OREANDA-NEWS. South African president Jacob Zuma has appointed Mmamoloko "Nkhensani" Kubayi as the country's new energy minister, replacing Tina Joemat-Petterson.

Zuma's dismissal of former finance minister Pravin Gordhan in the same cabinet reshuffle intensified the country's political crisis.

Kubayi is scheduled to be sworn into office today. She is a former ANC representative in Johannesburg municipality and has served on educational and telecommunications committees in the national parliament.

The energy ministry is one of the government bodies that will have to approve plans for South Africa to build additional nuclear power capacity, a policy keenly pushed by Zuma.

The ministry is also drawing up approvals for the start of shale gas exploration in the semi-desert Karoo region. It will also have to react to an upcoming competition commission inquiry into the country's LPG market.

Offshore oil explorers, including Total and ExxonMobil, are waiting for the government to finalise offshore oil and gas exploration fiscal and other operating terms.

The ministry will also have to give its approval to plans announced by Chevron this month to sell its 75pc stake in its 110,000 b/d capacity oil refinery in Cape Town and other downstream assets to China's Sinopec for almost $1bn.

Investors are concerned over the future political and economic direction of Africa's most advanced economy and sharp divisions within the ruling African National Congress (ANC) party over Zuma's future as president.

The rand has lost value since Zuma sought to remove Gordhan.

Gordhan had the backing of large parts of the business community and some senior members of the ruling ANC party because of his determination to limit political interference in the finance ministry. Gordhan has also clashed with business interests close to Zuma and his family.