JOHANNESBURG _ South African President Jacob Zuma fired Finance Minister Pravin Gordhan and replaced him with Home Affairs Minister Malusi Gigaba as he sought to tighten his grip over the nation's finances. The rand weakened.
Zuma made 20 changes to his administration early Friday after a meeting of the top six members of the ruling African National Congress at his residence in Pretoria, the capital. The announcement capped a dramatic week when Zuma ordered Gordhan on Monday to cancel a series of meetings with investors in the U.K. and the U.S. and return home. Among the other changes, Deputy Finance Minister Mcebisi Jonas was replaced by lawmaker Sfiso Buthelezi.
Zuma, 74, packed his Cabinet with loyalists before he steps down as party leader in December at a time when his government and the ANC are facing waning public support. The party suffered its worst electoral performance since the end of apartheid in 1994 in municipal elections in August, when it lost control of Pretoria and the economic hub of Johannesburg.
"This is a full whack Zuma-led reshuffle," said Peter Attard Montalto, an economist at Nomura International Plc in London. "Zuma is confident he has the upper hand over weak internal ANC opposition."
Gordhan's successor, Malusi Gigaba, 45, was appointed as minister of home affairs in May 2014. A former president of the ruling party's youth wing, Gigaba trained as a teacher and holds a master's degree in social policy. He previously served as the minister of public enterprises, deputy home affairs minister and as a lawmaker for the ANC.
The other Cabinet changes announced by Zuma include the appointment of Mmamoloko Kubayi as energy minister, Joe Maswanganyi as transport minister in place of Dipuo Peters and Tokozile Xasa as tourism minister in place of Derek Hanekom.
Several ministers were given new portfolios including Fikile Mbalula, who becomes police minister, Nathi Nhleko, who was named minister of public works, and Thulas Nxesi, who was appointed minister of sport and recreation. Ayanda Dlodlo will take over the communications portfolio from Faith Muthambi, who becomes minister of public service and administration. Hlengiwe Mkhize succeeds Gigaba as home affairs minister.
Gordhan's ouster marked the end of a stormy relationship that began almost as soon as Zuma named him as finance minister in December 2015, four days after he triggered a sell-off in the rand by giving the post to a little-known lawmaker.
Gordhan's efforts to keep spending in check and protect South Africa's investment-grade credit rating endeared him to investors. Yet he clashed with his boss over the affordability of building nuclear power plants and the management of state-owned companies.
"The extent of the Cabinet reshuffle, and the dramatic manner in which it was handled, is devastating," said Anne Fruhauf, vice president at New York-based risk adviser Teneo Intelligence. "Gigaba and Buthelezi are both in the Zuma camp and the circumstances under which they have been appointed to the Treasury will cast a long shadow over their credibility."
The rand weakened 0.9 percent to 13.4037 per dollar by 12:50 a.m. in Johannesburg, extending Thursday's 1.9 percent drop. The currency has tumbled 7.2 percent this week, the most since December 2015 when Zuma fired Nhlanhla Nene as finance minister.
