Zuma orders Gordhan’s urgent return from international investment roadshow, sparking reshuffle fears
The presidency has reportedly halted an international investment roadshow currently being held by finance minister Pravin Gordhan and his deputy Mcebisi Jonas, instructing the two officials to return to South Africa urgently.
According to a report by the Daily Maverick, the finance officials are currently on a ‘non-deal international investor roadshow’, which is taking place in the the USA and in the UK. The USA leg of the roadshow has reportedly been cancelled.
National Treasury said the roadshow was part of its standing strategy to “engage investors on a regular basis”, and the aim of the latest trip was to “provide an update on the most recent developments, engage constructively with investors and share government’s thinking behind its’ latest policy proposals.”
The Minister’s delegation includes his Deputy Minister Mcebisi Jonas, Director General Lungisa Fuzile, key National Treasury officials, business and labour.
The reason for the cancellations appears to be on the grounds that the roadshow was not authorised – however, the timing and ‘urgency’ of the message has sparked fears that a widely-expected cabinet reshuffle appears to be imminent, the Daily Maverick said.
Analysts have been anticipating the reshuffle for a long time, with the last week in March/early April being seen as the most opportune time, giving Zuma the chance to bring former AU chair and ANC presidential hopeful Nkosazana Dlamini-Zuma back into government.
However, it is understood that Zuma will also use the opportunity to tighten up his ranks, and to push out those who are seen as opposed to him – including Gordhan and Jonas, among others.
Research analysts at Nomura hold that Gordhan’s position as finance minister may be safe from the expected reshuffle – as removing him would hold dire consequences for the economy – but note his security in the position has diminished over the past few months.
Gordhan is seen as a blockade to Zuma’s transformation goals for the country. However, as head of the Public Investment Corporation, the position of deputy finance minister could provide Zuma with enough room to accomplish those goals, Nomura said.
Thus, while Gordhan could be safe, it is less likely that deputy finance minister Mcebisi Jonas’ position will be secure. Jonas is also the main piece of the ‘state capture’ scandal, which has been a constant headache for the president and his friends, the Gupta family.
The rand reacted negatively on the news, with the currency weakening sharply against the dollar, moving from its early morning levels of around R12.34 to the dollar, to R12.51 after the ‘recall’ hit local media.
Loading ...