South African President Cyril Ramaphosa has appointed investor favorites to key economic management roles in a cabinet reshuffle announced late Monday.
Former Finance Minister Nhlanhla Nene has been reinstated, while Pravin Gordhan, a two-time former finance minister who was most recently sacked by former President Jacob Zuma in March last year, has been restored to the African National Congress (ANC) cabinet as minister for public enterprises.
The reappointments of Nene and Gordhan "will be well-received by financial markets and ratings agencies, as will the significant clean-out of ministers with clouds of corruption and mismanagement and sheer incompetence hanging over them," Gary van Staden, senior political analyst at South Africa-based NKC Economics, wrote in a note Tuesday.
Nene served as South Africa's finance minister from May 2014 to December 2015 until he was fired by Zuma and replaced by an unknown backbencher. He is keen to stem public spending — for example by crushing plans to build nuclear power stations in South Africa, which could cost up to $100 billion.