Nene returns as Ramaphosa revamps South Africa's cabinet

World
Europe

South African President Cyril Ramaphosa announced a sweeping reshuffle on Monday that included re-appointing Nhlanhla Nene, who was sacked by Jacob Zuma, as finance minister.

Ramaphosa stamped his mark on the presidency with his choice of Nene, whose sacking from the same role began the revolt that eventually ousted former leader Zuma. David Mabuza, the current premier of Mpumalanga province, was controversially named as deputy president.

Sweeping changes

Ramaphosa announced a total of 30 changes to minister and deputy minister positions after graft-tainted Zuma was forced to resign by the ruling African National Congress (ANC) party earlier this month.

"In making these changes, I have been conscious of the need to balance continuity and stability with the need for renewal, economic recovery and accelerated transformation," Ramaphosa said, reading a brief televised statement.

Several Zuma allies were demoted or sacked – but Zuma's ex-wife Nkosazana Dlamini-Zuma was appointed minister to the presidency, responsible for planning, monitoring and evaluation.

Nkosazana Dlamini-Zuma has been appointed minister to the presidency. /VCG Photo

Ramaphosa narrowly beat Dlamini-Zuma in a fierce contest to be elected the new leader of the ANC in December. Dlamini-Zuma was Zuma's favored candidate to succeed him as president, with analysts saying she may have shielded him from prosecution over corruption charges.

A balanced reshuffle?

Nene's return to the finance ministry was a clear repudiation of Zuma's reign, and will be warmly welcomed by many businesses and international investors.

In December 2015, Zuma sacked the widely-respected Nene and replaced him with a little-known lawmaker, triggering panic among investors and a sharp drop in the rand currency. Just four days later, Pravin Gordhan was appointed to the role to calm the markets.

Nhlanhla Nene, South Africa's reappointed finance minister. /VCG P‍hoto

The chaos was seen as reflecting Zuma's failure to implement a consistent economic policy – and a sign of the allegedly corrupt influence of the Gupta business family, who were reported to oppose Nene.

"A business-friendly cabinet reshuffle is counter-balanced by the retention of Zuma-era appointees," economic analyst Daniel Silke said on Twitter, describing it as "a partial cleansing of the Zuma-era rot."

Mabuza's appointment as deputy president is likely to stir controversy due to his reputation as a tough hardliner and accusations of links to political violence. The opposition Democratic Alliance party said Ramaphosa choosing Mabuza "undermines the integrity of his stated commitment to fight corruption and rebuild from the tatters of the Zuma decade."

Cyril Ramaphosa (R) embraces David Mabuza, South Africa's new deputy president. /VCG Photo

Razia Khan, chief economist for Africa at Standard Chartered, said Ramaphosa's cabinet was a mixed bag. "Markets will react positively to the appointment of Nene as finance minister and Gordhan as public enterprise minister. They are seen as key figures in key portfolios where much needs to be fixed. In all, this was a mix of key policy imperatives, party unity, and an appeal to the ANC’s traditional voter base," she said.

Who are the key appointees?

Nhlanhla Nene – Finance minister

Served as finance minister from May 2014 until December 2015, when Zuma fired him and replaced him with an unknown backbencher, who was sacked four days later.

David Mabuza – Deputy president

The ANC deputy president and premier of Mpumalanga province was an ally of Zuma. His influence in Mpumalanga will be significant for Ramaphosa and the ANC in next year's election.

Pravin Gordhan – Public enterprises minister

A popular figure with investors, he served as Minister of Finance from 2009 until 2014 and again from 2015 until 2017. Gordhan has been a critic of the corruption that dogged Zuma's term.

Nkosazana Dlamini-Zuma – Minister in the presidency

The former minister and chairwoman of the African Union Commission narrowly lost to Ramaphosa in an ANC leadership election in December. She was married to former president Zuma for over a decade and has four children with him.

Lindiwe Sisilu – Foreign affairs minister

Sisulu initially ran against Ramaphosa in the ANC leadership race last year but later withdrew. She is the daughter of anti-apartheid activist Walter Sisulu, a close friend of Nelson Mandela.

Malusi Gigaba – Home affairs minister

Gigaba returns to the home affairs ministry after having served as finance minister since being appointed by Zuma in March. He delivered the budget last week.

Naledi Pandor – Higher education minister

A former teacher and veteran minister, Pandor comes from a long line of political activists in Kwa-Zulu Natal, a key province for the ANC and one where Ramaphosa needs allies.

Derek Hanekom – Tourism minister

A white Afrikaner, Hanekom has served as a minister under every president since the end of white-minority rule, including as minister of land under Nelson Mandela. Hanekom was one of the most vocal critics of Zuma.

A ‘new dawn’ for South Africa?

During Zuma's nine-year tenure, South Africa grappled with weak growth, ballooning national debt, depressed investor confidence and record unemployment. Ramaphosa has pledged "a new dawn" for the country and to tackle the corruption that Zuma is accused of fostering.

Malusi Gigaba has been moved from the finance ministry to home affairs. /VCG Photo

Amid falling popularity with voters, the ANC – which was led to power in 1994 by Nelson Mandela – had threatened to oust Zuma via a no-confidence vote in parliament. Zuma resigned reluctantly, complaining he had received "very unfair" treatment from the party.

Zuma’s nine years as president were marked by multiple corruption allegations, economic mismanagement and disputed appointments. Zuma denies any wrongdoing.

Ramaphosa, 65, is a former trade unionist who led talks to end apartheid in the early 1990s and then became a multi-millionaire businessman before returning to politics.

(With input from agencies)

11675km