South Africa's Zuma moves Manuel to powerful new role
By Phumza Macanda
PRETORIA (Reuters) - Trevor Manuel was appointed to head a powerful new planning body on Sunday, keeping South Africa's former finance minister at the heart of policy-making in President Jacob Zuma's first cabinet.
A day after taking office, Zuma named tax authority chief Pravin Gordhan to replace Manuel in another sign of continuity as Africa's biggest economy heads towards its first recession in 17 years.
"I think the positions that the financial markets were worried about have been skilfully handled," said independent analyst Nic Borain.
Manuel had been in the job for 13 years, making him the world's longest-serving finance minister. Investors approved of the tight monetary and fiscal policies he kept in place.
"Comrade Trevor Manuel has been given a new structure, a very powerful structure that is going to work out a national plan of government," said Zuma, who expects a positive financial market reaction to Gordhan's appointment.
As well coping with the fallout from the global financial crisis, Zuma also faces pressure to deliver on 15 years of promises by his ruling African National Congress (ANC) to tackle widespread poverty, crime and AIDS, and create jobs.
The ANC won an election landslide on April 22, keeping the dominance it has enjoyed since the end of apartheid in 1994. Zuma made his way to the presidency despite facing trials for rape and corruption. All the charges were dropped.
His toughest task may be balancing the interests of unions and communists who helped him rise to the top against those of investors who fear he will steer the economy to the left. Continued...
