CAPE TOWN: South African President Jacob Zuma has instructed Finance Minister Pravin Gordhan to effectively return from an investor roadshow to Britain and the United States. The statement came without a reason.
“Zuma has instructed the Minister of Finance, Pravin Gordhan, and Deputy Minister Mcebisi Jonas to cancel the international investment promotion roadshow to the United Kingdom and the United States and return to South Africa immediately,” the President's Office said in a statement. A government source clarified that “the Presidency did not give permission for the trip.” Political analysts predict another bout of political uncertainty and possibly a cabinet reshuffle. “Any suggestion Zuma is interfering with Gordhan's business dealings will be a concern for investors and could signal political instability on the horizon,” said political analyst Daniel Silke.
It is widely known that the President has an uneasy relationship with Gordhan. Just last year, fraud charges against the FM had shaken financial markets and spurred accusations of a political “witch hunt”. The charges were, however, dropped in October. Markets were also affected last year when rumours of his removal began to do rounds. Gordhan has stated that it is Zuma's prerogative to fire him if he sees fit.
Moody's, which put South Africa on negative watch in its latest review, is due to review that rating on April 7, followed by S&P at the beginning of June. Gordhan first served as finance minister from 2009 to 2014. Zuma reappointed Gordhan in December 2015 after his decision to replace the respected Nhlanhla Nene as finance minister with a little-known politician triggered a steep selloff in South African assets.
