South Africa’s Nhlanhla Nene Takes Position on Allan Gray Board

  • President Zuma said Nene was being moved to Brics bank post
  • Nene's removal was `traumatic' for country, Gordhan said

Nhlanhla Nene.

Photographer: Simon Dawson/Bloomberg

Allan Gray Ltd. has appointed former South African finance minister Nhlanhla Nene as a non-executive director.

“We are very happy to have someone of Mr Nene’s experience on our board,” Ian Liddle, chairman of the Cape Town-based asset manager said in an e-mailed statement on Monday. “We are looking forward to his strategic and leadership contribution.”

President Jacob Zuma fired Nene, 58, in December and replaced him with little-known lawmaker David van Rooyen, saying Nene would be nominated for a senior position at the new Brics development bank. The former minister said in an interview with Johannesburg-based broadcaster eNCA last week he had taken up a job at a private company.

Nene’s removal sparked a sell-off in the rand and the nation’s bonds and four days later Zuma changed course and named Pravin Gordhan to the post he had held from 2009 to 2014 after pressure from political and business leaders. Gordhan told lawmakers in Cape Town on April 6 Nene’s abrupt departure was “traumatic” for the country and the National Treasury.

South Africa’s economy is set to expand at the slowest pace since the 2009 recession and risks losing its investment-grade credit rating as Standard & Poor’s has a negative outlook on its BBB- assessment, which is one level above junk. The rand fell for a third consecutive day and was 0.3 percent weaker at 14.6007 per dollar as of 1:23 p.m. in Johannesburg.

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