South Africa: Zuma's About-Turn Will Damage Him, Says Analyst

Pravin Gordhan, Minister of Finance until last year's election, has been given his job back.
13 December 2015

South Africa's position on world markets "should rally back very strongly" in response to President Jacob Zuma's about-turn on the firing of his finance minister, but there will be "a permanent loss of trust" in his leadership, says emerging markets economist Peter Attard Montalto.

In comments in response to Zuma's shock decision to replace the finance minister he appointed last Thursday, Montalto said that Pravin Gordhan, who was finance minister until the 2014 elections and has now been re-appointed, is "very market friendly, fiscally conservative and a welcome move."

He added that his understanding was that there was such "gloom and pessimism" at the firing on Wednesday of Nhlanhla Nene as finance minister, from civil society, business, unions and others, that members of the ruling African National Congress lobbied internally and forced the change of course.

He suggested that while the firing of Nene had looked like a victory for those who sought personal benefit from government tenders, the fact that Zuma was forced to reverse his decision was "a very damaging move for him personally. It may also speak to a more nuanced and split of ANC with the left and conservative centre left able to still have more influence that thought before."

AllAfrica publishes around 500 reports a day from more than 100 news organizations and over 500 other institutions and individuals, representing a diversity of positions on every topic. We publish news and views ranging from vigorous opponents of governments to government publications and spokespersons. Publishers named above each report are responsible for their own content, which AllAfrica does not have the legal right to edit or correct.

Articles and commentaries that identify allAfrica.com as the publisher are produced or commissioned by AllAfrica. To address comments or complaints, please Contact us.