African press review 30 March 2017

Pravin Gordhan is still South Africa's finance minister. But for how long? Or could the attempt to oust him now turn against President Jacob Zuma? What can Kenyans expect from this afternoon's budget announcement, given that there's a presidential election scheduled for August? And what has Egypt's Abdel Fatah al-Sisi been saying at the Arab Summit in Jordan?

Pravin Gordhan is hanging on as South African finance minister. But the plot has certainly thickened.

According to the latest twist in the sacking saga, as reported in this morning's Johannesburg-based financial paper BusinessDay, President Jacob Zuma ordered the minister's immediate return from an investment conference earlier this week because Zuma believes Gordhan went to London to meet individuals planning to overthrow the state.

The information, contained in an “intelligence report”, resulted in Zuma calling Gordhan back from London and ordering Deputy Finance Minister Mcebisi Jonas to cancel a planned trip to meet US investors.

Gordhan travelled with business leaders and trade unionists in an attempt to reassure investors and rating agencies about South Africa’s commitment to growing the economy and adhering to a strict fiscal policy.

South African media are this morning reporting that Zuma yesterday told ruling ANC party leaders that Gordhan had to be removed as a result of the intelligence report.

State security spokesman Brian Dube says he had no knowledge of any “intelligence report” on Gordhan.

In the Financial Mail's opinion pages, Peter Bruce says Gordhan's recall from London is simply explained as yet another expression of the greed, dishonesty and paranoia that have characterised the presidency of Jacob Zuma.

The main story in this morning's Sowetan tabloid is headlined "Zuma to justify Gordhan axing with intelligence report".

The Mail & Guardian reports that Deputy President Cyril Ramaphosa, ANC secretary general Gwede Mantashe and party treasurer Zweli Mkhize have vehemently opposed the removal of Gordhan.

Zuma is said to have proposed the name of Brian Molefe as Gordhan’s replacement but this was rejected by the most senior leaders of the party.

It is understood that the proposal of Molefe as finance minister was also rejected by the South African Communist Party.

Zuma had intended to make the announcement of a cabinet reshuffle on Tuesday but was warned that members of the top six would publicly voice their disagreement with the decision.

In the meeting with the top six, the president presented concerns over Gordhan’s close relationship with “white monopoly capital” as the reason for the change.

The Mail & Guardian also reports that Zuma presented an intelligence report to party officials. The dossier alleged sinister intentions behind Gordhan’s scheduled meetings with prominent British and American bankers. The report is said to allege that Gordhan had planned to inform bankers that his ministry and the treasury are united against Zuma.

Kenyatta's last chance to soften the electorate

The Standard in Kenya says President Uhuru Kenyatta will use today’s budget announcement to reassure Kenyans ahead of his second stab at the presidency.

With food prices at a record high, the country’s economy reeling under a 3.8 trillion-shilling debt, and a number of pre-election promises yet to be fully fulfilled, Kenyans will be keenly listening as Treasury Cabinet Secretary Henry Rotich outlines how the government intends to spend their taxes in the run-up to the August elections.

The Nairobi-based daily says striking a balance between better pay for public servants and ensuring that they properly use the money allocated to serve the public will form a key part of Rotich’s 2017-18 Budget Statement.

Kenya to leave trade taxes with EAC partners untouched

Regional paper the East African says the Kenyan budget will exclude taxation measures likely to distort trade in the East African Community before the other four partners make their proposals in June.

The report says the Treasury in Nairobi has promised that today's statement will steer clear of customs-related taxes after the other East African Community (EAC) member states found it difficult to deviate from the budget calendar adopted under the EAC tax harmonisation initiative.

The Treasury says the separate announcement of tax proposals by member states would lead to business malpractices like hoarding and smuggling. Kenya, Rwanda, Tanzania and Uganda agreed a decade ago to announce their budgets on the same day. Burundi, however, still publishes its budget in December because its fiscal year follows the calendar year; the other community members have a fiscal year running from July to June.

Sisi warns Arab world of the dangers of terrorism

Egyptian President Abdel Fattah al-Sisi yesterday called on Arab leaders to unite against the threat of terrorism to the Arab world.

In his address to the Arab summit in Jordan, as reported in the Cairo-based Egypt Independent, the Egyptian leader said the Arab world had lost stability over the past few years because national institutions have been weakened, intimidation and sectarian conflict have spread, foreign interference has increased and terrorism has taken advantage.

Sisi added that a political solution to the Syrian crisis is the way to achieve the aspirations of the Syrian people, preserve their national institutions and eliminate the threat of terrorism.