusi Maimane says the announcement is an admission that Jacob Zuma was “reckless and irrational to have fired Nhanhla Nene”.

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.

Backlash over Nene’s removal and van Rooyen’s appointment was swift and brutal, with markets panicking, BusinessDayLive reported.

“The markets will welcome back Gordhan to National Treasury”, Rand Merchant Bank’s currency strategist John Cairns said. The rand lost 9 percent against the dollar in the two days after van Rooyen’s appointment.

Dec 15 South Africa’s rand gave up some of the gains it had made following the appointment of a widely-respected finance minister, as investor confidence remained shaky on Tuesday after almost a week of financial turmoil.

President of South Africa, Jacob ZumaTHE South African government has renewed its determination to revive the country’s sliding economy. Gordhan’s reappointment signals a move by Zuma to strengthen Africa’s second largest economy.

“I will endeavor to ensure that every policy is directed at creating favorable investment conditions leading to the development of South Africa for all South Africans, not for the few”, said Rooyen.

Much speculation said that Zuma sacked Nene because of his reported refusal to approve the purchase of new Airbus jets in a controversial deal through a third party.

“If ANC members are worth their salt, they have to start looking very carefully and introspectively about our roles in this organisation and what we are giving consent to by allowing this president to operate as though he is completely unaccountable”, said Ms Hogan.

ANC spokesman Zizi Kodwa said rumors that Sunday’s meeting had discussed recalling Zuma from his position as the head of government weren’t true.