Zuma re-appoints Pravin Gordhan as Finance Minister

South African President Jacob Zuma has replaced newly appointed Finance Minister David van Rooyen with the more experienced Pravin Gordhan in a surprise Sunday night announcement.

Zuma late on Sunday restored a widely respected Gordhan to the ministry in a dramatic U-turn that gave Africa’s most advanced economy its third finance minister in a week.

In attempts to assuage fears of investors, Gordhan said the government will “protect all those invested in the South African economy”. “I am therefore privileged to address you today”, he said. The markets responded well to a familiar face.

Mr van Rooyen was in his new position just four days when the public outcry against his appointment, combined with the crash of the South African currency and markets, prompted Mr Zuma to do an about-turn on his selection. Gordhan’s reappointment signals a move by Zuma to strengthen Africa’s second largest economy. “Both these decisions have an impact on the poor in South Africa”.

Zuma’s timing, leadership and judgement in firing Nene drew criticism from opposition parties, the finance sector and citizens on social media. And was Nene fired for not allowing it, or for something else? The airline’s chairwoman, Dudu Myeni, is a close ally of Zuma.

The markets cheered Gordhan’s appointment, the rand bounced back 5% against the dollar and stocks recovered.

Mr Nene’s reluctance to approve a plan to build several nuclear power stations at a cost of up to $100bn is thought to have contributed to his removal as finance minister. BBC also stated that Gordhan was “one of the main negotiators in the drafting of South Africa’s democratic constitution from 1991-1994”. “South Africa is not safe in the hands of Jacob Zuma, if he can take such decisions that are so injurious to the country”, said Prince Mashele, a political analyst and co-author of “The Fall of the ANC”. He adds that now that Gordhan knows that some of these blunders occurred during his term, he would perhaps work harder to ensure that they do not recur.

According to him, “We will stay the course of sound fiscal management, our expenditure ceiling is sacrosanct”.

The rand also benefited from selling of the greenback as local traders sought to unwind long-dollar positions ahead of a meeting of the U.S. Federal Reserve, where its policy committee (FOMC) is expected on Wednesday to raise interest rates.

When asked, “How well do you think President Zuma is doing his job?”, less than half of adult South Africans believed Zuma was doing his job very or fairly well.

I have received many representations to reconsider my decision.