The markets react harshly to Nene sacking

David Van Rooyen replaced Nhanhla Nene, who was sacked on Wednesday evening by President Jacob Zuma. The move was condemned by many, with some questioning the logic behind Zuma’s decision. “I have decided to remove Mr Nhlanhla Nene as minister of finance, ahead of his deployment to another strategic position,” Zuma said in a statement. The markets reacted with shock to the news of Nene’s appointment at the time, but not nearly to the extent that greeted the announcement that he would be replaced by Van Rooyen. The new finance minister takes over the portfolio when the economy is in a much more fragile state and when a firm hand is needed more than before.

Van Rooyen, 47, has been a loyal member of the ANC for decades but has nowhere near the experience of his predecessor to boost his credibility – and the markets have judged him harshly. DA finance committee member Alf Lees said Van Rooyen’s lackluster performance on the committee did not inspire confidence that he had what was required to be finance minister. “He is a lightweight within the ANC,” Lees said. Van Rooyen served as the Whip of the Standing Committee on Finance and as Whip of the Economic Transformation Cluster.

He was also a former executive mayor of Merafong Municipality and a former North West provincial chairperson of the South African Local Government Association. “I have full confidence that he will be able to execute the task ahead of him,” finance standing committee chairman Thaba Mufamadi said. “He is focused, with close attention to detail and is a pragmatist. He can be very stubborn.” According to DA MP David Ross, Van Rooyen always subordinated strictly financial questions to the ANC’s political agenda.

This was confirmed by Van Rooyen himself yesterday after his swearing in at the Union Buildings in Pretoria. He emphasized that the government’s development agenda would be the axis of policy making. He also said he wanted the Treasury to become well known to people living in rural areas, which is arguably not a top priority in these economically difficult times.

 “I was surprised that someone who did not leave any great mark on the area could be appointed finance minister,” Shilowa said. “He was ineffective and did not make a difference so how can he make a difference for the whole country? “However, Johan Swartz, a DA councilor in Merafong since 2000, had more positive views. “He was a very solid character with good leadership qualities,” Swartz said. “I think he was one of the best executive mayors we have had and I have seen them all.”

There has been speculation that more reshuffles were on the cards with Radebe, Minister of Higher Education and Training Blade Nzimande and Trade and Industry Minister Rob Davies said to be in the firing line. Radebe however refused to comment on the issue, and said the decision ultimately rested with Zuma.

Minister of Health Aaron Motsoaledi jumped in to respond to the question.

“At no stage is Cabinet ever told if there is going to be a reshuffle. We learn about it as you do. It is never announced to Cabinet. We are appointed as ministers at the behest of the president and we are removed if he decides otherwise he does,” he said.

Van Rooyen has diplomas in business management and municipal governance; certificates in municipal governance, finance, economics and public finance, investment analysis and portfolio management; and a master’s degree in public development and management as well as an MSc in finance (economic policy) from the University of London.