South africa's finance minister resigns

News of the South African Finance Minister's resignation has sent shockwaves through the country, and has affected foreign investors who were considering buying a South African property.

Stock market traders in South Africa are bracing themselves for share prices to fall further after news that the country's Finance Minister Trevor Manuel has resigned.

Property markets in Durban and Cape Town in South Africa have been booming of late, attracting hoards of foreign investors eager to snap up a bargain in what is still a fairly untapped market.

In the wake of the Finance Minister's resignation, economic experts are concerned that inflation could rise, and this in turn could scare of international investors. Stocks are already falling.

Mr Manuel has overseen South Africa's longest economic expansion on record, as well as its first budget surplus, since he first started the job in 1996.

When he handed in his resignation, the South African rand immediately fell to 8.2176 against the dollar, from 7.9875 a day earlier. It then fell further, to 8.1713.

However, Mr Manuel has said he will work with the new leaders of the African National Congress (ANC) and implied that he was prepared to remain in the Finance Minister job if asked. This news boosted the stock exchange.

Mr Manuel, said, "This is not about moving markets, this is about fighting for principle in politics.

"There is no crisis, there was no crisis. The rand fell significantly in a short period of time but we have lived through similar turbulence at different times," he added.

Analysts said Mr Manuel's position in the cabinet is seen as crucial to the country's economic stability for foreign investors, especially during the current wave of uncertainty affecting world money markets.

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