Malusi Gigaba’s new economic advisor will be used as a battering ram in battles with National Treasury

The Minister of Finance, Malusi Gigaba’s, reported controversial appointment of Professor Chris Malikane as his economic advisor should come as no surprise in South Africa.

The minister set out his political agenda in his maiden press conference on 01 April 2017, which includes: transforming the economy by implementing “radical economic transformation”; and transforming National Treasury because it is dominated by “orthodox economists, big business, powerful interests and international investors”.

The appointment of Professor Chris Malikane, who appears to have been trained at the “Hugo Chavez School of Economics”, is entirely understandable and a logical consequence of the minister’s political agenda, to implement “radical economic transformation” and to take on orthodox economists at National Treasury.

The fact is that Professor Chris Malikane has been appointed precisely because he is an unorthodox economist and he will be used as a ministerial battering ram in coming battles with orthodox economists at National Treasury.

In the end, Professor Chris Malikane’s appointment will reinforce the perception held by the ratings agencies that there will be major shifts in economic policy, which will shake investor confidence and contribute to a ratings downgrade of South Africa.

Statement issued by David Maynier MP, DA Shadow Minister of Finance, 16 April 2017