South African President Jacob Zuma’s instruction ordering Finance Minister Pravin Gordhan to cancel an international investment roadshow to London has sparked speculation about a possible cabinet reshuffle.
The move brings into sharp focus the divisions within his administration and within the governing African National Congress (ANC).
Mr Gordhan has made some political enemies after being seen as a bulwark against corruption and opposed to spending money on grand plans that are perceived as being politically motivated.
Markets are reacting negatively to the news of the recall. Consequently the country’s currency, the rand, has weakened by at least 2% since this controversy began this morning.
Some believe that Mr Zuma wants to create space in his cabinet for his ex-wife, the former chair of the African Union, Nkosazana Dlamini-Zuma who is tipped to be a candidate in the ANC leadership contest later this year.
According to a treasury statement shared by one local journalist (see below), he would have spent two days in London, one day in Boston and two days in New York.
Described as a “non-deal” trip, the Treasury said that it would “provide an update on the most recent developments, engage constructively with investors and share government’s thinking behind its latest policy proposals”.
Source : BBC