* Analysts say investment confidence seen lower-for-longer
* Banking CEO's support new minister's appointment
By Zandi Shabalala and Thekiso Lefifi
JOHANNESBURG, Dec 14 (Reuters) - South Africa's rapid reshuffling of finance chiefs has inflicted lasting damage on Pretoria's credentials as a stable emerging market, fund managers said on Monday.
President Jacob Zuma appointed Pravin Gordhan late on Sunday, his second stint in the job, in a dramatic backtracking that gave Africa's most industrialised economy its third finance minister in less than a week.
The president's initial appointment of David van Rooyen, a relatively unknown lawmaker, to replace veteran Nhlanhla Nene triggered a wave of criticism and a selling frenzy in South African assets such banks, currency and bonds.
"Long term confidence in South Africa has been diminished," chief investment officer at asset manager RE:CE Piet Viljoen said. "I think this could be the start, not the last straw that breaks the camel's back."
Spooking foreign investors is a major risk for South Africa, where the current account shortfall is partly funded by foreign portfolio inflows. It would almost certainly raise the costs for both the government and companies to raise money overseas.
Investors are already nervous that South Africa's sovereign credit rating could slip into "junk" territory following a Dec. 4 downgrade by Fitch to one notch above junk, citing the slowing economy and rising debt.
The agency said on Monday "the replacement of a second finance minister in South Africa within five days has not enhanced confidence in government effectiveness" and signalled February's budget would be key to assess the government's commitment to prudent management of the public finances.
"The reappointment of Gordhan does not remove all the uncertainty over government effectiveness and the coherence and credibility of economic policy generated during a turbulent week," Fitch Ratings said in a statement.
That sentiment was echoed by investors.
"Whilst there have been many issues over the last few years that have hurt our standing in the global investment community, the recent events pale in significance," Lentus Asset Management chief investment officer Nic Norman-Smith said.
"It's going to take many years to regain trust even if the best case scenario would be for Zuma to be recalled as president immediately."
Chief executives of the major banks and insurance firms said in a joint statement they strongly supported Gordhan's appointment.
"Given the extraordinary volatility experienced in the rand, bonds and equity markets during Thursday and Friday of last week, it was vital that the South African government send as strong a signal as possible to both citizens and investors," the statement said.