Rand recovers as Zuma reappoints Gordhan as Finance Minister
President Jacob Zuma on Sunday night reversed his decision to appoint David van Rooyen minister of finance and appointed former finance minister Pravin Gordhan back in charge of the National Treasury instead.
Zuma said in a statement that after he had appointed Van Rooyen, he had “received many representations to reconsider my decision”.
“As a democratic government, we emphasise the importance of listening to the people and to respond to their views,” Zuma said.
After serious consideration and reflection, he had “appointed Mr Pravin Gordhan, the current minister of co-operative governance and traditional affairs as the new minister of finance”.
Gordhan would return to a portfolio that he had “held proficiently during the fourth administration”.
He would lead government again in the following:
– Ensuring an even stronger alignment between the budget and the medium-term strategic framework (MTSF) in the interest of stimulating more inclusive growth and accelerated job creation while continuing the work of ensuring that South Africa’s debt was stabilised over the medium-term;
– Promoting and strengthening the fiscal discipline and prudence that had characterised government’s management of public finances since the dawn of freedom;
– Working with the financial sector so that its stability was preserved under the broad umbrella of the Twin Peaks reform;
– Ensuring that the National Treasury was more acceptable to all sections of society; and
– Adherence to the set expenditure ceiling while maintaining a stable trajectory of the debt portfolio, as set out in the February 2015 Budget.
Zuma said he had also decided to appoint Van Rooyen to replace Gordhan as co-operative governance and traditional affairs minister.
“Mr Van Rooyen, a former executive mayor, will also be bringing to COGTA the finance and economic sector background gained in serving in the finance portfolio committee and economic transformation cluster as whip in National Assembly.
“He has been mandated to take forward the back to basics programme and further improve co-operation between the three spheres of government. I wish both ministers all the best in their new deployments,” Zuma said.
Markets smiling at the news
The Rand has meanwhile recovered 80c to the US Dollar following Gordhan's appointment. Gains have been seen to R15.09/$ from a R16/$ breach in nervous trade on Friday.