‘Cabinet reshuffle positive for the economy’

Prof Raymond Parsons

Despite the inevitable political compromises, on balance the reshuffling of the cabinet is a positive step for the economy.  This is according to NWU School of Business and Governance economist, Professor Raymond Parsons.

”Although the changes to the Cabinet are inevitably the outcome of political compromise, the latest reshuffle of the Cabinet by President Cyril Ramaphosa is a potentially positive development, which must now demonstrate that it can implement the message of economic renewal.

“Overall the Cabinet reconfiguration can be good for the economy but the performance of new Cabinet will also be held to high standards of clean government. With an election pending next year the new Cabinet will not have much time to achieve the necessary outcomes and will need to tackle its challenges urgently.”

Professor Parsons says the reshuffled Cabinet must now be dedicated to doing its best to reinforce the better economic prospects that are now emerging.

“It is likely to be well-received by business and the markets, and the rand has already strengthened. In particular the appointment of Minister Nene as the new Minister of Finance will be welcomed.

“The selection of Pravin Gordhan to the portfolio of Public Enterprises, Naledi Pandor to the portfolio of higher education and Derek Hanekom at Tourism are also positive developments. The economic cluster in the Cabinet seems stronger, especially regarding state-owned enterprises. It is hoped that there will be more stability in Cabinet appointments to help promote greater policy certainty.”

Professor Parsons adds that the  statement by President Cyril Ramaphosa of the future intention to streamline and reduce the size of the Cabinet in due course to cut the cost of government in SA is welcome.

“It remains important to focus on the restructuring of government in the longer run in ways which will enhance the efficacy of the public sector to strengthen delivery of public services.”