South Africa Cabinet: Nhlanhla Nene makes a comeback as finance minister

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In South Africa, a new Cabinet has been sworn in at parliament in Cape Town. President Cyril Ramaphosa announced the new Cabinet on Monday. And while there were some major changes, familiar faces are also part of the team. Nhlanhla Nene has made a comeback as the finance minister. Our correspondent Sumitra Nydoo has more.

Before joining the democratic government in 1994 Nhlanhla Nene was a union shop steward. He organized the first ever strike in the financial sector back in 1990. He later joined Parliament's Finance Portfolio committee, before going to the Treasury. Having a strong track record, markets are pleased that he's back.

LESIBA MOTHATA EXECUTIVE CHIEF ECONOMIST, ALEXANDER FORBES "When he got fired, SA was actually facing a hectic situation. Bank shares were falling, the Rand was free falling, the equity markets were declining. Bond yields were declining, a cocktail of what was a classical emerging market crisis."

SUMITRA NYDOO SOUTH AFRICA "Much has happened since 2015. Growth has dwindled, tax revenues have declined, unemployment has risen and so has poverty. The economy also suffered two rating downgrades in the last year."

DAVID SHAPIRO DEPUTY CHAIRMAN, SASFIN SECURITIES "We'll probably escape a downgrade by Moody's but I think S&P will be concerned and the outlook will be negative by Moody's - just worries about growth, worries about high unemployment and the lack of investment in this country."

But analysts believe Nene is the right person to manage country's finances and that he was strategically placed to work with his colleague and former Finance Minister Pravin Gordhan. Gordhan takes over the public enterprises portfolio. Together they will have to repair cash strapped state owned entities.

DAVID SHAPIRO DEPUTY CHAIRPERSON, SASFIN SECURITIES "It's going to need a huge amount of discipline to actually get those numbers. That's going to be up to Nene to actually impose it. And remember when he was there, he was the man who wanted to cut back on the motorcars and the traveling and everything. And I think that's where he's going to be strong."

LESIBA MOTHATA EXECUTIVE CHIEF ECONOMIST, ALEXANDER FORBES "He has earned himself the credibility of being not corruptible. He has earned himself a career as the one who will stick to his guns. And I think it's now time to shine. I think the environment will be very conducive for him to function."

Many are pinning their hopes on Nene who's best known for his no-nonsense approach and prudent fiscal discipline - which is exactly what the South African economy needs right now. SN, CGTN, JHB SA.