President Zuma has sacked his veteran finance minister. It is a bad move he may approach to regret
South Africa is a big country and in some ways a rich country. But,whether in colonial times, in the apartheid era, or during the years of rule by the African National Congress,the combination of volatile prices for the minerals that are its main asset, a fixed need for investment from external, and pressure for better wages and conditions has meant its economy is particularly difficult to steer. When poor management at home combines with damaging changes in the world economy,disaster soon follows in South Africa. Unhappily that is very much the case nowadays. President Jacob Zuma’s sacking of his respected finance minister Nhlanhla Nene this week represents another turn in the country’s downward economic spiral.
After the news of Mr Nene’s departure, and his replacement by a virtually unknown MP from the ruling party who has itsy-bitsy financial or economic experience, or the currency tumbled. There was a refrain of complaint from banks and investment houses,and a collective sigh went up from the ANC’s well-wishers everywhere. This comes only a week after one major credit agency joined another in downgrading South Africa’s credit rating. Junk status, which would have disastrous consequences, and is only a step or two away.
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Source: theguardian.com