The announcement coincides with the 22nd anniversary of Mandela's release from prison after serving 27 years in jail for his opposition to white-only rule.
"It is a befitting tribute to a man who became a symbol of this country's struggle for freedom, human rights and democracy," Zuma said.
"With this humble gesture, we are expressing our deep gratitude as the South African people, to a life spent in service of the people of this country and in the cause of humanity worldwide."
News on Friday that Zuma would make an announcement of "national importance", along with Finance Minister Pravin Gordhan and Reserve Bank Governor Gill Marcus, spooked the market and sent the rand tumbling as much as 2.6 percent on the day. Marcus apologised for the confusion.
The new notes featuring Mandela, who became South Africa's first democratically elected president in 1994, will be in circulation by the end of the year.
The frail 93-year-old has not been seen in public since the closing ceremony of the Soccer World Cup in Johannesburg in July 2010.
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I'm confused to term any of our country's leaders as Mandela.
Whether to call them the Mandela or Hitler?
Or we're born unlucky to have anyone like him?
@BruteForce: I dont think its a zero sum choice
@colonel... allama iqbal int'l airport, iqbal park, iqbal town... etc, spare us the cost... if they havent done it till now dont give them more bright ideas to loot our money
Nelson Mandela was a great admirer of Gandhi and his ways and has said so many times in the past. No wonder he was successful.
I dont think Pakistanis would be too happy to know that Jinnah and Mandela have almost nothing in common. Nelson Mandela is an avid admirer of Gandhi, while Jinnah despised him and his ways. Nelson Mandela spent years in prison, like Gandhi but Jinnah didn't spend a day in jail.
Ignorance is bliss, they say. So, who will it be, Pakistanis? Mandela or Jinnah, you cant admire both!
@ Robin, ANP is only a political party but trust me All Pashtoon never support everything of ANP. All Pashton support anyone who does something good for us, incuding change of names of any place which represent repression and identity theft. Khyber Pashtoonkhwa represent all those pashtoon, who may belong to any party or group. Similarly Kohat Tunnel or Chitral Tunnel, these are mega project of Khyber Pakkhunkhwa and these should be named afgter the prominent personality of KP. Do you have any problem?
@Colonel: Couldn't agree more. It must be done
We should put Dr Allam iqbal's picture on some of our currency, how about tha?
@Ahsan: lol u r right :)
A great leader who were put behind the bars for fighting the rights of the black people of South Africa.
He was awarded Nobel Peace Prize in 1993.
His long and outstanding struggle will always be remembered in the world.
It will be an honour for all South Africans that they will be having his picture on the South African currency notes.
well deserved award for a leader of Mandela's caliber
he is also a noble peace prize award winner !!
Great tribute
Look at them, mandala did not push for it under his own rule...The ancestors do that to honor him..We Pakistani's must learn from them...
I look forward to the day we in Pakistan can lay claim to a leader like Nelson Mandella to rise up and lead us out of the mess our so called leaders have put us into over the years.