In a recent piece about our nose-diving rand, we related economist opined that the president is contributing to the rand historic plunge. As it happened, the rand fell consecutively in two weeks and eventually dropped like never to another record lows against the US dollar to R17,99. According to economist, the president’s ought to shut up as his comments regarding the drama of the Finance Ministry in 2015, are wrecking havoc to the rand.
With that, a report circulating today, postulating the biggest factors hurting the economy as identified by the Chief economist at Efficient Group, Dawie Roodt established that Zuma is one of the biggest contributing factors to South Africa’s economic mess, and in order to fix the mess, the economist reportedly stated that the country would have to fire Zuma as the leader of the country.
Reacting to the blames heaped on Zuma, the Finance Minister, Pravin Gordhan told media outlets that the blames on Zuma cannot be substantiated as the rand does not operate on what an individual does or says.
Gordhan was speaking during a post-cabinet briefing when he made the comment above, explaining that global markets are battling, with “flashes” like the sudden volatility of Monday, which made the rand fall plunge to a place it has never found itself.
Responding to a question on whether the rand falls “every time President Jacob Zuma opens his mouth”, Gordhan stated that “the world is in a terrible place…the circumstances in which we find ourselves in are very complex…the rand does not operate on what an individual does or says…there are a wider set of factors that are at play.”
The Finance minister called on manufacturers to take advantage of the weakened rand and ramp-up exports, and then comforted South Africans as he declared that “the problem is that the economy is growing, but not fast enough…South Africa is not going into a recession and is spending around R1.3trn every year,” he said.
“You do not have to panic, you do not have to be anxious about our environment…I can assure you on behalf of government that I will do everything possible to stabilize our economy,” he vowed.
Also, Jeff Radebe, Minister in the Presidency chipped in that “there are challenging circumstances ahead. Falling commodity prices and the reduced demand for exports because of difficult conditions, insufficient electricity supplies and the severe drought are just a few of the issues facing the country.”
South Africa is in for a fraught time, he said. And then, announced that “South Africans have shown that they are resilient and know the value of working together and can work together.”
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