President Zuma's new, even bigger cabinet is bad news for economic growth and job-creation
President Jacob Zuma's announcement of his new cabinet does not inspire confidence that South Africa's major challenges - weak economic growth, unemployment and corruption - will be tackled effectively in the President's second term.
The continuity in some crucial departments must be welcomed, like in Basic Education and Health, as must be the moving of some non-performers, like Nathi Mthethwa, Jeff Radebe and Susan Shabangu. However, other non-performing ministers have been retained (like Thulas Nxesi and absent Labour Minister, Mildred Oliphant) in the cabinet and in some instances moved to crucial portfolios. In particular, the move of Tina Joemat-Petterson to the Department of Energy is lamentable. Ms Joemat-Petterson performed very poorly as Minister of Agriculture, and does not deserve to serve in the executive.
President Zuma has expanded his already excessively large executive to include more new departments and several additional deputy ministers. What the government needs is a leaner, more effective administration, not an ever growing executive. It is clear that these new positions have little to do with efficiency, and everything to do with solving the ANC's internal political problems at public expense.
In the economic cluster, the move of Pravin Gordhan from the Treasury to Co-operative Government will almost certainly have negative consequences for international investor sentiment towards South Africa. We hope that over the coming years Minister Nhlanhla Nene will prove that he can get rising government debt levels under control and that he can instil a sense of fiscal discipline that has been lacking in recent years.
We hope that Minister Gordhan will bring his trademark efficiency to the Department of Co-operative Government and Traditional Affairs, which has underperformed for several years.