JACOB Zuma’s sudden presidential sacking of Finance Minister Nhlanhla Nene has sent South Africa into a financial and economic pre-Christmas tailspin.
The negative effect of the decision on the Eastern Cape would be possible job losses, and further slow down of economic growth, warned the Border-Kei Chamber of Commerce director Les Holbrook, who spoke after consulting with the BKCOB leadership.
Analysts and media reports spoke of Zuma finally bulldozing the safeguard represented by national Treasury’s strict compliance of finance law.
The gate, it was feared, had been opened for potentially dubious deals.
Yesterday, #zumamustfall was trending on Twitter, indicating that public outrage was growing.
One Eastern Cape expert hinted at a clash over the cabinet’s desire to spend more ahead of next year’s local election.
There were concerns about further political incursions against compliance institutions and commissions.
The overnight appearance of unknown MP David “Des” van Rooyen as Nene’s replacement was greeted with dismay by international finance houses.
New York-based news corporation, Bloomberg, headlined its story: “David Who? Van Rooyen, and he’s South Africa’s new finance chief.
“If the appointment of South Africa’s new finance minister has alarmed investors, it may be because they’ve never heard of him,” Bloomberg reported.
Van Rooyen’s first ministerial words yesterday were: “Mine is a colossal assignment … all economic indicators are pointing to the south.”
He said the ANC’s first priority would be to make Treasury more “accessible”.
As the shock wave spread and the rand lost more than 5% of its value, Eastern Cape business entities insisted that the legal finance regime would remain intact regardless of who steered the ministry ship.
Mercedes-Benz SA spokesman Asanda Fongqo said they would build on their solid agreement with the ministry and signed with the Jobs Fund to turn MBSA’s technical centre into an artisan learning academy.
Spokeswoman for the East London Industrial Development Zone, Ayanda Ramncwana, said the success of the special economic zones programme depended on incentives and adequate funding mechanisms.
“Treasury is a critical enabler in that regard. The departure of Minister Nene is unlikely to impact on the ELidz.”
She said deputy minister Mcebisi Jonas “understands and supports our vision” and was a “valuable ambassador of the ELidz”.
Buffalo City Metro spokesman Keith Ngesi said any treasury changes would have to be gazetted after proper consultation. “We don’t anticipate abrupt changes,” he said.
BCM finance portfolio committee chairman, alderman John Badenhorst, said the metro received brilliant “coal face” support from Jonas.
“He is a local man. It remains to seen what Minister Van Rooyen does.”
Nene’s axing throws SA into turmoil
The negative effect of the decision on the Eastern Cape would be possible job losses, and further slow down of economic growth, warned the Border-Kei Chamber of Commerce director Les Holbrook, who spoke after consulting with the BKCOB leadership.
Analysts and media reports spoke of Zuma finally bulldozing the safeguard represented by national Treasury’s strict compliance of finance law.
The gate, it was feared, had been opened for potentially dubious deals.
Yesterday, #zumamustfall was trending on Twitter, indicating that public outrage was growing.
One Eastern Cape expert hinted at a clash over the cabinet’s desire to spend more ahead of next year’s local election.
There were concerns about further political incursions against compliance institutions and commissions.
The overnight appearance of unknown MP David “Des” van Rooyen as Nene’s replacement was greeted with dismay by international finance houses.
New York-based news corporation, Bloomberg, headlined its story: “David Who? Van Rooyen, and he’s South Africa’s new finance chief.
“If the appointment of South Africa’s new finance minister has alarmed investors, it may be because they’ve never heard of him,” Bloomberg reported.
Van Rooyen’s first ministerial words yesterday were: “Mine is a colossal assignment … all economic indicators are pointing to the south.”
He said the ANC’s first priority would be to make Treasury more “accessible”.
As the shock wave spread and the rand lost more than 5% of its value, Eastern Cape business entities insisted that the legal finance regime would remain intact regardless of who steered the ministry ship.
Mercedes-Benz SA spokesman Asanda Fongqo said they would build on their solid agreement with the ministry and signed with the Jobs Fund to turn MBSA’s technical centre into an artisan learning academy.
Spokeswoman for the East London Industrial Development Zone, Ayanda Ramncwana, said the success of the special economic zones programme depended on incentives and adequate funding mechanisms.
“Treasury is a critical enabler in that regard. The departure of Minister Nene is unlikely to impact on the ELidz.”
She said deputy minister Mcebisi Jonas “understands and supports our vision” and was a “valuable ambassador of the ELidz”.
Buffalo City Metro spokesman Keith Ngesi said any treasury changes would have to be gazetted after proper consultation. “We don’t anticipate abrupt changes,” he said.
BCM finance portfolio committee chairman, alderman John Badenhorst, said the metro received brilliant “coal face” support from Jonas.
“He is a local man. It remains to seen what Minister Van Rooyen does.”
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