New minister in the presidency responsible for the new National Planning Commission Trevor Manuel, is not having his power limited, President Jacob Zuma said on Sunday.

Announcing his Cabinet, Zuma said the former finance minister understood the government "inside out" and was being given "a very powerful structure".

"Taking away economic planning from comrade Manuel is not limiting his power," Zuma said.

"Comrade Manuel is being given a very powerful structure that is going to work out the national plan of government.

"We believe Comrade Trevor Manuel has experience. His handling of finance has enabled him to understand the government inside out.

"We believe Trevor Manuel will do it with flying colours."

Zuma said he expected markets to react well to his new Cabinet.

"I can't predict markets. I think markets react on a number of important issues, not only Cabinet appointments.

"I don't think some could say you reserve a finance minister forever. Markets are aware that at some point changes come.

"In my opinion the markets will react positively. There are not going to be any mishaps," Zuma said.