The move has been described as “extremely damaging” by Kevin Lings, chief economist at Stanlib:

We didn’t think that sort of thing [Mr Nene’s dismissal] would actually happen.

The Treasury as well as the South African Reserve Bank are both regarded as credible and well-run institutions, viewed as independent of the “politicking that normally goes on”, says Lings.

But this appointment would suggest that one has to be more mindful of political interference in the functioning of the Treasury.

The lines start to blur between what is sound economic policy for the country and what are appointments to achieve political objectives.

Only last month was South Africa just shy of going into recession.

Political meddling has trashed our state institutions such as including state broadcaster SABC, national carrier South African Airways (SAA), and Eskom, the utility

The writing has been on the wall for a long time and everybody has ignored it. It’s just another step in the process. The fact of the matter is that it’s a confirmation — it’s not as though we suddenly hit an iceberg and we didn’t know the icebergs were there.

It is only clear that after the dismissal of Mr Nene, Zuma acts according to his personal interest without thinking about the public opinion. Mcebisi Ndletyana, an associate professor at the University of Johannesburg, said:

He has no sense of the implications that his decisions have, and he doesn’t seem to have any sense of foresight — he thinks only of the immediate. If he does think, and he’s aware — which I doubt — he doesn’t care.

According to the Financial Times, the implications for the country and the ANC are there:

South Africa sells about R4bn ($265m) in bonds each week and relies heavily on non-resident portfolio inflows to finance its current account deficit, which hit 4.1 per cent of gross domestic product in the third quarter.

The ruling party, its image already tarnished by the sleaze of the Zuma presidency, is facing tough battles to hold on to its majorities in key cities, including Johannesburg and Port Elizabeth, at local elections next year.

The most prominent of the scandals under Mr Zuma’s watch included allegations that R246m of taxpayers’ money was spent on upgrading the president’s private Nkandla residence, and the police shooting of 34 striking miners three years ago.

So, apparently Zuma must fall?

[source: fn]