The rand has strengthened on the back of another shock announcement by president Jacob Zuma that Pravin Gordhan has now been re-appointed as the Minister of Finance – a position he held for five years (2009 to 2014).
"I have received many representations to reconsider my decision. As a democratic government, we emphasise the importance of listening to the people and responding to their views,” Zuma said in a statement.
"I have appointed Pravin Gordhan, the current minister of cooperative governance and traditional affairs, as the new minister of finance. Minister Gordhan will return to a portfolio that he held proficiently during the fourth administration."
David van Rooyen has now been appointed as the new minister of cooperative governance and traditional affairs.
Nomura Emerging Markets economist, Peter Attard Montalto, wrote in an opinion piece for the Mail & Guardian: “I’m in complete shock that you can have so many finance ministers in so few days. It’s obviously very welcomed, especially on the fiscal front. But to be perfectly honest, I think we’d rather have Nene back.”
This latest unexpected move has many analysts speculating that Zuma has lost some of his power and could be on his way out. The question remains as to what the full impact of these shock moves will be on SA’s economy and the country’s stability.
Gordhan will be sworn in today, after which he is expected to address the media.
