There was mixed reaction to his appointment this week.
The African Christian Democratic Party (ACDP) said that the appointment of former reserve bank governer Tito Mboweni will “no doubt” calm markets.
The party said the man’s appointment will also provide confidence to foreign investors because of his previous investor-friendly role as a cabinet minister and central bank governor.
“He will no doubt adhere to strict fiscal consolidation measures required to stabilise state finances,” the ACDP said.
“And will inspire investor confidence in the economy,” the party said.
It urged President Cyril Ramaphosa to follow through on his commitment to good and clean governance by considering removing other “far more contentious ministers” than Nene.
The rand strengthened as news of Mboweni’s appointment spread.
Ramaphosa announced Mboweni as the new finance minister after Nhlanhla Nene resigned over allegations of his link with the Gupta family.
“This moment calls for strong, capable and steady leadership that will unlock new opportunities as we grow and transform our economy. I am confident that Mr Mboweni will provide that leadership,” Ramaphosa said on Tuesday evening.
The DAexpressed concerns over Twitter posts that Mboweni made several months ago where he called on the state to own 40% of mining companies.“What is not clear is whether this was a flirtation with “radical economic transformation”, or a conversion to ‘radical economic transformation,” DA shadow minister of finance David Maynier said.
“We now need to know whether the minister actually supports extending state-ownership in the mining sector, establishing a state-owned bank and creating a sovereign Wealth Fund, which may have major implications for investment and job creation in South Africa,” he said.
(edited by MLM)
Send tip-offs to [email protected]