Gordhan Bennett

28 March 2017 By George Hay Follow @gfhay

President Jacob Zuma’s abrupt recalling of his respected finance minister hit domestic assets. The latest spat could speed a downgrade of the state’s sovereign debt, although much of that appears priced in. The greater damage would be to South Africa’s institutional solidity.

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South African Finance Minister Pravin Gordhan told reporters on March 28 they should "wait and see" concerning reports that President Jacob Zuma was set to remove him, as he arrived back from an investor roadshow in Britain on Zuma's orders.

Gordhan told reporters upon his return that he was focused on restoring faith in South Africa and had met with about 50 investors while in London. Zuma recalled Gordhan from the roadshow on March 27.

The rand was trading at 12.86 to the U.S. dollar as of 0945 BST on March 28, compared to 12.42 on March 24. It reached a high of 16.87 in January 2016.

The yield on South African 10-year bonds has jumped from 8.3 percent on March 23 to just below 8.8 percent as of 0945 BST on March 28.

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