South Africa - 02

South Africa: Implications of Zuma’s Cabinet Reshuffle

President Jacob Zuma’s late-night reshuffle on 30 March saw both Minister of Finance Pravin Gordhan and his deputy Mcebisi Jonas ousted from the Department of Finance and Tina Joemat-Pettersson replaced with Mmamoloko Kubayi as minister of energy. A total of 10 ministers and 10 deputy ministers were reshuffled. The replacement of Gordhan and Jonas with less-independent and less-credible ministers will be damaging to investor confidence and significantly increases the risk of a credit rating downgrade. Under Gordhan, the Treasury had maintained a strong line against the unfettered demands for resources to support growing patronage during Zuma’s presidency.

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