Cape Town - Should Finance Minister Pravin Gordhan be arrested for his involvement in the South African Revenue Service's (Sars') so-called rogue unit, it will have a swift and awful effect on the markets and completely shake confidence in the country's economy.

This is according to one of the country's leading economists, Mike Schussler of Economists.co.za, who was responding to weekend reports of Gordhan's "imminent arrest" after the Hawks handed a docket over to the National Prosecuting Authority (NPA) for his involvement in the rogue unit.

If Gordhan does get arrested, it would be the first time a major country takes its finance minister into custody, said Schussler, adding that the effect on financial markets would be "awful and quick".