Grave concern as Zuma fires finance minister

CAPE TOWN/JOHANNESBURG.- Finance Minister Nhlanhla Nene may be just the first casualty in a series of high-profile victims of President Jacob Zuma’s latest cabinet shake-up.

There is strong speculation in senior ANC circles that Minister in the Presidency Jeff Radebe and Trade and Industry Minister Rob Davies are next in line for the axe, while the job of Higher Education Minister Blade Nzimande hangs in the balance.

Meanwhile, the Association for Savings and Investment South Africa (ASISA) has warned that the shock removal of Nene as finance minister is worrying.

“(It) is of grave concern to the business sector of South Africa, especially as it comes only days after the downgrade of SA’s credit rating to just one level above speculative grade or junk,” it said in a statement.

Standard & Poor’s and Fitch left South Africa’s debt shy of junk status on Friday last week, citing the slowing economy and rising debt and assigning a stable outlook to the rating.

Fitch said yesterday Nene’s departure raised “more negative than positive questions” for the country.

“As business in South Africa, we are particularly concerned that the shock announcement comes at a time when our country and our economy are in desperate need of continuity and consistency of policy.”

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

It hopes “to seek firm assurances that fiscal discipline will remain the priority and that efforts to make South Africa more investor friendly will continue to be pursued vigorously”.

Meanwhile, the South African Chamber of Commerce and Industry (SACCI) called on President Zuma to explain why Nene was recalled “as a matter of priority”.

“For SACCI and the business community at large, the consistency of our macro-economic policy environment is of paramount importance for trade and investment. Any major decisions which have a material impact on creating confidence must be weighed up carefully,” it said. – Business Report/Fin24.