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Zuma's Night of Long Knives Risks ANC Split, Credit Rating

  • Malusi Gigaba replaces Pravin Gordhan as finance minister
  • Rand plunges after Zuma makes sweeping changes to cabinet
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Goldman Sachs MD Sees Dark Mood in South Africa

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South African President Jacob Zuma fired Finance Minister Pravin Gordhan and made sweeping changes to his administration in a high-stakes power play that may threaten his own presidency and place the nation’s investment grade credit rating at risk.

Zuma replaced Gordhan, with whom he feuded over state finances, with Home Affairs Minister Malusi Gigaba, who has no financial or business experience. He also named lawmaker Sfiso Buthelezi to take over from Mcebisi Jonas as deputy finance minister. The cabinet overhaul came in a late-night move that threatens to split the 105-year-old ruling African National Congress and trigger a revolt against the president. The rand extended losses, heading for its worst week in more than a year.