Cabinet reshuffle ‘like moving deck chairs on sinking Titanic’ - economist
President Cyril Ramaphosa’s cabinet reshuffle has been met with mixed reaction as the changes to the executive take effect.
Acting Chief Justice Raymond Zondo officiated the ceremony at the Union Buildings on Friday, hours after Ramaphosa made the announcement.
Newly appointed Finance minister Enoch Godongwana is serving at the national executive for the first time under Ramaphosa’s administration.
But he’s no stranger to the executive having served as deputy minister of Public Enterprises and deputy minister of Economic Development under the Jacob Zuma administration.
While he has been described as a pair of steady hands, Godongwana has a massive task ahead of him.
Econometrix chief economist Azar Jammine believes Godongwana is up for the challenge.
“Theoretically, if he is to follow the path by President Ramaphosa, the economic recovery plan, then certainly key changes need to be made.
“We need a hell of a lot more movement in regard to some of the structural changes, including far more fundamental reform of state-owned enterprises, far more attacks on incompetence and corruption and far more emphasis on infrastructural investment spending and we have to wait to see if he’s actually ready for the task there,” says Jammine
Godongwana himself has a cloud of alleged corruption hanging over his head, dating back to 2012.
“What would have come as some surprise to some would have been the appointment of Enoch Godongwana. This is not a total surprise; Minister Mboweni had made it clear very often that he is not really enamoured by the ministry of finance and in that regard I guess there is a mixed reaction,” says Jammine.
“Firstly, Godongwana is tainted with accusations of corruption. Secondly, he has been head of the ANC’s economic policy transformation unit der many years so he’s very close the political heart of the ANC and it’s economic policies and one questions whether those policies have actually made much progress.”
Other changes to the executive include the appointment of Health minister Joe Phaahla, Tourism minister Lindiwe Sisulu, Defence minister Thandi Modise, Communications minister Khumbudzo Ntshavheni as well as Small Business minister Stella Ndabeni-Abrahams.
Jammine describes Ntshavheni’s appointment to Communications as a step in the right direction.
“But replacing Stella Ndabeni-Abrahams and putting her in charge of Small Businesses leads one to another big criticism,” he adds.
“It’s like moving the deck chairs around on the Titanic of the South Africa economy which is set to eventually sink if there are no major structural changes introduced.”
