Zuma's game puts boot into South Africa's economy

28 March 2017 - 10:24 By The Times Editorial
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If there were a Champions League of own goals South Africa would surely be the log leader, with yesterday's dramatic recall of Finance Minister Pravin Gordhan from an international roadshow to investors and ratings agencies being the season's highlight.

The facts of Gordhan and his deputy Mcebisi Jonas's recall from their London trip were still unfolding yesterday but the uncertainty and potential ramifications of the move were predictable all the same.

The rand immediately weakened on the news and speculation flared that the recall presaged a cabinet shuffle long predicted.

The script playing out goes to the heart of the ANC's factional struggle as Jacob Zuma and his allies move to assert absolute control over the reins of power - their endeavours thus far having been repeatedly thwarted by Gordhan and the Treasury.

Reshuffle or not, the manner of Gordhan's recall is clearly designed to humiliate him and to send an unequivocal message about who is calling the shots.

It also sends an unambiguous message about what is important in this internecine party power struggle - and the broader interests of South Africans and our economy, which teeters on a ratings downgrade, are clearly not central to this agenda.

There can be no coincidence that the move comes on the eve of a scheduled court hearing in which Gordhan has sought a declaratory order saying he cannot interfere in the relationship between South Africa's banks and their clients after banking facilities to the Gupta family and their enterprises were universally cut last year.

As the economy begins to show some green shoots of life and with the rand finding new strength, the timing of the presidency's recall could not have been worse. It is so poorly timed that it is impossible to believe it was not by design and, if so, this is worse than a horrendous own goal. It smacks of deliberate economic sabotage.

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