South African markets have reacted negatively to President Cyril Ramaphosa’s cabinet reshuffle.
On Thursday, President Ramaphosa announced that he had appointed the chair of the Development Bank of South Africa Enoch Godongwana as the new Minister of Finance.
Godongwana replaces Tito Mboweni who asked to be excused from his position.
The rand surged from around R14.36 to almost R14.60 to the US dollar in late trade.
Chief Economist at Econometrix Dr Azar Jammine was reacting to the new changes in President Ramaphosa’s cabinet:
“Tito Mboweni did not seem to have his heart in the position of Minister of Finance. However, I believe that Enoch Godongwana has a long pedigree and that is actually of a benefit. The markets have taken a knock, which suggests that there has been an element of a loss in confidence by international investors who had a bit of confidence and loyalty towards Tito Mboweni and so I think this reflects a disappointment.”
Jammine added that it was still early days and that Enoch Godongwana is backed up by a great team.
