Close Menu
TechCentralTechCentral

    Subscribe to the newsletter

    Get the best South African technology news and analysis delivered to your e-mail inbox every morning.

    Facebook X (Twitter) YouTube LinkedIn
    WhatsApp Facebook X (Twitter) LinkedIn YouTube
    TechCentralTechCentral
    • News

      MultiChoice may unbundle SuperSport from DStv

      12 June 2025

      MVNO boom is reshaping South Africa’s mobile market

      12 June 2025

      South African law is failing gig-economy workers

      12 June 2025

      MultiChoice’s TV empire shrinks – but its ‘side hustles’ are holding strong

      12 June 2025

      MultiChoice is bleeding subscribers

      11 June 2025
    • World

      Qualcomm shows off new chip for AI smart glasses

      11 June 2025

      Trump tariffs to dim 2025 smartphone shipments

      4 June 2025

      Shrimp Jesus and the AI ad invasion

      4 June 2025

      Apple slams EU rules as ‘flawed and costly’ in major legal pushback

      2 June 2025

      Mark Zuckerberg has finally found a use for his metaverse

      30 May 2025
    • In-depth

      Grok promised bias-free chat. Then came the edits

      2 June 2025

      Digital fortress: We go inside JB5, Teraco’s giant new AI-ready data centre

      30 May 2025

      Sam Altman and Jony Ive’s big bet to out-Apple Apple

      22 May 2025

      South Africa unveils big state digital reform programme

      12 May 2025

      Is this the end of Google Search as we know it?

      12 May 2025
    • TCS

      TechCentral Nexus S0E1: Starlink, BEE and a new leader at Vodacom

      8 June 2025

      TCS+ | The future of mobile money, with MTN’s Kagiso Mothibi

      6 June 2025

      TCS+ | AI is more than hype: Workday execs unpack real human impact

      4 June 2025

      TCS | Sentiv, and the story behind the buyout of Altron Nexus

      3 June 2025

      TCS | Signal restored: Unpacking the Blue Label and Cell C turnaround

      28 May 2025
    • Opinion

      Beyond the box: why IT distribution depends on real partnerships

      2 June 2025

      South Africa’s next crisis? Being offline in an AI-driven world

      2 June 2025

      Digital giants boost South African news media – and get blamed for it

      29 May 2025

      Solar panic? The truth about SSEG, fines and municipal rules

      14 April 2025

      Data protection must be crypto industry’s top priority

      9 April 2025
    • Company Hubs
      • Africa Data Centres
      • AfriGIS
      • Altron Digital Business
      • Altron Document Solutions
      • Altron Group
      • Arctic Wolf
      • AvertITD
      • Braintree
      • CallMiner
      • CYBER1 Solutions
      • Digicloud Africa
      • Digimune
      • Domains.co.za
      • ESET
      • Euphoria Telecom
      • Incredible Business
      • iONLINE
      • Iris Network Systems
      • LSD Open
      • NEC XON
      • Network Platforms
      • Next DLP
      • Ovations
      • Paracon
      • Paratus
      • Q-KON
      • SkyWire
      • Solid8 Technologies
      • Telit Cinterion
      • Tenable
      • Vertiv
      • Videri Digital
      • Wipro
      • Workday
    • Sections
      • AI and machine learning
      • Banking
      • Broadcasting and Media
      • Cloud services
      • Contact centres and CX
      • Cryptocurrencies
      • Education and skills
      • Electronics and hardware
      • Energy and sustainability
      • Enterprise software
      • Fintech
      • Information security
      • Internet and connectivity
      • Internet of Things
      • Investment
      • IT services
      • Lifestyle
      • Motoring
      • Public sector
      • Retail and e-commerce
      • Science
      • SMEs and start-ups
      • Social media
      • Talent and leadership
      • Telecoms
    • Events
    • Advertise
    TechCentralTechCentral
    Home » In-depth » Zuma risks everything on Gordhan fight

    Zuma risks everything on Gordhan fight

    By Agency Staff28 March 2017
    Twitter LinkedIn Facebook WhatsApp Email Telegram Copy Link
    News Alerts
    WhatsApp
    Jacob Zuma

    President Jacob Zuma is taking a gamble as he ups the ante in his battle with his finance minister Pravin Gordhan for control of the nation’s finances.

    If he fires Gordhan, as he told Communist Party officials that he planned to do according to three people with knowledge of the matter, he risks a market meltdown and a revolt by opponents in the ruling ANC.

    If he doesn’t, he’d appear weak as he seeks to secure his choice as successor as party leader in December.

    Zuma ordered Gordhan to cancel a roadshow and to return home from London on Monday. The turmoil has caused the rand to plummet.

    Since Zuma, 74, was pressured to appoint Gordhan in 2015, he’s feuded with him over a planned nuclear power expansion and the management of state companies and the national tax agency. He told the communist officials that Gordhan is obstructing his policies and must be removed, according to the people at the meeting who asked not to be identified because a public statement hasn’t been made.

    “This is a very high stakes roll of the dice that I think Zuma won’t make easily,” Daniel Silke, director of Political Futures Consultancy in Cape Town, said by phone. “It’s a lose-lose situation. I don’t think the medium or long-term effects will be beneficial to him or to the ANC.”

    The rand has weakened about 3,8% against the dollar over the past two days, the most among 150 currencies monitored by Bloomberg, and was at R12,94 at 7.12pm in Johannesburg. The benchmark 10-year rand bond fell, with the yield climbing 38 basis points to 8,73 percent over the same period.

    “He knew there would be backlash but he tried to ram it through,” University of Johannesburg associate professor of political science Mcebisi Ndletyana said by phone from Johannesburg. “He is behaving as though someone has a gun to his head.”

    Zuma, the ANC’s former head of intelligence, has overplayed his hand before — a move that resulted in Gordhan taking over the finance ministry. His decision to replace then-finance minister Nhlanhla Nene in 2015 with little-known lawmaker caused the rand and stocks to nosedive. He named Gordhan to the post four days later after lobbying from ANC and business leaders.

    Gordhan ordered home

    On Monday, Zuma appeared to have run out of patience. He ordered Gordhan to cancel meetings with investors in London and the US and return home a day after the finance minister landed in the UK. The presidency gave no reason for the decision to cancel the roadshow, which the treasury said had prior approval. Bongani Ngqulunga, the presidential spokesman, didn’t answer calls to his mobile phone.

    Despite his current dilemma, Zuma has proven to be a survivor since assuming leadership of the ANC in 2007 and the country in May 2009. He’s rebuffed calls to resign after the nation’s top court said he violated his oath of office by refusing to repay taxpayer money spent on his private home. He also avoided going on trial for allegedly taking bribes from arms dealers despite his financial adviser being convicted on similar charges

    Disgruntlement with his leadership contributed to the ANC’s worst-ever electoral performance in a municipal vote in August last year and cost it control of several major cities, including the economic hub of Johannesburg and the capital, Pretoria.

    In November, the ANC’s top leadership debated a motion of no confidence in the president but decided against putting it to the vote. Zuma still enjoys wide support from the party’s women’s and youth leagues.

    While Zuma has pushed for “radical economic transformation” that he says will tackle racial inequality and poverty, Gordhan has led efforts to keep spending in check and fend off a junk credit rating, earning plaudits from business leaders and investors.

    “It’s the drip-feed of speculation about whether Gordhan will resign which is most damaging,” Nicholas Spiro, a partner at London-based Lauressa Advisory, which advises asset managers, said by e-mail. “Investors know full well that he’s had his wings clipped and can only do so much. The fact that he continues to be persecuted almost beggars belief given the acute vulnerability of South Africa’s economy and creditworthiness.”

    The odds are mounting that Zuma won’t see out his second term as president, which ends in 2019, and he will do anything to ensure his political survival, according to Andre Duvenhage, a politics professor at North West University in Potchefstroom.

    “He is now like a wounded leopard that will fight until the bitter end,” Duvenhage said. “He is in severe trouble. My take is that he will remove Gordhan, even though there are huge risks involved.”  — (c) 2017 Bloomberg LP



    Jacob Zuma Mcebisi Ndletyana Nhlanhla Nene Pravin Gordhan
    Subscribe to TechCentral Subscribe to TechCentral
    Share. Facebook Twitter LinkedIn WhatsApp Telegram Email Copy Link
    Previous ArticleSA’s political bustup revives ‘junk’ spectre
    Next Article Naspers affiliate Tencent buys 5% of Tesla

    Related Posts

    Zuma daughter to face terrorism incitement charges over social media posts

    29 January 2025

    Ramaphosa orders probe into dodgy Gupta breakfasts

    21 October 2024

    Pravin Gordhan was that rare thing: an honest politician

    14 September 2024
    Company News

    Building a cyber-resilient culture from the boardroom to the front lines

    12 June 2025

    How South Africa’s municipalities are finally getting smart

    12 June 2025

    Ransomware roulette: pay up or power through?

    11 June 2025
    Opinion

    Beyond the box: why IT distribution depends on real partnerships

    2 June 2025

    South Africa’s next crisis? Being offline in an AI-driven world

    2 June 2025

    Digital giants boost South African news media – and get blamed for it

    29 May 2025

    Subscribe to Updates

    Get the best South African technology news and analysis delivered to your e-mail inbox every morning.

    © 2009 - 2025 NewsCentral Media

    Type above and press Enter to search. Press Esc to cancel.