Business analysts and economists say South Africa’s Minister of Finance Nhlanhla Nene must step down. The analysts say this will set a very commendable and perhaps historic message to the political executive within South Africa that at last there is some attempt to accountability from an executive position.
Nene’s reputation came under the spotlight last week after he revealed that he had several meetings with the Gupta family during his tenure as Deputy Finance Minister, and during his first term as Finance minister.
As pressure mounts for Nene to step down, business analysts are also in agreement.
Independent political analyst Daniel Silke says it would be wise for Nene to resign, as it would pressurise those existing members of the executive to also come clean on their relations with the Guptas.
“I would argue that in South Africa we have not had accountability from our political executive and cabinet prior to 1994, and none post 1994… and if indeed the resignation by Nene is accepted by President Ramaphosa, this would perhaps signal a new precedent for accountability within cabinet which I think is important – and secondly – should Nene be the fall guy in this episode, there are many others who have had questionable linkages with the Gupta’s and they will be under immense pressure.”
Head of Economics and Business Science at Wits University Prof Jannie Rassouw says he is in favour of Nene stepping down.
“The pressure is mounting on Nene to step down as Minister of Finance. I am also in favour of Nene stepping down. Nene announced that he had meetings with the Gupta family that he previously failed to disclose, and he did not go far to disclose what the agendas of those meetings were. He should have explained the nature of the discussions he had.”
Chief Economist at Econometrix Azar Jammine also responds: “…and some will point out that the Rand has weakened this morning (Monday) and bond yields have risen, but you need to bear in mind that the latter has occurred mainly because the Dollar has been so strong, and bond yields have risen on expectations that US interest rates will have to raise faster than previously anticipated.”
Analysts say there are other notable successors should Minister Nene leave.
“No minister is indispensable, and indeed for Minister Nene if he does indeed leave office, there are other notable successes that could take over the portfolio of Finance ministry. But the position is awkward given the October budget address, but I think that the message such a resignation would send would be one that would be favourably met by the market, despite some initial volatility This is not bout Nene, it is about installing a culture of ethics within government,” says Silke.
Rassouw says; ” We have other suitable people that can fit into the position as Minister of Finance immediately – like Jonas, the previous Deputy minister comes to mind… Trevor Manual can be recalled to that position, or we can think of someone like the current governor of the South African Reserve Bank. The central bank is one organisation that has not been tainted. We need consistency and stability in the position of the Minister of Finance, but we can really not afford someone whose position is tainted, and therefore he should step down sooner rather than later if we want to get investment in South Africa going again and if we want to restore business confidence in the country.”
Jammine is also proposing Jonas should Nene’s resignation be accepted.
“The other thing to bare in mind is that there are other possible successors to Nene as Minister of Finance – such as Mcebisi Jonas, former Deputy Minister of Finance… some have suggested Barbara Creecy, Minister of Finance in the Gauteng government… so there are lots of capable people who could follow up on Nene’s position.”
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