Johannesburg, 1 July 2024 – Business Leadership South Africa (BLSA) congratulates the newly appointed Cabinet members of the government of national unity (GNU) and acknowledges the efforts of President Cyril Ramaphosa and all members of the GNU in overcoming their differences and prioritising the needs of South Africa’s citizens by agreeing to a path of rapid, inclusive and sustainable growth.

BLSA CEO, Busisiwe Mavuso, said: “It was a long time in the making, but last night’s announcement of a final agreement for a Government of National Unity and the cabinet sets us on a new course. We are finally at the starting line of the new administration, but its success will depend on the deals done over the last month. The agreements set the foundation. The firmer they are, with all sides understanding exactly their roles and responsibilities, the more stable and effective we can expect this coalition government to be.

“The very large size of the GNU Cabinet does raises concerns about budget, efficiency and the ability to govern effectively while balancing the competing interests of the coalition partners and other stakeholders.”

Key ministerial appointments for business confidence

BLSA applauds the continuity associated with reappointing Enoch Godongwana as Minister of Finance. Minister Godongwana’s confidence, discipline, political capital, expertise, and ability to inspire investor confidence bode well for the economic clusters, and by extension the country’s economic growth and development.

The appointment of Minister Parks Tau to head up the Department of Trade, Industry and Competition (DTIC) is an important one and organised business looks forward to seeing an acceleration of pro-growth policies and reforms to address South Africa’s economic challenges and provide stability and investor certainty in this key economic portfolio.

There has been good progress made in resolving the country’s energy crisis and organised business has collaborated well with Minister Kgosientho Ramagopa as Minister of Electricity. The addition of Energy to the portfolio will help support the just energy transition and pave the way for further reform of the energy sector.

All South Africans will be looking to the new Ministers of Police, Justice and Constitutional Development, and Correctional Services to work together to accelerate the fight against crime and corruption, one of the focal areas of the partnership between business and government.

Other ministries critical to catapulting South Africa into a new era of job-rich and inclusive growth include agriculture; land reform and rural development; and international relations and co-operation. The performance of these portfolios will be under scrutiny from the electorate in terms of the measures they take to strengthen confidence in state delivery. It is hoped the existing, pro-growth initiatives can be can fast tracked.

BLSA applauds President Ramaphosa’s emphasis on the professionalisation of the public sector as an agreed priority of the GNU.

“Skilled management and clearly defined roles and responsibilities will be key. We trust the Cabinet ministers in the GNU will pay careful attention to appointing competent and committed public servants, who carry the responsibility and authority to execute policy — especially the directors-general (DGs) and their deputies (DDGs) who lead government departments. These appointments are critical to problem solving and inspired delivery. Every high-level public servant appointment is an opportunity to strengthen governance.

“We look forward to engaging with the new cabinet. South Africa needs leaders of integrity, with the right skills and experience, and who are committed to driving the reforms necessary to put the country back on a path to prosperity — for the benefit of all its citizens. Now the hard work and heavy lifting starts,” said Mavuso.

 

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