Zuma speaks out on why he axed Nene

Myeni is executive chairwoman of Zuma’s charitable trust, the Jacob Zuma Foundation.

Nene was also opposed to plans to spend possibly as much as $100 billion (65.71 billion pound) building a fleet of nuclear power stations, an investment most analysts said the country could not afford.

Trade union federation Cosatu has called the removal of Nhlanhla Nene as finance minister shocking and ill-timed.

JOHANNESBURG, Dec 10 (Reuters) – South African President Jacob Zuma’s sacking of his respected finance minister in favour of a relative unknown has shocked investors and emboldened critics who say the 73-year-old is driving the economy to ruin.

“We expect courage, innovation, prudence and clarity from the new Finance Minister”.

South Africa’s Economic Freedom Fighters party described the removal of Nene as a serious “pathological” crisis in the leadership and direction of the country.

The rand pared earlier losses after Zuma’s statement and was 1.7 percent weaker at 15.7349 per dollar as of 6:43 p.m.in Johannesburg after earlier falling to as low as 16.0543, a record. Prior to his appointment he served as a Whip of the Standing Committee on Finance as well as the Whip of the Economic Transformation Cluster in parliament.

ASISA indicated that it will be requesting an urgent meeting with the Presidency and the new Finance Minister, David van Rooyen.

Zuma said he had taken Nene out of Cabinet because he had been chosen as the country’s candidate for the post of head of the African regional centre of the New Development Bank. “They are trying to find a position that is senior enough for Nene to give a valid reason for why he was sacked”, Dawie Roodt, the chief economist at financial services firm Efficient Group said. A Democratic Alliance lawmaker, David Ross, said he had known Van Rooyen since 2009, and expected him to now be out of his depth, reported Bloomberg.

Mr Van Rooyen was former mayor of Merafong Municipality and a former North West provincial chairman of the South African Local Government Association.

Mr Zuma has been accused of protecting his own interests – and reinforcing the dominance of the ruling African National Congress (ANC) – by undermining South Africa’s institutions, including the finance ministry.

The party said it “noted” the decision, indicating it was not part of the reshuffle. Samson said while everyone’s instinct is to criticise Zuma, the country’s economic struggles necessitated a change at the treasury, and Van Rooyen should be given a chance.

“Zuma’s power is becoming more brittle and his lines of support stretched thinner and thinner”, said political analyst Nic Borain.