Pressure has been piling on finance minister Nhlanhla Nene to resign, following his disclosure to the state-capture inquiry commission, that he had met the Gupta brothers between 2010 and 2013.
Nene is a key ally of Ramaphosa, who reappointed him finance minister in a cabinet reshuffle shortly after he became president earlier this year.
South African President Cyril Ramaphosa accepted the resignation of the country's finance minister Nhlanhla Nene on Tuesday, following what the President described as "errors of judgement".
"We have it on good authority that the current public revelations about your minister of finance are not complete".
Last week Nene told an inquiry into government corruption he had made numerous visits to the Gupta family, friends of former leader Jacob Zuma accused of unfairly winning state contracts and influencing the firing of ministers.
He says the former Labour Minister and former Reserve Bank governor brings "vast experience in areas of finance, economic policy as well as governance".
"I was wrong in meeting the Guptas at their residence", he said.
At the graft inquiry, Nene accused Zuma of pushing policies created to benefit the Guptas, including a massive nuclear power expansion programme.
The biggest opposition party, the Democratic Alliance, issued a similar call, saying Nene is likely to be the subject of lengthy investigations and that he risks "compromising public confidence" in the National Treasury.
"I have made a decision to accept his resignation", Ramaphosa told a televised press briefing in Cape Town.
"The ANC further commends Comrade Nene for the commitment he has shown to the well-being of the country", ANC national spokesperson Pule Mabe said.
Nene was initially hailed as a hero when he told the inquiry that Zuma had fired him in 2015 for "refusing to toe the line" on projects that would have benefited the wealthy Gupta family and others close to the then-president.
The communist party praised Nene for refusing to hand South Africa over to what it called the highest bidder, by refusing to sign the nuclear contract, which former president Jacob Zuma wanted to enter into with Russian Federation.
"Ramaphosa has sought to act swiftly to calm market jitters and demonstrate his ability to act on questionable conduct in his cabinet", Abdul Waheed Patel, the MD of Cape Town-based Ethicore Political Consulting, said by phone.
The IFP said it was concerned that Ramaphosa did not use the opportunity to also get rid of controversial ministers Bathabile Dlamini and Malusi Gigaba, but welcomed Mboweni's appointment.