Matthew le Cordeur
Cape Town – The rand immediately improved after the reappointment of Pravin Gordhan as Finance Minister on Sunday, after a week of market turmoil followed a shock move by President Jacob Zuma.
Zuma reshuffled his cabinet a second time in five days on Sunday, reappointing Gordhan after reconsidering his decision to replace Nhlanhla Nene with unknown lawmaker David van Rooyen on Wednesday.
Zuma’s dramatic turnaround occurred after the rand tumbled to historic lows and bond yields jumped the highest it’s been in seven years, following his decision to axe respected African National Congress (ANC) member Nene.
Analysts and politicians believe the president was caught off guard by the market reaction, as well as intense reaction from South Africans from all sectors, including from within his own party.
There was even a #zumamustfall campaign, as well as a planned march and a petition to remove the president from power.
Zuma said in a statement late on Sunday that as a democratic government, “we emphasise the importance of listening to the people and to respond to their views”.
“I have received many representations to reconsider my decision,” he said.
Zuma first appointed Gordhan as Finance minister in 2009, succeeding Trevor Manuel. However, he was replaced by Nene in 2014 and “demoted” to the Department of Co-operative Governance and Traditional Affair.
It is here where Van Rooyen will find his new home as minister, as Zuma did a switch between the two on Sunday.
At the time, analyst Peter Attard Montalto was quoted in the Mail & Guardian as saying, “this is a tiny ministry with little power".
Reaction from politicians has been one of caution.
Playing Russian roulette