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.
It remains to be seen how well the rest of the economics cluster will function, with the addition of yet another unnecessary Department for Small Business Development. We have argued before that this department is superfluous, and will only complicate the debate about the future economic direction our economy is to take.
The priority for this administration should be getting the whole government to support a unified vision and policy direction that is focused on economic growth that creates jobs. The addition of another ministry is sure to introduce yet another economic plan, championed by another minister, and competing with the National Development Plan.
People with disabilities will take no comfort in having the crucial issues they face being placed within the domain of Bathabile Dlamini, who has been a disastrous minister of social development.
The cabinet announced today needs to be given time before its performance can be properly assessed. The DA for its part will watch each of these ministries very closely and hold them to account. We will do everything in our power to ensure that each new minister respects the constitution and that corruption and mismanagement is appropriately dealt with.
Statement issued by DA leader, Helen Zille, May 25 2014
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