#Davos: Zuma’s finance minister reshuffle raises eyebrows

SA Reserve Bank Governor Lesetja Kganyago however says it hasn't deterred investors.

The 2016 World Economic Forum will take place in Davos, Switzerland, between 20 and 23 January 2016. Picture: AFP.

DAVOS - South African Reserve Bank Governor Lesetja Kganyago says while the reshuffling of the country's finance ministers late last year has raised some eyebrows at the World Economic Forum (WEF) in Davos, it hasn't deterred investors.

Last month, President Jacob Zuma fired Nhlanhla Nene and replaced him with David Van Rooyen, who was quickly replaced with Pravin Gordhan to stop the markets from crashing further.

Kganyago is part of South Africa's delegation to the Davos summit, which comprises seven government ministers and several business heavyweights.

Kganyago admits questions were asked by potential investors about Zuma's decisions.

"They did raise the question of, 'you do not change finance ministers at that rate as it becomes a source of uncertainty', and then we said that we understand that."

But he says they were comforted by Gordhan's reinstatement.

"The president did come out and said he'd heard a lot of representations. He has heard South Africans who had spoken to him and he decided he's bringing back Gordhan, who brought stability back to the Treasury."

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Kganyago says South Africa's announcement to keep spending under tight control also soothed foreign investor confidence.

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Visit the Eyewitness News World Economic Forum 2016 special feature.