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Uncertainty over Zuma's finance minister recall stirs concerns

Xinhua, March 28, 2017 Adjust font size:

Uncertainty is looming in South Africa over the president's's recall of the finance minister from a roadshow to international investors in the United States and Britain on Monday.

Minister of Finance Pravin Gordhan and Deputy Minister Mcebisi Jonas arrived in the country on Tuesday morning and headed to the ruling African National Congress (ANC) headquarters in Johannesburg for close-door discussion.

They were scheduled to engage investors until March 31, but President Jacob Zuma called the officials on Monday to cancel the investment promotion and return to the country immediately, without giving reasons.

There were fears that the president might reshuffle Cabinet and remove the minister and his deputy.

The South African Chamber of Mines expressed concern on Tuesday over the incident, saying in a statement that it fueled negative speculation that is damaging the country's reputation as an investment destination.

"We urge President Zuma and Cabinet to act in South Africa's best interests to promote a stable, predictable and competitive environment to ensure we continue to build a positive investment climate built on ethical leadership and good governance so that we can meet our economic, social and developmental goals," the chamber noted.

The country's opposition Democratic Alliance (DA) also expressed concern on Tuesday. DA Shadow Minister David Maynier said canceling international investment promotion without explanation will damage the economy.

"The bizarre instruction ... must have severely compromised international investor confidence in the world's financial capitals, and has triggered speculation that the finance minister is about to be fired, which would be a disaster for South Africa," Maynier said.

Following the news of the recall, the South African rand lost over 1.9 percent of its value against the U.S. dollar.

When Zuma fired the then Finance Minister Nhlanhla Nene in 2015, the markets were shocked and the country lost over 500 billion rand. Endit