Menu

South African President Jacob Zuma announced on Wednesday the removal of Finance Minister, Nhlanhla Nene, from his cabinet after 18 months in office. Nene was appointed as South Africa's Finance Minister on 25 May, 2014. He was previously the Deputy Minister of Finance.

Zuma also announced David Van Rooyen, a member of the ruling African National Congress (ANC), as the new Finance Minister to replace Nene.

“I have decided to remove Mr Nhlanhla Nene as Minister of Finance, ahead of his deployment to another strategic position,” Zuma said in a statement in which he praised Nene for a job well done since his appointment as Finance Minister.

The removal of Nene came on the back of reported clashes with allies of Zuma. The new Finance Minister, Van Rooyen, served as the Whip of the Standing Committee on Finance in the South African parliment. He was also Whip of the Economic Transformation Cluster. Van Rooyen is a former executive mayor of Merafong Municipality and a former North West provincial chairperson of the South African Local Government Association.  

The South African economy has deteriorated over the past several years, slumping from annual GDP growth rate of 3.6% in 2011 to 1.4% in 2014. The Q3 2015 GDP growth was 0.7%.

South African unemployment reached a 10-year high in 2015 when it climbed to 26.4% in May. Youth unemployment rate is almost double national rate. Reports say this is higher than it was at the end of apartheid.  

The Nigerian operations of MTN, one of South African multinationals and Africa's largest telecoms company, has until December 31 to pay the whopping fine of $3.9 for failing to disconnect unregistered telephone lines. The initial fine was $5.2 billion, but the Nigerian Communications Commission slashed it by 25% after a request for reduction by the telecoms company was somewhat heeded against the wishes of some Nigerians who have sued the regulator for the reduction in the fine.