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Nene Could Head BRICS Bank Opening Soon In Johannesburg

Nene Could Head BRICS Bank Opening Soon In Johannesburg

Former South African Finance Minister Nhlanhla Nene, whose firing by President Jacob Zuma prompted calls for Zuma to resign, was nominated to head the Africa regional center of the BRICS New Development Bank, BusinessDayLive reported.

The South African government has formally nominated Nene for the job, according to Leslie Maasdorp, vice president and chief financial officer of the bank — a lending and development entity of the Brazil, Russia, India, China and South Africa (BRICS) partnership.

Interim offices of the Africa regional center are expected to open  by early February, Maasdorp said. Hiring someone to head the bank is high priority and the position will be filled as soon as possible, he said, but he declined to give the names of other candidates, or say when the decision would be made.

The bank’s recruitment process is “an internal confidential process,” Maasdorp told BusinessDayLive. “We are not in a position to disclose names of other candidates for the role.”

Zuma said in December that Nene had been earmarked as a candidate to head the African Regional Centre of the BRICS New Development Bank, Fin24reported.

In a statement, Zuma said the urgency in changing leadership of the National Treasury was “occasioned by the need to send nominations to Shanghai, of the head of the African Regional Centre of the New Development Bank/BRICS Bank, to be based in Johannesburg.”

Officials of Nene’s seniority usually announce such moves only after they have a confirmed job elsewhere, BusinessDayLive reported.

In an interview with eNCA over the weekend, Zuma said, “We took a decision that he (Nene) heads the BRICS bank as it needs an experienced person.”

“I think people did not understand. I think that there was an exaggeration in terms of the reaction. There is no single person that can collapse a department — particularly a department like the treasury,” Zuma told ENCA.

BRICS bank officials will have the final say on who is appointed, BusinessDayLive reported.

A regional BRICS bank office in Johannesburg will be important to help identify development projects in Africa, but the main decision-making roles are at the bank’s headquarters in Shanghai, China, said Martyn Davies, managing director for emerging markets and Africa at Deloitte-Frontier Advisory.

“I would rather have Mr. Nene in Shanghai,” Davies said.

Then there’s the question of whether Nene wants the job. Nene could not be reached for comment, BusinessDayLive reported.

“We are fully backing his candidature, knowing full well that he will excel and make the nation proud in his next assignment,” Zuma said in a statement, according to Fin24.

The New Development Bank’s main aim is to mobilize resources for infrastructure and sustainable development projects in BRICS member countries.

The bank is expected to start lending in the second quarter of 2016 with starting capital of $100 billion.